Accounting system-example i, Macroeconomics

Assignment Help:

 

ACCOUNTING SYSTEM-EXAMPLE I 

Consider a very simple economy. It consists of

a. A number of households.

b. A single productive organization, a 'firm' - say the Jam Corporation.

The firm, owned by some of the households, engages in the manufacture of jam from freely available fruits and labor hired from the households. Thus the only scarce input or factor of production is labor. In a given year, the firm's accounts are as follows:

                                                       Production Account  

 

547_Production Account.png

 

The consolidated account of the household sector is: 

                                                  Household Account 

 

                           2434_Production Account.png

 

The Gross National Product (GNP) of this economy is the value of output, viz.100. The Gross National Income (GNI) is the value of payments for services of factors of production - labor and 'ownership' - viz. wages, salaries and profits which also add up to 100 as they should.

GNP = GNI for this economy. 

 

 

 


Related Discussions:- Accounting system-example i

What are the slopes of demand curves, Use the points on the graph below to ...

Use the points on the graph below to answer the following questions. i)   What is Ep along D1 (from A to B)? ii)  What is the Ep along D2 (from X to Y)? iii) What are

Relate central banks with commercial banks, Relate central banks with comme...

Relate central banks with commercial banks In many countries, the central bank imposes reserve requirements. This means that commercial banks are obliged to hold a certain perc

Certain private property rights, The more certain private property rights a...

The more certain private property rights are, a. the less people need to invest in education or human capital development. b. The less entrepreneurship there will be. c. t

Estimate the mean value, Cornell University conducted a study of wage diffe...

Cornell University conducted a study of wage differentials between men and women reported that one reason that men's wages are higher is that men tend to have more years of work ex

Market structure, Ask question #Minimum 100 words accepWith aid of evidence...

Ask question #Minimum 100 words accepWith aid of evidence in the given article, comprehensively discuss the market structure in the South African mobile telecommunications industry

Factors shift out the ppc, What factors shift out the PPC and what is the o...

What factors shift out the PPC and what is the opportunity cost of the economy moving out to get back on the PPC? Explain?

Aggregate supply - long run equilibrium:graphical analysis, Long Run Equili...

Long Run Equilibrium:Graphical Analysis In the long run the natural rate of output is the level of output to which the economy will tend to adjust in the long run. This indicat

Write Your Message!

Captcha
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