Assume that a firm buys all the parts that it puts into a computer for $1,200, pays its workers $1,200 to fabricate the computer, and sells the computer for $3,000. The value added of the firm is:
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Assume that a firm buys all the parts that it puts into a computer for $1,200, pays its workers $1,200 to fabricate the computer, and sells the computer for $3,000. The value added of the firm is:
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- Assume an economy with two firms: a coffee beans producer and a coffeeshop. In a given year, a coffee beans producer grows 75,000 tonnes of coffee beans, sells 50,000tonnes of coffee beans to the local coffee shop at $50 per tonne, exports 20,000 tonnes of coffeebeans at $50 per tonne, and stores 5,000 tonnes as inventory. The coffee producer pays $100,000in wages to consumers. The coffee shop produces 1,000,000 cups of coffee and sells all of it todomestic consumers at $4 a coffee. The coffee shop pays consumers $400,000 in wages. Inaddition to the 1,000,000 coffees consumers buy from the local coffee shop, they (consumers)import and consume 300,000 cups of coffee (coffee pods), and they pay $2 per a coffee pod.Calculate gross domestic product using• the product approach,• the expenditure approach, and• the income approach. PLEASE SHOW ALL HAND WRITTEN WORK AND STEPS!!The Boeing Company buys $3 million worth of steel, $2.5 million worth of computer hardware and software, and $1 million worth of mechanical tools to manufacture a certain model of aircraft. Boeing sells this particular model of aircraft at $10 million. What is the value added by Boeing equal to?Suppose a grocery store's sales are 200,000 TL in one year. During this same time period, the firm paid 50,000 TL for grocery stock sold, 70,000 TL for wages and salaries, 20,000 TL on taxes and insurance, and 10,000 TL on other expenses. At the beginning of this period, the grocery store owner had received the following two offers:He could rent the store to another grocer and work for a large chain in which case he wouldmake a return of 35 ,OOO TL during that year (including his salary).Offer II: He could have sold the store and invested in a stock which together would have yielded a returnof 35,000 TL during that year, and gotten a job paying 15,000 TL. He declined both offers. a.What is the difference between explicit and implicit costs to a firm? What is the implicit cost of the businessin question?b.Calculate his economic profits for the year.c.Was his decision to keep the grocery store economically rational? Explain why or why not. By referring tothe relevant concepts.
- Assume that a farmer rents a 20-acre farm in the White Creek Valley. During the current year, the farmer produces 100,000 bushels of wheat that he sells to a miller for $300,000 using various farming equipment. The farmer had to borrow from the bank to buy the farming equipment and pays $50,000 interest. Finally, the labor costs are $200,000 and the rent he pays to the owner of the land is $30,000. The miller produces and sells to “Bang Bakery” in Newark 1,000 lbs of flour worth $600,000. The flour is produced in a $100,000 mill in Hockessin; no rent is paid, the wage bill is $180,000 and interest payments are $70,000. Finally, “Bang Bakery” makes and sells bread to the Newark consumers for $1,000,000. The rent for their factory and their stores is $100,000 – their interest payments are $50,000 - their wage bill, $300,000. It was not a good year for “Bang Bakery.” Calculate the contribution to GDP of these transactions using three different methods: The value added approach Value…Every year the typical family on Planet Econ consumes ten pizzas, seven pairs of jeans and 20 litres of milk. In 2002 pizzas cost $10 each, jeans cost $40 per pair, and milk costs $3 per litre. In 2003, the price of pizzas went down to $8 each, while the price of jeans and milk remained the same. Between 2002 and 2003, a typical family's cost of living: Group of answer choices did not change at all. decreased by 4.5% increased by 4.5% increased by 20% decreased by 20%Suppose there is a simple hypothetical economy in which the only industry is cloud computing. In the cloud computing field, productivity—the amount of goods and services a worker can produce per hour—is measured by the number of lines of code one programmer authors per hour.
- Consider a simple economy whose only industry is fishing. In this industry, productivity is measured by the number of fish one fisherman catches per hour. In the following table, match each example to the productivity determinant it represents.Suppose a simple economy produces five goods: chicken, potatoes, oranges, orange juice, and tractors. The tractors are sold to firms as a final investment expenditure and not sold to the households. Additionally, half of the oranges are used as an intermediate good to make the orange juice, while the other half are sold as a final good to the household. The rest of the domestic goods (chicken, potatoes, and orange juice) are sold to the household as a final consumption good. Quantity (2018) Price (2018) Quantity (2019) Price (2019) Chicken 100$7.00150$8.50Potatoes300$3.00500$4.00Oranges2000$5.003000$5.50Orange Juice500$8.00625$10.50Tractors10$1,000.0012$1,225.00 Using 2018 as the base year, what is the fixed-weight real GDP in 2018? A $25,600.00 B $15,600.00 C $10,600.00 D $20,600.00 Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.Answer completely.You will get up vote for sure.why changes in the cost of living for any particular individual or family may differ from changes in the official cost of living index, the CPI
- Sonya used to earn $25,000 a year selling real estate, but she now sells greeting cards. The return to entrepreneurship in the greeting cards industry is $14,000 a year. Over the year, Sonya bought $10,000 worth of cards from manufacturers and sold them for $58,000. Sonya rents a shop for $5,000 a year and spends $1,000 on utilities and office expenses. Sonya owns a cash register, which she bought for $2,000 with funds from her savings account. Her bank pays 3 percent a year on savings accounts. At the end of the year, Sonya was offered $1,600 for her cash register. Calculate Sonya’s explicit costs, implicit costs, and economic profit. Use the following information to work Problems 2 to 4. Yolanda runs a bullfrog farm. When she employs 1 person, she produces 1,000 bullfrogs a week. When she hires a second worker, her total product doubles. Her total product doubles again when she hires a third worker. When she hires a fourth worker, her total product increases but by only 1,000…In 2014, the cost of a market basket of goods was $2,000. In 2016, the cost of the same market basket of goods was $2,100. Use the price index formula to calculate the price index for 2016 if 2014 is the base year. Suppose that in 2015, a typical U.S. student attending a state-supported college bought 10 textbooks at a price of $100 per book and enrolled in 25 credit hours of coursework at a price of $360 per credit hour. In 2016, the typical student continued to purchase 10 textbooks and enroll in 25 credit hours, but the price of a textbook rose to $110 per book and the tuition price increased to $400 per credit hour. The base year for computing a “student price index” using this information is 2015. What is the value of the student price index in 2015? In 2016? Show your work. What is the difference between gross private domestic investment and net private domestic investment? If you were to determine net domestic product (NDP) through the expenditures approach, which of these two…Explain why changes in the cost of living for any particular individual or family may differ from changes in the official cost-of-living-index, the CPI.