Firm AWages paid to employeesTaxes paid to governmentInput purchased from Firm CRevenue received18817789489Sold to Public (newly produced)Sold to Firm B34362Sold from inventory to PublicUnsold productionAfter tax profi:847335Firm BWages paid to empioyeesTaxes paid to governmentInput purchased from Firm ARevenue received8011462447Sold to Public (newly produced)Sold to Firm C31352Sold from inventory to PublicUnsald Production8280After tax profit191Firm CWages paid to employeesTaxes paid to governmentInput purchesed from Firm BRevenue receivedSold to Public (newly produced)Sold to Government12420052762447226Sold to Firm A89Unsold Production91After tax profit386Additional InformationGovernment transfers22355Interest on government's debtPrivate Saving416What is the value of Consumption (C)?1269What is the value of Gross domestic product (GDP)?1573What is the value of Net government income?1573What is the value of Private disposable income?

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What is the value of Consumption (C)?

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

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Concept explainers

Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.

Question

Firm A
Wages paid to employees
Taxes paid to government
Input purchased from Firm C
Revenue received
188
177
89
489
Sold to Public (newly produced)
Sold to Firm B
343
62
Sold from inventory to Public
Unsold production
After tax profi:
84
73
35
Firm B
Wages paid to empioyees
Taxes paid to government
Input purchased from Firm A
Revenue received
80
114
62
447
Sold to Public (newly produced)
Sold to Firm C
313
52
Sold from inventory to Public
Unsald Production
82
80
After tax profit
191
Firm C
Wages paid to employees
Taxes paid to government
Input purchesed from Firm B
Revenue received
Sold to Public (newly produced)
Sold to Government
124
200
52
762
447
226
Sold to Firm A
89
Unsold Production
91
After tax profit
386
Additional Information
Government transfers
223
55
Interest on government's debt
Private Saving
416
What is the value of Consumption (C)?
1269
What is the value of Gross domestic product (GDP)?
1573
What is the value of Net government income?
1573
What is the value of Private disposable income?

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