DATA EXERCISE #1
Format of the Project:
The Data Exercise must be posted to the LEO Student Assignments as a Attachments are limited
to a maximum two files in doc, docx., xls. xlsx., or rtf. formats. OTHER FORMATS ARE NOT
ACCEPTABLE, will not be reviewed or graded.
Please note that hand-written and scanned works, pdf. files, jpg. files, as well as files posted
in google drive, will not be accepted or graded.
The paper should be written in APA style Research Paper format.
Please note that Use of APA Citation Methodology is required for all parts of the assignment
Written projects must be:
1.
typed, double-spaced, in 12-point Times New Roman or Arial font, with margins no
wider than one inch
2.
have footnotes or endnotes, with correct citations
3.
have a bibliography of sources used
4.
include, for each entry, the author, title, city and state of publisher, publisher’s name,
year, and page numbers
5.
prepared using word processing software (Microsoft Word preferred), in a manner similar
to the preparation of a written assignment for classroom submission
Data exercise #1 Assignment
Consists of four parts
Part 1: Expenditures Approach to Calculating GDP (weight 25% of the assignment grade)
Complete the following exercise
Visit the Bureau of Economic Analysis website at
. From the drop-down
menu under “Data”, click on “by Economics Account”. Then click on “National”, “Gross
Domestic Product, and “Full Release and Tables”. Use table 3 (Gross Domestic Product:
Level and Change from Preceding Period). The left columns are nominal GDP (and its components) and the right half represents real GDP (chained 2012 dollars)
a) Create the table that contains the following information for the last quarter. You need this information from both parts of the table 3- (nominal GDP (and its components) from left columns and real GDP (chained 2012 dollars) from the right part of the table 3). Omit the intermediate lines found in Table 3 on the web site.
Gross domestic product
Personal consumption expenditures
Gross private domestic investment
Net exports of goods and services
Government consumption expenditures and gross investment
1.
b)
Calculate the percentage (the proportion) of each category in nominal GDP and
in real GDP.
Using Nominal GDP:
[Personal consumption expenditures / Nominal GDP]*100%
[Gross private domestic investment / Nominal GDP]*100%
[Net exports of goods and services / Nominal GDP]*100%
[Government consumption expenditures and gross investment/ Nominal GDP]*100%
And using Real GDP:
[Personal consumption expenditures /
Real
GDP]*100%
[Gross private domestic investment /
Real
]*100%
[Net exports of goods and services /
Real
GDP]*100%
[Government consumption expenditures and gross investment/
Real
GDP]*100%
Present the information that you received in 1 (a) and 1 (b) as a table(s) in your project.
2.
Write a report (2 pages double – spaced), which contains an analysis of the results
you received.
In this report consider, but do not be limited to the following:
1.
Why was the nominal GDP greater than the real GDP? By how much?
2.
GDP is composed of a number of categories. What category makes up the largest portion
of GDP? What category makes up the smallest portion of GDP?
3.
What is “Gross private domestic investment”? What does gross private domestic
investment measure?
4.
What is “Net exports of goods and services”? Why it is negative?
5.
In the left part of the table 3 (nominal GDP) find the category “National defense”. How
much was the National defense for the last quarter? Calculate percentage of National
defense out of “Government consumption expenditures and gross investment”. Calculate
percentage of National defense out of GDP.
6.
Please analyze and discuss the significance of the data that you received for this Data
exercise. Reflect on what you have learned from this exercise.
Part 2: Income Approach to Calculating GDP (weight 25% of the assignment grade)
Complete the following exercise
:
Go to
Visit the Bureau of Economic Analysis website at
. From the drop-down
menu under “Data”, click on “by Economics Account”. Then click on “National”, “Gross
Domestic Product, and “Full Release and Tables”. Use table 7 (Relation of Gross
Domestic Product, Gross National Product, and National Income) and table 8 (Personal
Income and its Disposition).
1.
Create the table
that contains
the following information for the last year
quarterly.
Omit the intermediate lines found in Tables 7 and 8 on the web site.
