5) Economic activities in a three-sector hypothetical economy for 2020 are given below. Compute GDP using both the expenditure approach and the factor payment approach. There is no government and no depreciation. A. Agriculture: thousands of self-employed farmers. Manufacture: Sigma Auto, Inc. (a car producing company) Service: Super M (a chain of food market) B. Sigma Automobile produced 2,000 small cars, which it sold at $6,000 each, and 200 trucks, which it sold at $8,000 each. Consumers bought 1600 of the cars, and the remaining 400 cars were exported to abroad. Super Market bought all the trucks. C. Sales at Super M markets amounted to $28 million, all of it sold to consumers. D. Self-employed farmers sell all of their products to Super M. Sigma Auto Super M Farmers Wages $7,600,000 $9,000,000 so Interest 200,000 400,000 1,400,000 Rent 400,000 2,000,000 4,000,000 Purchase of food 14,000,000

5) Economic activities in a three-sector hypothetical economy for 2020 are given below. Compute GDP using both the expenditure approach and the factor payment approach. There is no government and no depreciation. A. Agriculture: thousands of self-employed farmers. Manufacture: Sigma Auto, Inc. (a car producing company) Service: Super M (a chain of food market) B. Sigma Automobile produced 2,000 small cars, which it sold at $6,000 each, and 200 trucks, which it sold at $8,000 each. Consumers bought 1600 of the cars, and the remaining 400 cars were exported to abroad. Super Market bought all the trucks. C. Sales at Super M markets amounted to $28 million, all of it sold to consumers. D. Self-employed farmers sell all of their products to Super M. Sigma Auto Super M Farmers Wages $7,600,000 $9,000,000 so Interest 200,000 400,000 1,400,000 Rent 400,000 2,000,000 4,000,000 Purchase of food 14,000,000

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

Section: Chapter Questions

Problem 7PA

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