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

Indian economic, What can be the topic to make assignment on indian macro e...

What can be the topic to make assignment on indian macro economics

INFLATION-UNEEMPLOYMENT TRADE-OFF UNDER ADAPTIVE EEX, Explain how inflation...

Explain how inflation unemployment trade-off is not feasible under adaptive expectation.MEC002

Ana, how long will it take for you to help me with assignment

how long will it take for you to help me with assignment

Firm‘s lowest average cost, If the firm‘s lowest average cost is $52 and th...

If the firm‘s lowest average cost is $52 and the corresponding average variable cost is $26, what does it pay a perfectly competitive firm to do if • The market price is $51?

Circular flow of income in a closed economy, circular flow of income in a s...

circular flow of income in a single sector,two sector,three sector and four sector

National income, # ???? .. difference between gdp at market price and nnp...

# ???? .. difference between gdp at market price and nnp at factor cost

Demand for money for as-ad model, Q. Demand for money for AS-AD model? ...

Q. Demand for money for AS-AD model? The money market  The demand for money depends negatively on R,positively on Y and positively on P in AS-AD model

Economic analysistenets of tenets, One of the main tenets of economic analy...

One of the main tenets of economic analysis is that people act in their own narrow interests. Why, then, do people leave tips in restaurants? If a study were to compare the size of

New screening methods adopted price do you exect prevail, You are the manag...

You are the manager of an organization in America that distributes blood to hospitals in all 50 states and the District of Columbia. A recent report indicates that nearly 50 Americ

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