Gross
domestic
product
Gross
national
product
Net
national
product
National
income
Personal
income
2. Write a report
in your own words
(1 page, double-spaced), which contains the analysis of
the results you received.
In this report consider, but do not be limited to the following:
1.
What is the difference between gross domestic product (GDP) and gross national product
(GNP)? What is the difference in what GDP measures compared to GNP?
2.
Based on the table, what calculations must you make to determine GNP from GDP?
3.
What is national income (NI)? What does NI measure?
4.
Which was higher in this year, GNP or NI? By how much?
5.
What calculations must you make to determine NI from GNP?
6.
NI is composed of a number of categories. What category makes up the largest portion of
NI?
7.
Please analyze and discuss the significance of the data that you received for this Data
exercise. Reflect on what you have learned from this exercise.
Part 3: GDP in Different Countries (weight 25% of the assignment grade)
Complete the following exercise
:
Go to World Development Indicators database:
http://databank.worldbank.org/data/views/variableSelection/selectvariables.aspx?source=world-
development-indicators
a)
Select 8 countries for your project by checking the check boxes under Country.
b)
Select the 2 data series GDP (current US$) and Population (Total) under Series.
c)
Select the most recent year under Time.
d)
Choose
Layout
on the upper left side of the screen. Under Orientation choose
“Page” for
Time, “
Column
”
for
Series
, “Row” for
Country.
e)
Retrieve data.
You can now retrieve data by clicking on the options on the right
upper side of the window.
Clicking “Table” will allow you to see data.
Click
“
Download options
” and choose “
Data on this page only – formatted
”. This
option will allow you to download the data in Excel, which can then be copied
into your report file. Or you can simply type the required data into the table
below. Fill in the table below.
f)
Present the table in your project.
g)
Calculate the per capita GDP for the most recent available year for the countries
with the equation given in the far right column.
Country
GDP
Population
Per Capita GDP
1
2
3
4 = 2/3
Write a short report
in your own words
(1 page, double-spaced), which contains the analysis
of the results you have gotten.
In this report consider, but do not be limited to the following:
1.
List the countries by highest per capita GDP to lowest.
2.
Does the order remain the same for total GDP as for per capita GDP.
3.
If not, explain why is it different?
4.
Please analyze and discuss the significance of this data and reflect on what you have
learned from this exercise.
Part 4: Index of Economic Freedom (weight 25% of the assignment grade)
Log onto the Heritage Foundation’s website at
https://www.heritage.org/index/
“
Today, we live in the most prosperous time in human history. Poverty, sicknesses, and
ignorance are receding throughout the world, due in large part to the advance of economic
freedom. In 2018, the principles of economic freedom that have fueled this monumental progress
are once again measured in the
Index of Economic Freedom
, an annual guide published by The
Heritage Foundation, Washington’s No. 1 think tank.
For over twenty years the
Index
has delivered thoughtful analysis in a clear, friendly, and
straight-forward format. With new resources for users and a website tailored for research and
education, the
Index of Economic Freedom
is poised to help readers track over two decades of
the advancement in economic freedom, prosperity, and opportunity and promote these ideas in
their homes, schools, and communities.
The Index covers 12 freedoms – from property rights to financial freedom – in 186 countries.”
Click on
COUNTRY RANKING
to find the rank of economic freedom. IMPORTANT – Make
sure you use the Rank and not the Overall Score.
Click on
EXPLORE THE DATA
to find the rank of business, trade, financial freedom, and
property rights.
1.
Find the rank in economic freedom (overall) of the countries that you were using in part
III of the assignment.
2.
Find the rank in business, trade, financial freedom, and property rights of the countries
that you were using in part III of the assignment.
3.
Compare the rank in economic freedom (overall) and other indicators with the order of
the countries using the
per capita GDP
in the table in part III of the assignment.
4.
Present the information that you received in your project as a table.
5.
Write a report
in your own words
(1 page, double-spaced), which contains the
analysis of the results that you received. Discuss the significance of the data and
what you feel is the relevance of rankings. Please reflect on what you have learned
from this assignment.