Suppose you are provided with the following information about an economy that consists of just three firms: STEEL COMPANY i. Revenues from sales Rs. 400 ii. Expenses (wages) Rs. 340 iii. Profits Rs. 60 CAR COMPANY i. Revenues from Sales Rs. 1000 ii. Expenses 1. wages Rs. 500 2. Steel Purchases Rs. 400 iii. Profits Rs. 100 SERVICING COMPANY i. Revenues from Sales Rs. 200 ii. Expenses (wages) Rs. 160 iii. Profits Rs. 40 (a). Compute the GDP in this economy using the following approaches: 1. Final goods approach 2. Value-added approach 3. Income approach

Suppose you are provided with the following information about an economy that consists of just three firms: STEEL COMPANY i. Revenues from sales Rs. 400 ii. Expenses (wages) Rs. 340 iii. Profits Rs. 60 CAR COMPANY i. Revenues from Sales Rs. 1000 ii. Expenses 1. wages Rs. 500 2. Steel Purchases Rs. 400 iii. Profits Rs. 100 SERVICING COMPANY i. Revenues from Sales Rs. 200 ii. Expenses (wages) Rs. 160 iii. Profits Rs. 40 (a). Compute the GDP in this economy using the following approaches: 1. Final goods approach 2. Value-added approach 3. Income approach

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Gross Domestic Product

Section: Chapter Questions

Problem 1SQP

See similar textbooks

Similar questions

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!!
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:
Suppose the following information was published by the Australian Bureau of Statistics in 2017: Item Amount (AUD billion) Household consumption 5,029.81 Government consumption 20,340.92 Exports 1,386.39 Value of cocaine seized at Sydney Airport 20,500 Value of intermediate goods in tractor manufacturing 502,003 Gross private domestic investment 352.69 Imports 386.95 Components used in the manufacture of cars 40,000 Gifts 15,236 Government investment 88.19 Value of second-hand goods 500.00 Value of banned endangered species elephant tasks seized at Melbourne Airport 600.00 Use the information provided to calculate Australia’s GDP in 2017
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.
A firm's value added is a. the revenue it receives for its output, minus the cost of all the intermediate goods it buys b. the revenue it receives by selling its output c. the revenue it receives for its output, minus the taxes that it pays d. the revenue it receives for its output, plus the cost of all the intermediate goods it buys e. usually not included in GDP
The country of Batavia produces only chocolates and watches. Below is a table with recent information on Batavia production and prices. The base year is 2009. Prices and Quantities Year Price of A Box of Chocolates Boxes of Chocolates Price of Watches Quantity ofWatches 2008 $4 100 $50 10 2009 $5 90 $50 15 2010 $5 100 $60 15 2011 $6 80 $65 12 What was nominal GDP, real GDP, and the GDP deflator for 2008? What was nominal GDP, real GDP, and the GDP deflator for 2009? Show your work. What was nominal GDP, real GDP, and the GDP deflator for 2010? Show your work. What was nominal GDP, real GDP, and the GDP deflator for 2011? Show your work. What was the inflation rate for 2010? Show your work. What was the inflation rate for 2011? Show your work.
Suppose an economy produces steel, wheat, and oil. The steel industry produces $80,000 in revenue, spends $4,000 on oil, $8,000 on wheat, pays workers $60,000. The wheat industry produces $120,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $80,000. The oil industry produces $180,000 in revenue, spends $20,000 on wheat, $20,000 on steel, and pays workers $80,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or deaccumulate inventories. Calculate GDP using the production and income approaches.
Durable Goods: $25 Imports: $6 Gross Investment: $23 Services: $20 Nondurable Goods: $18 Depreciation: $8 Exports: $11 Government Purchases: $35 Task 1: Calculate the value of consumption in the economy of Asartaland Task 2: Calculate the value of net investment in the economy of Asartaland. Task 3: Calculate the value of government purchases in the economy of Asartaland Task 4: Calculate the value of net exports in the economy of Asartaland. Task 5: Following the expenditures approach, calculate the value of nominal GDP and “Net Domestic Product (NDP)” of Asartaland.
Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 4000 tonnes of wheat, sells 1000 tonnes of wheat to firm B at $20 per tonne, exports 2500 tonnes of wheat at $20 per tonne, and stores 500 tonnes as inventory. Firm A pays $50,000 in wages to consumers. Firm B produces 50,000 loaves of bread and sells all of it to domestic consumers at $3 per loaf. Firm B pays consumers $10,000 in wages. In addition to the 50,000 loaves of bread consumers buy from firm B, consumers import and consume 20,000 loaves of bread, and they pay $2 per loaf for this imported bread. Calculate gross domestic product using a. the product approach b. the expenditure approach c. the income approach
A small economy produced the following final goods and services during a given month: 3 million pounds of food, 50,000 shirts, 20 houses, 50,000 hours of medical services, 1 automobile plant, and 2 tanks. Good or Service Quantity Market Price Value of Output (Per unit) Pounds of food 3 million pounds $1 Shirts 50,000 $21 Houses 20 $50,000 Medical services 50,000 hours $20 Automobile plant 1 $1,000,000 Tanks 2 $500,000 Based on your calculations, the total value of GDP in this economy is?
Harry's Pepperoni Pizza Parlor produced 10,000 large pepperoni pizzas last year that sold for $10 each. This year Harry's produced 9,000 large pepperoni pizzas (identical to last year's pizzas) but sold them for $15 each. Based on this information, we can conclude that Harry's production of large pepperoni pizzas Multiple Choice increased nominal GDP by $35,000. did not change nominal GDP. increased real GDP by $35,000. did not change real GDP. please help me and give me best explanation thanku
Assume an economy with two firms. Firm A produces wheat and firm B produces bread. In a given year, firm A produces 50,000 bushels of wheat, sells 20,000 bushels to firm B at $3 per bushel, exports 25,000 bushels at $3 per bushel, and stores 5,000 bushels as inventory. Firm A pays $50,000 in wages to consumers. Firm B produces 50,000 loaves of bread, and sells all of it to domestic consumers at $2 per loaf. Firm B pays consumers $20,000 in wages. In addition to the 50,000 loaves of bread consumers buy from firm B, consumers import and consume 15,000 loaves of bread, and they pay $1 per loaf for this imported bread. Calculate gross domestic product for the year using the product approach.