Economic activities in a three-sector hypothetical economy for 2020 are given below. Compute GDP using both the expenditure approach and the factor payment approach. There is no government and no depreciation. a) Agriculture: thousands of self-employed farmers. Manufacture: Sigma Auto, Inc. (a car producing company) Service: Super M (a chain of food market) b)Sigma Automobile produced 2,000 small cars, which it sold at $6,000 each, and 200 trucks, which it sold at $8,000 each. Consumers bought 1600 of the cars, and the remaining 400 cars were exported to abroad. Super Market bought all the trucks. c)Sales at Super M markets amounted to $28 million, all of it sold to consumers. d)Self-employed farmers sell all of their products to Super M.
Economic activities in a three-sector hypothetical economy for 2020 are given below. Compute GDP using both the expenditure approach and the factor payment approach. There is no government and no depreciation. a) Agriculture: thousands of self-employed farmers. Manufacture: Sigma Auto, Inc. (a car producing company) Service: Super M (a chain of food market) b)Sigma Automobile produced 2,000 small cars, which it sold at $6,000 each, and 200 trucks, which it sold at $8,000 each. Consumers bought 1600 of the cars, and the remaining 400 cars were exported to abroad. Super Market bought all the trucks. c)Sales at Super M markets amounted to $28 million, all of it sold to consumers. d)Self-employed farmers sell all of their products to Super M.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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)Economic activities in a three-sector hypothetical economy for 2020 are given below. Compute
a) Agriculture: thousands of self-employed farmers.
Manufacture: Sigma Auto, Inc. (a car producing company)
Service: Super M (a chain of food market)
b)Sigma Automobile produced 2,000 small cars, which it sold at $6,000 each, and 200 trucks, which it sold at $8,000 each. Consumers bought 1600 of the cars, and the remaining 400 cars were exported to abroad. Super Market bought all the trucks.
c)Sales at Super M markets amounted to $28 million, all of it sold to consumers.
d)Self-employed farmers sell all of their products to Super M.
Transcribed Image Text:Sigma Auto
Super M
Farmers
Wages
$7,600,000
$9,000,000
$0
Interest
200,000
400,000 1,400,000
Rent
400,000
2,000,000 4,000,000
Purchase of food
14,000,000
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