Explain how both the flow-of-product approach

Assignment Help Business Economics

Reference no: EM13151958

Joe Producer makes a product that sells for $1,000. In the production process, he pays $750 for wages, $125 for materials, and $ 75 for rent. Three-fourths of Joe's output is consumed and the rest is invested.

Explain how both the flow-of-product approach and the earnings approach can be used to measure GDP and the role profit plays in these calculations. Calculate GDP for Joe using both the product and income approaches and show how they must agree.

Reference no: EM13151958

Questions Cloud

Compare with averages of judgment samples for group : Compute the average of the areas. How does this compare with your guess? How does it compare with the averages of the judgment samples for the others in your group?

Features of absorption costing : What characteristic of absorption costing caused the drop in net operating income for the second quarter and what could the controller have said to explain the problem?

What is the delta e for the reaction : delta H=483.6 kJ/mol If 2.0 moles of H2O(g) are converted to H2(g) and O2(g) against a pressure 1.0 atm at 145 degrees C, what is the delta E for this reaction?

How many grams of acetic acid are in vinegar : If 3.20mL of vinegar needs 41.5mL of 0.150 molarity NaOH to reach the equivalence point in a titration, how many grams of acetic acid are in a 1.50qt sample of this vinegar?

Explain how both the flow-of-product approach : Explain how both the flow-of-product approach and the earnings approach can be used to measure GDP and the role profit plays in these calculations.

Compute the heat given off by the burning mg : Calculate the heat given off by the burning Mg in kJ/g. b)Calculate the heat given off by burning Mg in kJ/mol

Determine the yielding expected profit : Yyielding a $20,000 profit, and a 30% chance that the building will sell for $230,000, yielding a $70,000 profit. What is the expected profit? = E( X - ) = ( xi - What is Var(X)?

Calculate the cell potential : Consider the cell described below. Al | Al3+ (1.00 M) || Pb2+ (1.00 M) | Pb Calculate the cell potential after the reaction has operated long enough for the [Al3+] to have changed by 0.32 mol/L. (Assume T = 25°C.)

What is the probability that the next customer pays : What is the probability (±0.001) that the next customer pays at least $30? What percent of customers who pay at least $30 pump premium? % (Round your answer to the nearest whole number.)

User Account

All Pages