with explanation please 1. Consider the economy of "Econland" with only twocompanies. Cacao Beans Inc. is a farm that grows cacaobeans. In addition, the Chocolate Corp. produces chocolatebars and hot chocolate drinks. Consider the followinginformation and answer the questions below. .• Cacao Beans Inc.o Wages paid to employeeso Taxes paid to federal governmento Revenue received from selling cacao$6,000$4,500beans• Cacao beans sold toconsumersS16,500• Cacao beans sold to ChocolateСогр.• Chocolate Corp.o Wages paid to employeeso Taxes paid to federal governmento Beans purchased from Cacao BeansInc. $23,500o Revenue received from selling chocolateS23,500S16,500$6,500bars$25,000o Revenue received from hot chocolatedrinks$45,000a) Calculate GDP of Econland according to the product (valueadded) approachb) Calculate GDP of Econland according to the expenditureapproachc) Calculate GDP of Econland according to the income approach

Gross Domestic Product (GDP) is defined as the final value of all the goods and services produced in…

Consider the economy of "Econland" with only two companies. Cacao Beans Inc. is a farm that grows cacao beans. In addition, the Chocolate Corp. produces chocolate bars and hot chocolate drinks. Consider the following information and answer the questions below. .

Consider the economy of "Econland" with only two companies. Cacao Beans Inc. is a farm that grows cacao beans. In addition, the Chocolate Corp. produces chocolate bars and hot chocolate drinks. Consider the following information and answer the questions below. .

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter4: Labor And Financial Markets

Section: Chapter Questions

Problem 31P: Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes,...

See similar textbooks

Related questions

Q: Given this two-sector economy:

A: Since the question you have asked consists of multiple questions, we will answer the first 2 parts…

Q: For the following, tell a story about what is likely to happen in labor and capital markets using…

A: After a prolonged period of economic recession, the housing sector had begun to expand due to rise…

Q: Suppose the Hong Kong economy is under recession. How does it affect the opportunity cost of going…

A: A recession is an economic situation where a country faces low demand, slow growth, and less…

Q: What is the Circular Flow model? What are the main components of the model? What each market in the…

A: Circular flow of income is the process where the creation and flow of the money generated and its…

Q: Two sector economic model involves the following activities except O Households will get rents,…

A: Since there are two different questions answer is provided to the first question. "In a two-sector…

Q: In the Specific Factors Model, assume that in Country A, "wheat" is produced by using land and…

A: In the specific factor model, the inputs can be classified as mobile and immobile factors. The…

Q: Please explain what category each of the following fall into, microeconomics or macroeconomics with…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: In 1776, Adam Smith ([1776] 1936) published his treatise, An Inquiry into Nature and Causes of the…

A: Economic development is the process whereby simple low income national economics are transformed…

Q: Discuss the Idea of convergence and Divergence

A: There are numerous trends and instruments to consider in the world of finance and economics. One…

Q: Which of the following economists is credited with developing the notion of "economic time?" Marbury…

A: An economist's involvement in development involves assessing statistics such as GDP and consumer…

Q: Consider a simple economy whose only industry is fishing. In this industry, productivity-the amount…

A: Human Capital: Human capital can be a quality that is intangible, but it helps to raise the…

Q: In the Specific Factors Model, assume that in Country A, "wheat" is produced by using land and…

A: If the price of the leather increases by 7% with no change in the price of wheat, then labor will…

Q: Discuss the importance of studying macroeconomics from business perspectives.

A: Economics is the study of allocating the scare resource in the most efficient way. The study of…

Q: Draw the graph by using the Malthusian model to analyze the change in real wages in the short and -…

A: Since it has not been specified which of the parts of the question are to be answered, only the…

Q: Which of the following is a major macroeconomic goal of nearly every society? increasing government…

A: There are many macroeconomic goals of an economy like to reduce inflation, increase employment,…

Q: Which of the following would be studied in macroeconomics? O a) individual markets b) changes in the…

A: Macroeconomics is the branch of economics that deals with issues concerning the economy as a whole.

