Production and expenditure approaches to GDP

Assignment Help Business Economics

Reference no: EM131196021

Production and expenditure approaches to GDP: Consider three firms: firm A, a mining enterprise; firm B, a steelmaker; firm C, a car maker. Calculate the GDP of this economy by the product and the expenditure approach, based on the following assumptions: All values are in euros. Firm A extracts 10 million euros' worth of core. Firm B produces steel sheet worth 25 million, having bought and used all the core produced by firm A. Firm C has manufactured 75 million euros' worth of vehicles and sold them all to households, having purchased steel sheets for 20 million from firm B. In addition, Firm C imported engines from abroad for 20 million's euro, and purchased 10 million worth of robots also from abroad.

Reference no: EM131196021

Questions Cloud

Think about perfectly competitive labour market : Let’s think about a perfectly competitive labour market with an upward sloping supply curve, a downward sloping demand curve and where wages and prices are completely flexible. Imagine that the real wage is above its equilibrium level. In this case w..

Classical cycle and growth cycle : A distinction is made between a “classical cycle” and a “growth cycle”. What is the difference between the two? Would you expect the extent of any increase in the unemployment rate to be different as we go from the peak to the trough of a “classical ..

Find an article in which either fiscal or monetary policy : Drawing on current business publications, find an article in which either fiscal or monetary policy makers were describing their goals of maintaining stable prices, full employment, and adequate economic growth over time. Which goal was the most impo..

Short-run production process : Is it true that in a short-run production process, the marginal cost curve eventually slopes upward because firms have to pay workers a higher wage rate as they produce more output?

Production and expenditure approaches to GDP : Production and expenditure approaches to GDP: Consider three firms: firm A, a mining enterprise; firm B, a steelmaker; firm C, a car maker. Calculate the GDP of this economy by the product and the expenditure approach, based on the following assumpti..

About perfectly competitive firm fixed costs : Evaluate the following statement: In the short run, information about a perfectly competitive firm’s fixed costs is needed to determine both the profit-maximizing level of output and the amount of profit earned when producing that level of output.

Discuss significant trends in both demand and supply : Using data sources from business publications and the Internet, discuss significant trends in both demand and supply in the copper industry that have influenced the price of copper since September 2011. What are the implications of these trends for m..

Role of the entrepreneur in the economy : What is Schumpeter's view of the role of the entrepreneur in the economy? How is Schumpeter's view of competition in the article different from the price competition you learned in your microeconomics course?

Sustaining technologies and disruptive technologies : What is "creative destruction" and what would be a recent example of it? What is Schumpeter's view of the role of the entrepreneur in the economy? What is the difference between Christensen's "sustaining technologies" and "disruptive technologies" in..

User Account

All Pages