User Account

All Pages

What is the gdp of the island-nation

Assignment Help Macroeconomics
Reference no: EM132422393

Exercise:

Yorkland is a small island nation. 

The total population of the island is 1000, out of which 200 earn wage that is on average $50 per year. 

Each wage-earner spends $44 per year to buy consumer goods and services out of which $4 is spent for buying the goods and services from other nations. 

The island exports a total of $1500 worth of goods. 

The Government of the island imposes income tax on wages, which is 10%, and spends all tax money for the island's hospital and school. 

There are only two businesses (services provider and food factory) on the island, and they employ the above mentioned 200 wage-earners. 

The service business spends $600 each year for buying new equipment, while the food factory spends $400. 

Question: What is the GDP (total output) of the island-nation?

Reference no: EM132422393

Questions Cloud

Why a country may want to manipulate the value : Why a country may want to manipulate the value of it's currency? What is a managed float currency and fully floating currency? What is exchange rates?
What is the crisis of social security : What is the "crisis" of social security? Is there a crisis? What time horizon is and should be used to determine the existence of a crisis?
How could unethical marketing affect its brand : Identify at least one way that the company could improve its brand communications.What should the company consider to avoid unethical marketing?
Draw the total interest-short-run total stockpile : Draw the total interest, short-run total stockpile, and since a long time ago run total inventory bends.
What is the gdp of the island-nation : The total population of the island is 1000, out of which 200 earn wage that is on average $50 per year.
How would different learning styles be accommodated : How do learning styles ultimately affect the possibility for a behavioral change? How would different learning styles be accommodated in health promotion?
South africa experiences major challenges : The public education system in South Africa experiences major challenges. One way of dealing with this problem is for government to privatize education
Define responsibilities of nursing role in given situations : Examine changes introduced to reform or restructure the U.S. health care delivery system. In a 1,000-1,250 word paper, discuss action taken for reform and.
Presence of government regulation : Without any presence of government regulation, a single-price monopolist will always charge its consumers the highest price that they are willing to pay."

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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