#GDP, Macroeconomics

Assignment Help:
There are three firms in an economy: A, B, and C. Firm A buys $450 worth of goods from firm B and $260 worth of goods from firm C, and produces 260 units of output, which it sells at $3 per unit. Firm B buys $110 worth of goods from firm A and nothing from firm C, and produces 310 units of output, which it sells at $3 per unit. Firm C buys $125 worth of goods from firm A and $75 worth of goods from firm B. It produces output worth $1,050. All other products are sold to consumers.
a) Calculate GDP
b) If a value-added tax (a tax on the total value added by each firm) of 16 percent is introduced, how much revenue will the government get
c) How much would government get if it introduced a 16 percent income tax.

Related Discussions:- #GDP

Application of revealed preference approach, Application of Revealed Prefer...

Application of Revealed Preference Approach It has been strongly argued, especially by Sir John Hicks, that one major advantage of revealed preference theory is that it is expl

Define the tools of competitive market, Define the tools of Competitive mar...

Define the tools of Competitive market. Competitive market: The supply and demand model a. The demand curve b. The supply curve c. Factors which cause the demand cu

Explain production possibility curve & competitive firm’s , (a)   Explain t...

(a)   Explain the meaning of efficiency in economics and use a sketch diagram to illustrate its attainment by reference to the Production Possibility Curve.   (b)  Refer to the

Explain production externality, Bob's Bee is a small boutique honey manufac...

Bob's Bee is a small boutique honey manufacturer in Texas.  Bob's neighbor is Jon's James.  The more honey Bob produces, the more jam Jon is able to produce; that is, there is

Money, nature, development and function of money.

nature, development and function of money.

Problems of measuring productivity in actual work situations, Discuss the p...

Discuss the problems of measuring productivity in actual work situations. Also how productivity might be measured for each of the following industries? Finance and insurance (examp

Bonds are more attractive to investors, Briefly explain if you agree with t...

Briefly explain if you agree with the following statement: If interest rates rise, bonds become more attractive to investors, so bond prices rise. Therefore, when the interest rat

Difference between opportunity and accounting cost, Provide an explanation ...

Provide an explanation of difference between opportunity and accounting cost, and accounting and economic profits. Then, please provide an example from your experience where opport

international trade, Solution of the following question The Nigerian presi...

Solution of the following question The Nigerian president goodluck jonathan has just returned from Germany and the following economic transactions were obtained thus,use the data t

Explain the money market diagram, Q. Explain the Money market diagram? ...

Q. Explain the Money market diagram? Let's begin by studying the money market when GDP is given. When Y is given, MD will only rely (negatively) on R and we can draw a figure w

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