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

Explain growth theory, Q. Explain Growth theory? The purpose of this to...

Q. Explain Growth theory? The purpose of this topic is to try to explain growth in GDP. The models in this topic are very different from the rest of the models as they use only

Kernel density estimator to plot the two densities, The data is posted on B...

The data is posted on Blackboard. Download the data lfs4.dta on your personal computer. This data is from the Labour Force Survey 2003. In STATA, add enough memory to open the data

Calculate present value and interest rate, You win a lottery. You have the ...

You win a lottery. You have the choice of two ways to be paid. If you pick Payout Scheme X, you get $2,750 today. If you pick Payout Scheme Y, you get three payments: $1,000 today,

Short-run after the increase in government purchases, Assume the marginal p...

Assume the marginal propensity to consume = .8, and government purchases increase by $.2 Trillion. 1. Potentially, how much will real GDP increase in the short-run after the inc

Determine elasticity of demand , Consider the consumption decisions of R.B....

Consider the consumption decisions of R.B. Turbo, a new student at T University. Ms. Turbo has only available $1,000 in monthly income to spend on food and housing. In te

Should US laws be changed to require a shorter work week and, One constrain...

One constraint in our economy is time. As a society, we make choices about the allocation of time between work and other pursuits. In the US, most workers are eligible for overtime

Fixation, what is the basis of fixation

what is the basis of fixation

Define individual consumer and total producer surplus, Define the individua...

Define the individual consumer surplus and total producer surplus. Individual consumer: Individual consumer surplus is the net profit to an individual buyer through the purc

Money supply.., term paper on determinat and multiplier of money supply

term paper on determinat and multiplier of money supply

How do tax cuts affect the economy, Tax cuts get better the economy by givi...

Tax cuts get better the economy by giving the people more spending power and higher consumer confidence, which leads to them spending more of all of their income which lead to more

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