An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales?

An automobile manufacturer uses labor, capital, and a variety of intermediate goods in the production of cars. The car requires $4,000 of steel, $6,000 seats, $10,000 of electronics, $2,000 tires, $10,000 of labor, $5,000 of capital and has a 20% sales markup to consumers. a. What is the total value of intermediate goods? b. What are the total payments to factors of production? c. What is the total value of sales?

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Measuring A Nation's Income

Section: Chapter Questions

Problem 9PA

See similar textbooks

Similar questions

1/3 of a unit of capital goods. 3 units of capital goods. 6 units of capital goods. 1/6 of a unit of capital goods.
Intermediate vs. Final Goods For each blank place either an “I” if the scenario is an intermediate good, or an “F” if it is a final good. 1) Shampoo is bought and used by a hair stylist in the mall. 2) A family buys some finger paint for their child to use. 3) A person buys a tire to replace to flat one on their car. 4) A hotel chain buys a box of pens. 5) Flour is bought and used to bake a cake to be sold at a bakery. 6) Someone buys a steak to grill at home. 7) An accounting firm buys calculators for its accountants. 8) A person buys shampoo to use at home. 9) Flour is bought and used to bake a cake for a birthday. 10) A student buys a pack of pens to do their homework. 11) A restaurant prepares a steak for its customers. 12) A factory buys tires to place on their cars. 13) An artist buys paints for a painting, with the intention of keeping it. 14) A calculator is bought and used for…
Suppose U.S. drivers purchased $50 billion of ExxonMobil-produced gasoline during a recent year, with one-half purchased directly from ExxonMobil-owned gas stations and one-half from independent (or third-party) gas stations. Suppose further that ExxonMobil purchased the oil (which it refined into gasoline) from foreign producers for $20billion and that it receives 60 percent of the sales revenue that independent stations generate from selling ExxonMobil gasoline. In this case, the value added by ExxonMobil to U.S. GDP is $__billion.
A farmer produces rutabagas and sells them to the agricultural firm Conagra. Conagra packages the rutabagas with other vegetables in a salad blend that it sells to the public. The rutabagas produced by the farmer would be considered invetory goods, transitory goods, final goods or intermediate goods?
Ginting likes both orange juice and apple juice. He consumes nothing else. The consumption bundle where Ginting consumes XA bottles of orange juice per year and XB bottles of apple juice per year is written as (XA, XB). Last year, Ginting consumed 28 bottles of orange juice and 7 bottles of apple juice. Ginting is indifferent between (XA, XB) and (28,7) is the set of all bundles such that XB = 196/XA. The set of bundles (XA, XB) such that Ginting is just indifferent between (XA, XB) and the bundle (14, 21) is the set of bundles such that XB = 294/XA. A. Identify on the graph several points that lie on the indifference curve that passes through the point (28, 7), and sketch this curve, using blue ink. Do the same, using red ink, for the indifference curve passing through the point (14, 21). B. Use grey ink to shade in the set of commodity bundles that Ginting weakly prefers to the bundle (28, 7). Use blue ink to shade in the set of commodity bundles such that Ginting weakly prefers (14,…
What determines whether a good is “capital” or a “consumer good”? How it is purchased: with business funds or with personal funds How it is used: to produce further wealth, or to be consumed Where it is located: in a home or in a business Where it is purchased: from a wholesaler or from a retailer Who uses it: the person buying it or an employee of theirs
Roberto is a senior citizen who consumes food and health care. When he retired in 2002, he consumed 90 meals and 3 medical checkups per month. Suppose in 2002 that the price of a meal was $10 and the price of a medical checkup was $64. However, in 2012, the price of a meal is $11 and the price of a medical checkup is $278. As a result, Roberto consumes 100 meals and 2 medical checkups per month. Calculate a Laspeyres cost-of-living index for Roberto using 100 as the base in 2002. In particular, the Laspeyres index for 2012 is nothing. (Enter your response rounded to two decimal places.)
During the 1980s, 1990s, and the first decade of the 20th century, the United States experienced a significant inflow of capital from abroad. For example, Toyota, BMW, and other foreign car companies built auto plants in the United States. Draw a diagram of the U.S. capital market, show the effect of this inflow on the rental price of capital in the United States and on the quantity of capital in use. Describe it in words. b) Using a diagram of the U.S. labor market, show the effect of the capital inflow on the average wage paid to U.S. workers.
i. Draw a circular-flow diagram and Identify the parts of the model that correspondto the flow of goods and services and the flow of dollars when Paul purchases a pair of shoes for $30. ii. Draw a circular-flow diagram and dentify the parts of the model that correspondto the flow of goods and services and the flow of dollars whenShannon receives a salary of $1,500 per week at the supermarket whichshe works. iii. Draw a circular-flow diagram and dentify the parts of the model that correspondto the flow of goods and services and the flow of dollars when Honda Limited receives $20,000 for the sale of a sports utility vehicle. iv. Draw a circular-flow diagram and dentify the parts of the model that correspondto the flow of goods and services and the flow of dollars whenMark earns $2,000 from his 15 percent ownership of Apple stock. B.Classify The following statements as positive or normative. Explain. I.Higher tax rates discourage savings and working.
11 The statement that correctly describes the capital goods is __________. a. Labor power used for producing a product b. None of the options c. Goods and services that are consumed fully when purchased by the consumers d. Goods such as tools machinery etc. which are used to create final consumer goods
Suppose the information in the table is for a simple economy that produces and consumes only four goods and services: textbooks, hamburgers, shirts and cotton. 2011 2012 2013 Product Quantity Price Quantity Price Quantity Price Textbooks 90 $50 100 $60 100 $65 Hamburgers 75 2 100 2 120 2.25 Shirts 50 30 50 25 65 25 Cotton 100 0.80 800 0.60 120 0.70 Please enter only numbers (no commas, dollar signs etc) in the spaces provided. Calculate the cost of the market basket for 2011. (using 1 decimal place). ____ Calculate the cost of the market basket for 2012. (using 1 decimal place). ____ Calculate the cost of the market basket for 2013. (using 1 decimal place). ____
What is a ‘final good’? Select one: a. A good not used as an input in the production process b. A natural resource used to produce a good c. A good purchased as an input in the production process d. A good used in the production of another good