How much would government get if it introduced

Assignment Help Business Economics
Reference no: EM13149520

There are three firms in an economy: A, B, and C. Firm A buys $350 worth of goods from firm B and $150 worth of goods from firm C, and produces 250 units of output, which it sells at $4 per unit. Firm B buys $200 worth of goods from firm A and nothing from firm C, and produces 250 units of output, which it sells at $6 per unit. Firm C buys $300 worth of goods from firm A and $100 worth of goods from firm B. It produces output worth $800. All other products are sold to consumers. Instructions: Round your answers to the nearest whole dollar amount. a) Calculate GDP. GDP = $ b) If a value-added tax (a tax on the total value added by each firm) of 15 percent is introduced, how much revenue will the government get? Revenue $ c) How much would government get if it introduced a 15 percent income tax? Revenue $ d) How much would government get if it introduced a 15 percent sales tax on final output? Instructions: Round your answer to the nearest whole dollar amount. $

Reference no: EM13149520

Questions Cloud

Determine the normal boiling point of a substance : Determine the normal boiling point of a substance whose vapor pressure is 55.1 mm Hg at 35°C and has a Hvap of 32 .1 kJ/mol.
Find how that as size of home increases price also increases : Can we conclude that, as the size of the home (reported below in thousands of square feet) increases, the selling price (reported in $ thousands) also increases?
Computing diluted earnings per share : The average market price of Foyle's common stock was $20 during 2011. What is the number of shares that should be used in computing diluted earnings per share for the year ended December 31, 2011?
Find michael income elasticity (ei) for filets : When Michael got a pay raise and began to earn $6,000 per month, his demand shifted outward to Q = 20 – 0.25P. Given this information, find Michael’s income elasticity (EI) for filets.
How much would government get if it introduced : How much would government get if it introduced a 15 percent income tax? Revenue $ d) How much would government get if it introduced a 15 percent sales tax on final output?
What is depreciation in this year : Calculate GNP, GDP, and aggregate income. GDP = $ GNP = $ Aggregate income = $ b) What is depreciation in this year? Depreciation = $ c) What is NDP? NDP = $
Probability tree showing marginal-conditional probability : The central district students failed. Develop a probability tree showing all marginal, conditional and joint probabilities. Develop a joint probability table.
Alculate the correlation coefficient : alculate the correlation coefficient. If Hammer selects a pair of pants at random, what is the expected price? What is the variance of the price?
To what temperature (in oc) must the gas be heated : A cylinder of propane gas at 25oC has a volume of 32.0 liters. The pressure of the gas in the cylinder is 9 atm. To what temperature (in oC) must the gas be heated to increase the pressure by 2 atm? Assume ideal behavior

Reviews

Write a Review

Business Economics Questions & Answers

  How does the government decide on amount of pollution

How does the government decide on the amount of pollution to allow? What are the potential costs and benefits associated with the regulation of pollution? What are the potential problems associated with employing outright regulation to deal with poll..

  Prove which at the revenue-maximizing quantity

Prove which at the revenue-maximizing quantity, cost elasticity of demand equals one.

  Manufacturer of each product

Describe what a manufacturer of each product might do in the short run to increase production.

  What can we say about marginal costs in relation to atc

Suppose that the average total cost (ATC) of producing 8 units is less than the average total cost of producing 9 units. What can we say about marginal costs (MC) in relation to ATC?

  Explain underlying basis for foreign direct investment

Explain underlying basis for foreign direct investment and discuss several factors that may contribute to it. What factors have likely contributed to current U.S. net direct investment position.

  How lowered the costs and speeded production

the first automobiles were built in 1901, they were manufactured by skilled workers using hand tools. Later, in 1913, Henry Ford introduced the moving assembly line, which lowered costs and speeded production.

  Illustrate what is the average inflation rate

What is the average inflation rate. Explain how would inflation be different if real income growth were higher.

  Objectives using the money markets

Assuming no other changes, if balances in money market deposit accounts increase by $50 billion and small-denominated time deposits decrease by $50 billion.

  Increase unemployment or underemployment

Are you concerned that automation may increase unemployment or underemployment in the United States and around the world.

  Ecessionary expenditure gap in a mixed open economy

A recessionary expenditure gap in a mixed open economy can be measured as the extent to which cumulative expenditures

  Eluciate new income in first round of multiplier process

If in an economy a $120 billion increase in consumption spending creates $120 billion of new income in the first round of the multiplier process.

  Price in excess of time

If the demand for gold residue high explain what would happen to the price in excess of time.

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