Q: Define Economic Stagnation

A: Inflation refers to rise in average price level of goods and services. Economy is at full…

Q: Land is a factor specific to producing olives. When Padua starts to trade, it exports olives. Using…

A: In a simple adjustment of a "specific model of features, there are two categories (goods), one item…

Q: Why is it that an agricultural economy like India is rich but the average Indian is poor? Answer…

A: The following problem has been solved as follows:

Q: Explain all three Circular flow economic models in one structure. ?

A: An economic model is a simplified depiction of reality that enables economic action to be observed,…

Q: Scenario: It is the year 2035, and many people in the United States are very happy with the state of…

A: Unemployment and Inflation Rate: Inflation and unemployment are inversely related. Thus, an increase…

Q: Provide an explanation an economist might give showing why each statement is true: - Entrepreneurs…

A: Meaning of Managerial Economics: The term managerial economics is all about management under…

Q: In reality, the economies of most countries are mixed rather than being pure market or command…

A: Pure market uses private ownership as the means of production but in the command economy, there is…

Q: Why is Productivity important in economics? Give an example scenario Describe Productivity in…

A: Meaning of Production/Production Function: In production the output refers to the supply of…

Q: Why do many communist countries use a command economy

A: The command economy is a part of a communist political framework, while an unregulated economy…

Q: In your own words, Discuss the Idea of convergence and Divergence

A: Convergence and divergence are the two phenomena that portray the growth patterns between the…

Q: In 1776, Adam Smith ([1776] 1936) published his treatise, An Inquiry into Nature and Causes of the…

A: The activities or policies that lead to improving the quality and well-being of the economy as a…

Q: What is the two sector model?

A: The two sector model emphasizes on two way production processes.

Q: Marx argued that paradoxically, increased productivity would cause to rate of profit to _______ over…

A: Producing more goods and services (output) while using fewer resources (inputs) is a measure of…

Q: While traveling by car during one of his many overseas travels, a famous economist spotted scores of…

A: Human capital refers to skills set, knowledge, specialization. It is not physical or tangible…

Q: A complete macroeconomic model would not like include the following market A- labor B- capital C-…

A: Underground market is also known as black market i.e. illegal business of buying and selling of…

Q: The study of macroeconomics covers these economic problems except________. a. Changing behavior of…

A: Macroeconomics is when we study a complete nation's economy as a whole.

Q: In the Specific Factors Model, assume that in Country A, "wheat" is produced by using land and…

A: If the price of any good increases but the cost of production remains the same then the producer…

Q: Consider the figure below, what does these point A, B, D, E, and G shows? Explain these points…

A: This is an example of the production possibility frontier. PPF shows the different combinations of…

Q: Economic crises were explained by Mill, Sismondi, and Marx (recessions). Explain how each came to…

A: Economic crisis is a period in the cycle of economy in which an economy faces problems in its…

Q: Which of the following is not an “acronym” economy?

A: An acronym is a word shaped by contracting an expression by joining specific letters of words in the…

Q: Suppose this economy is producing at point W. Which of the following statements would best explain…

A: A production possibility curve is a curve that explains all the possible combinations where budget…

Q: Is a planned economy just the same as a large MNC in allocating the means of production?

A: Planned economy: - a planned economy is a controlled economy where all economic decisions are taken…

Q: When economists consider the output of all U.S. businesses as a single entity, they are treating…

A: The output level of Economy In an economy, the output is regarded as the number of commodities or…

Q: Explain why modern macroeconomics is simply microeconomics, but at a high level of aggregation.

A: Microeconomics and macroeconomics are the two important branches of economics theory. Microeconomics…

Q: What is the difference between macro and microeconomics? Answer your question with example (s).

A: Microeconomics and macroeconomics are two broad branches of economics. The difference between them…

Q: Distinguish between the following concepts as they apply to Elements of Macroeconomics. Give…

A: Macroeconomic refers to the study of a whole unit. It studies the whole market simultaneously.

