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

Opportunity cost theory, discuss how opportunity cost principles influences...

discuss how opportunity cost principles influences a supplier''s decision to supply labor

Demand and supply, Suppose the demand and supply for milk is described by t...

Suppose the demand and supply for milk is described by the following equations Qd=600-100P; Qs=-150+150P Where P is the price in rand, Qd is the quantity demanded in millions of l

The difference among a floating and managed exchange rate, Explain the diff...

Explain the difference among a floating and managed exchange rate. The key distinction here is that a floating exchange rate is set by market forces, i.e. supply and demand. A

Money and Banking, explain with illustration the meaning of credit creatio...

explain with illustration the meaning of credit creation in commercial banks

What are the costs of economic growth, What are the costs of economic growt...

What are the costs of economic growth? Economic growth can result also into: • Increases within pollution noise and congestion • Unnecessary depletion of non-renewable r

Accredited similar dental offices, Should dental offices be accredited simi...

Should dental offices be accredited similar to the standards that hospitals are?

Help .., I need help with Creating a table showing the CAGR of GDP by decad...

I need help with Creating a table showing the CAGR of GDP by decade and over the entire period of time

Marginal, using the marginal utility theory explain the consumption patten ...

using the marginal utility theory explain the consumption patten of consumers

Analysis, provide data and analysis for the real GDP (as total and per capi...

provide data and analysis for the real GDP (as total and per capita) and its growth rate then draw a graph and identify the periods of the Malaysia’s business cycle 2007 -2011

Monopoly without tax and without price ceiling, Here from a), profit maximi...

Here from a), profit maximizing price = 7 and Q = 10. It is shown in the figure below:- The consumer surplus is shown in blue area which is given as (9-7) *10*1/2 =10 dolla

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