Communication Equipment Two sectors of the U.S. economy are (1) audio, video, and communication equipment and (2) electronic components and accessories. Suppose in 1998, the input- output table involving these two sectors was as follows (all figures are in millions of dollars). From To Equipment Components Equipment Components 23,000 90,000 Total Output 5,800 400 29,000 140,000 Determine the production levels (in dollars) necessary in these two sectors to meet an external demand for $78,000 million of communication equipment and $89,000 million of electronic components. Round answers to two significant digits. equipment. $ x millions components $ x millions
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- Question 2You have been employed as the chief economist for the economy UWI Land. The head statistician has provided you with the following information:Compensation of Employees900Corporate profits 400Factor income paid to the world 325Factor Income received from the world170Indirect taxes 775Subsidies 125Depreciation 120Consumption of goods 850Net interest 75Rent Income 125Consumption of services 475Residential investments 350Non-residential investments525Government Expenditure 925Imports 700Exports 300Proprietor’s income 300Calculate UWI Land’s GDP using the Income and Expenditure ApproachThe economy of Zambia has two sectors, agriculture and industry. Consumers are the end users ofthe final output. The agriculture sector produces maize worth K16000 and milk worth K16000.Maize worth K4000 as well as milk worth K6000 is sold to consumers for direct consumption, andmaize worth K12000 and milk worth K10000 is sold to the industry as intermediate inputs in theproduction of mealie meal and butter respectively. The industry uses this maize to produce mealiemeal worth K32000 and uses milk to produce butter worth K18000 which are sold to consumersfor final consumption. In addition, the agriculture sector pays wages worth K20000, rent worthK4000 and earns profit equal to K8000. The industry sector pays wages worth K16000, rent worthK6000 and earns a profit of K6000.a) Calculate GDP for the above economy using the three approaches: product approach, incomeapproach, and expenditure approach.b) Peter was bragging to his wife that his country, Zambia, is doing better than his wife’s…The economy of Zambia has two sectors, agriculture and industry. Consumers are the end users ofthe final output. The agriculture sector produces maize worth K16000 and milk worth K16000.Maize worth K4000 as well as milk worth K6000 is sold to consumers for direct consumption, andmaize worth K12000 and milk worth K10000 is sold to the industry as intermediate inputs in theproduction of mealie meal and butter respectively. The industry uses this maize to produce mealiemeal worth K32000 and uses milk to produce butter worth K18000 which are sold to consumersfor final consumption. In addition, the agriculture sector pays wages worth K20000, rent worthK4000 and earns profit equal to K8000. The industry sector pays wages worth K16000, rent worthK6000 and earns a profit of K6000.a) Calculate GDP for the above economy using the three approaches: product approach, income approach, and expenditure approach. b) Peter was bragging to his wife that his country, Zambia, is doing better than his…
- TheeconomyofGhana ismadeupofthreesectorsnamelyAgriculture,Industryand Se rvice s. The se thre e sectors contribute to the national output. For de cade s prior to the 2000s, the Agricultural sector contributed the most to the national output. Sadly, in recent years however, the sector has been the least contributor to national output. Trends in production of major food crops such as maize, rice and sorghum show that on-farm productivity has stagnated and the exploitable difference between the actual and the potential output of most ofthe crops (yield gap) has widened. Low and inadequate levelsofusageofproductivityenhancingtechnologiessuchasqualityseeds of improved varieties and fertilizer, thin extension services and weak market linkages contributes to the poor agricultural performance. It was against this background that theNPP-led government implemented one of her flagship programmes “Planting for Food and Jobs”. The programme is primarily aimed at making subsidized improved seeds and…National Income DeterminationThe following figures are from data on Good Island EconomyItems $mNet private investment 940Depreciation 56Compensation of employees 2 256Corporate taxes 416Personal taxes 756Personal Consumption expenditure 4 386Government purchases 3 182Indirect business taxes minus subsidies 482Payment of factor income to the rest of the world 95Corporate profits minus dividends 56Government transfer payments and interest 243Exports 855Receipts of factor income from abroad 186Imports of goods and services 385Social insurance payments 332 Required: Use the above information to answer the followingi.) Calculate for Good Island:a. Gross private investment b. Gross Domestic product c. Gross National Product d. Net National Product e. National income f. Personal Income g. Disposable Personal IncomeSuppose an economy produces only 2 products that will also be used for directconsumption, as per the article at the end of the exam: chicken wings and donuts. Inthe second quarter of 2021 (the base period), 180,000 pounds of chicken wings wereproduced, at a value of $3.50 per pound, while in the second quarter of 2022,production of chicken wings increased to 200,000 pounds, at a value of $3.75 perpound. In the second quarter of 2021 (the base period), 85,000 donuts were producedat a value of $0.85 per donut, while in the second quarter of 2022, donut productionincreased to 100,000 donuts, each at a value of $0.95 per donut. The population inthis economy is 1000 individuals in 2022, while the number of hours worked in 2022is 5000. Also, the quantities that were produced in 2021 represent the quantities thatwere purchased by the typical household, meaning that everything that was producedwas sold.d. Solve for the amount of labor productivity in the second quarter of 2022.e. Solve for the…
- You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…G. Menges developed the following econometric model for the West German economy*: Yt = β0 + β1Yt−1 + β2 It + u1tIt = β3 + β4Yt + β5 Qt + u2tCt = β6 + β7Yt + β8Ct−1 + β9 Pt + u3tQt = β10 + β11 Qt−1 + β12 Rt + u4t where Y = national incomeI = net capital formationC = personal consumptionQ = profitsP = cost of living indexR = industrial productivityt = timeu = stochastic disturbances Required: a. Which of the variables would you regard as endogenous and which asexogenous?b. Is there any equation in the system that can be estimated by thesingle-equation least-squares method?c. What is the reason behind including the variable P in the consumption function?
- You have just used three of the four variables in the IPAT equation. Now give one example of how the T (technology) variable could potentially increase the total impact of the United States and one example of how it could potentially decrease the U.S. impact.The price of crude oil during the period 2000-2010 can be approximated by P(t) = 6t + 18 dollars per barrel (0 ≤ t ≤ 10) in year t, where t = 0 represents 2000. Saudi Arabia's crude oil production over the same period can be approximated by Q(t) = −0.036t2 + 0.62t + 8 million barrels per day (0 ≤ t ≤ 10). † Use these models to estimate Saudi Arabia's daily oil revenue and also its rate of change in 2008. (Round your answers to the nearest $1 million.) daily oil revenue $ million rate of change in 2008 $ million/yrInput Quanity 100 150 200 Real domestic output 200 300 400 The table gives information about the relationship between input quantities and real domestic output in a hypothetical economy. If the price of each input is $12, the per-unit cost of production in the economy is?