Question

with explanation please

1. Consider the economy of "Econland" with only two
companies. Cacao Beans Inc. is a farm that grows cacao
beans. In addition, the Chocolate Corp. produces chocolate
bars and hot chocolate drinks. Consider the following
information and answer the questions below. .
• Cacao Beans Inc.
o Wages paid to employees
o Taxes paid to federal government
o Revenue received from selling cacao
$6,000
$4,500
beans
• Cacao beans sold to
consumers
S16,500
• Cacao beans sold to Chocolate
Согр.
• Chocolate Corp.
o Wages paid to employees
o Taxes paid to federal government
o Beans purchased from Cacao Beans
Inc. $23,500
o Revenue received from selling chocolate
S23,500
S16,500
$6,500
bars
$25,000
o Revenue received from hot chocolate
drinks
$45,000
a) Calculate GDP of Econland according to the product (value
added) approach
b) Calculate GDP of Econland according to the expenditure
approach
c) Calculate GDP of Econland according to the income approach

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Ans. (a)

Ans. (b)

Ans. (c)

Trending now

This is a popular solution!

Step by step

Solved in 4 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Which of the following are microeconomicissues? Which are macroeconomic issues?a. How will an increase in the price of Coca-Cola affect the quantity of Pepsi Cola sold?b. What will cause the nation’s inflation rate tofall?c. How does a quota on textile imports affectthe textile industry?d. Does a large federal budget deficit reduce therate of unemployment in the economy?
1. If the sales tax increases to 12%, what percentage of our Archie's income will jeff now pay in text on his $150 bill? Show your work. 2. Will he make adjustments to his purchases and if yes, how will he adjust? If no, why not? 3. If the sales tax increases to 12%, what percentage of Jeff's income will Archie pay in tax on his $150 bill? Show your work.
3(a) According to Adam Smith, discuss what brings about the differences in one’s ability to sympathize with sorrow and with joy. b) What is the role of the state according to Adam Smith? (c) What makes for good taxes? (d) What determines the market price and the natural price of a good according to Adam Smith’s value theory? (e) How does this determine the flow of resources in an economy? Why was this an important contribution? (f) How does Smith measure economic welfare? (only d-f)
-Any government intervention in the market.-Individiuals in free markets pursue their own interest.-If all economic agents are free,the market can allocate the resources efficiently in an automatical way. Is that a command economy or free market economy? a)free market b)command
Consider an economy with a coconut producer, a restaurant, and a govern- ment. The coconut producer produces 10 million coconuts, which are sold for $2 each, generating a revenue of $20 million. The coconut producer pays wages of $5 million to its workers, $0.5 million interest on a loan to some consumers, and $ 1.5 million in taxes to the government. The restaurant buys 6 million coconuts, and the remaining 4 million coconuts are directly bought and consumed by consumers. The restaurant uses coconuts to produce meals that generate a revenue of $30 million. The restaurant pays its workers $4 million in wages, and the government $3 million in taxes. Consumers work for the coconuts producer, restaurant and the government, earning a total of $14.5 million in labour income ($9 million in wages from the private sector, and $5.5 million from the government). They also earn $24 million in after-tax profits (dividends) from the producers, in addition to the interest income of $0.5 million…
Table 4.6 shows the amount of savings and barrowing in a market for loans lo purchase homes, measured in millions of dollars, at various interest rates. What is the equilibrium interest rate and quantity in the capital financial market? How can you tell? Now, imagine that because of a shift in the perceptions of foreign investors, the supply curve shifts so that there will be 10 million less supplied at every interest rate. Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest tale shift makes intuitive sense.
Are households demanders or suppliers in the goods market? Are firms demanders or suppliers in the goods market? What about the labor market and the financial market?
Can you think of any examples of free goods, that is, goods or services that are not scarce?
Do economists have any particular expertise at making normative arguments? In other words, they have expertise at making positive statements (i.e., what will happen) about some economic policy, for example, but do they have special expertise to judge whether or not the policy should be undertaken?
Could a nation be producing in a way that is allocatively efficient, but productively inefficient?
What are the three ways that societies can organize themselves economically?
What are three reasons to study economics?