Calculate GDP for this economy by each of the expenditure

Assignment Help Business Economics
Reference no: EM131084762

During the current year ABC computer company makes $1M worth of computer com- ponents. Their labor costs are $500k and they pay $100k in indirect taxes. ABC sells all of the output to XYZ who incorporate the components into 50 computers. Assembly of each computer requires $10k of labor. They also pay $1k in interest per computer on loans that they took out to O¨nance the construction of the computers. They market the computers for $40k each. By the end of the year only 35 of the computers have been sold. The unsold computers are held on their books as inventory at $31k each.

(a) Calculate GDP for this economy by each of the expenditure, product (i.e. value added) and income approaches (show how each number is obtained).

(b) Now suppose instead that ABC produces $2M of components half of which are sold directly to consumers. Their labor costs and indirect taxes both double. The remaining components are sold to XYZ as before and there is no change to what XYZ does. Recalculate GDP by each of the approaches.

Reference no: EM131084762

Questions Cloud

Evaluate bureaucracy as coequal branch of federal government : Using a news article from the last four weeks that demonstrates this power, evaluate the bureaucracy as co-equal branch of the federal government. Why or why isn't it a "fourth branch"?
When are ketones produced : 1. How can a patient's hydration status be measured by urine color? 2. Research ketonuria. What is this disease? How does it occur, and can it be treated? 3. Why doesn't healthy urine contain any glucose?
Explain how each is expected to affect behavior : Identify the main instruments that governments use to constrain/restrict the behavior of economic agents (consumers and producers). Use a simple model to explain how each is expected to affect behavior.
Generate samples of x and y and calculate w : For random variable W of Example 4.10, we can generate random samples in two different ways: 1. Generate samples of X and Y and calculate W = Y/X.
Calculate GDP for this economy by each of the expenditure : During the current year ABC computer company makes $1M worth of computer com- ponents. Their labor costs are $500k and they pay $100k in indirect taxes. ABC sells all of the output to XYZ who incorporate the components into 50 computers. Calculate GD..
Determine the level-1 dwt coefficients : Apply the 2D-DWT using the Haar wavelet to determine the level-1 DWT coefficients.
Concentration of the non-penetrating solute : What do we call the ability of a solution to cause a cell to gain or lose water, depending on the concentration of the non-penetrating solute inside and out of the cell and the FREE water in the cell?
Calculate the velocity of money : Suppose the money supply in country X is 25000 and nominal GDP is 89500. Calculate the velocity of money and enter it below. Round your answer to the nearest hundredth.
Use market model for home insulation products : To encourage energy efficiency of homes, government offers tax credits for families that spend money to improve energy efficiency of their homes. Use a market model (graph) for home insulation products to show how the tax credit will influence the eq..

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd