Homework Help is Here – Start Your Trial Now!
Business
Economics
Consider the following transactions, from a small island economy. Use them to calculate GDP, broken down by category. (That is, you should identify which category each item goes into, and then calculate the total amounts for each category, and then find total GDP.) • Residents buy $400 of locally grown carrots. • A local contractor builds three new houses, which sell for $1,000 each. That same contractor buys a custom crowbar from a local blacksmith for $300. • Residents sell $900 of fish to people in South Dakota. Residents purchase $100 of bread flour from farmers in South Dakota. • The government collects $500 in taxes, and then spends $300 on transfer payments and $200 building a new community center. The blacksmith spends $350 on a used car.

Consider the following transactions, from a small island economy. Use them to calculate GDP, broken down by category. (That is, you should identify which category each item goes into, and then calculate the total amounts for each category, and then find total GDP.) • Residents buy $400 of locally grown carrots. • A local contractor builds three new houses, which sell for $1,000 each. That same contractor buys a custom crowbar from a local blacksmith for $300. • Residents sell $900 of fish to people in South Dakota. Residents purchase $100 of bread flour from farmers in South Dakota. • The government collects $500 in taxes, and then spends $300 on transfer payments and $200 building a new community center. The blacksmith spends $350 on a used car.

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter7: Taking The Nation's Economic Pulse
Section: Chapter Questions
Problem 15CQ
See similar textbooks
icon
Related questions
Question
5
Consider the following transactions, from a small island economy. Use them to calculate GDP, broken down by category. (That is, you should identify which category each item goes into, and then calculate the total amounts for each category, and then find total GDP.) • Residents buy $400 of locally grown carrots. A local contractor builds three new houses, which sell for $1,000 each. • That same contractor buys a custom crowbar from a local blacksmith for $300. • Residents sell $900 of fish to people in South Dakota. Residents purchase $100 of bread flour from farmers in South Dakota. • The government collects $500 in taxes, and then spends $300 on transfer payments and $200 building a new community center. • The blacksmith spends $350 on a used car.
Transcribed Image Text:Consider the following transactions, from a small island economy. Use them to calculate GDP, broken down by category. (That is, you should identify which category each item goes into, and then calculate the total amounts for each category, and then find total GDP.) • Residents buy $400 of locally grown carrots. A local contractor builds three new houses, which sell for $1,000 each. • That same contractor buys a custom crowbar from a local blacksmith for $300. • Residents sell $900 of fish to people in South Dakota. Residents purchase $100 of bread flour from farmers in South Dakota. • The government collects $500 in taxes, and then spends $300 on transfer payments and $200 building a new community center. • The blacksmith spends $350 on a used car.
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Nash Equilibrium
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.
Recommended textbooks for you
Macroeconomics: Private and Public Choice (MindTa…
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Macroeconomics
Macroeconomics
Economics
ISBN:
9781337617390
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS