The cost of each bag consisted of paying

Assignment Help Public Economics
Reference no: EM13951663

Asap..econ tutors

1. The following transactions occurred in a given year. Firm A manufactures leather using a factory valued at $20,000. Suppose Firm A produced $2,000 worth of leather and incurred the following costs: $1,000 for the salaries of workers, $100 for interest payments on a bank loan, and taxes of $200. Firm A sold all of its leather to Firm B, which is a manufacturer of luxury bags. Suppose Firm B produced four bags at a cost of $800 each.

The cost of each bag consisted of paying for $500 worth of raw materials, paying for the salaries of workers for $200, and $100 in taxes. Firm B has a factory valued at $30,000. Firm B sold to the public three of its four bags for $1,000 each. Calculate the contribution
to GDP using the following:

1) Production approach.
2) Income approach.
3) Expenditure approach

2 . Consider a two-good (A and B), two-period (year 1 and year 2) economy. In year 1, the economy produced 10 units of A at a per unit price of $1 and 5 units of B at a per unit price of $2. In year 2, the economy produced 15 units of A at a per unit price of $1 and 5 units
of B at a per unit price of $3. Calculate real GDP for years 1 and 2 using the following methods:
1) Laspeyres.
2) Paasche.
3) Fisher.
4) Calculate and compare the growth rate of real GDP using the three approaches.

3. Mankiw, page 42, question 2. A farmer grows a bushel of wheat and sells it to a miller for $1. The miller turns the wheat into flour and then sells the flour to a baker for $3. The baker uses the flour to make bread and sells the bread to an engineer for $6. The engineer eats the bread.
1) What is the value added by each person?
2) What is the bread's contribution to GDP?

4. Mankiw, page 42, question 3. Suppose a woman marries her butler. After they are married, her husband continues to wait on her as before, and she continues to support him as before (but as a husband rather than an employee).

1) How does the marriage affect GDP? (Note: That is, the butler is treated as a husband, not as an employee)
2) How should it affect GDP? (Note: That is, the butler is treated as an employee, not as a husband)

Reference no: EM13951663

Questions Cloud

Present value of an amount to be received in the future : In determining the present value of an amount to be received in the future, you receive $100,000 after ten years at a discount rate of 12 percent, how much is this worth today?
Which standard did nike violate : Does this ruling support or undermine a need for integrated market- ing communications?
Compute the present value of interest tax shields generated : Compute the present value of interest tax shields generated by these three debt issues. Consider corporate taxes only. The marginal tax rate is Tc = 0.35.a. A $1,800, one-year loan at 10% b. A four-year loan of $1,800 at 10%. Assume no principal is r..
What is allowed with a property in each category : Research the various forms of zoning in your area. What are they? What is allowed with a property in each category? What are the subtypes? How does one go about getting zoning changed
The cost of each bag consisted of paying : The following transactions occurred in a given year. Firm A manufactures leather using a factory valued at $20,000. Suppose Firm A produced $2,000 worth of leather and incurred the following costs: $1,000 for the salaries of workers, $100 for inte..
Firm pays out its excess cash as cash dividend : A firm has a market value equal to its book value. Currently, the firm has excess cash of $10,200 and other assets of $28,800. Equity is worth $39,000. The firm has 900 shares of stock outstanding and net income of $3,600. What will the stock price p..
Interest in expert consultancy to bank business : The right of Kamala to assign her interest in Expert Consultancy to Bank Business. Discuss the ways for dissolution of a partnership. What are the grounds that Raju could use to apply for dissolution of partnership by way of court's order?
How the actual company appears to managing this item : you should hand-in a research report about SONY Corporation covering: a working capital item explaining what it is and how the company manage it; how the actual company appears to managing this item?
Calculate the labor rate and labor efficiency variances : Calculate the labor rate and labor efficiency variances for paralegals assisting with business in corporations.

Reviews

Write a Review

 

Public Economics Questions & Answers

  Questions1 given a supply curve for ultrasound clinics

questions1. given a supply curve for ultrasound clinics predict how the supply curve will shift i.e. increase or

  Healthcare industry-an economic system

Estimates health care spending over time, including everything from health care goods and services to public health activities, government administration to health care investment.

  Annual index of economic freedom

Based on your reading of material from the Index of Economic Freedom, describe the relationship between economic freedom and variations in wealth among countries.

  Which policy wins a simple majority in a vs b

Let us imagine that we have three types of individuals in the electorate (each with same population), with the following preferences. Simple majority: Which policy wins a simple majority in a vs b? Which policy wins a simple majority in a vs c

  Assignment policy analysis hii want to answer these

hi ltbrgti want to answer these questions some of them need answer in equations and explain in a paragraph but some

  Explain the concept of moral hazard

Explain the concept of moral hazard. Consider whether or not it has a detrimental impact on public health initiatives.

  Understand different theories of social welfare we suppose

understand different theories of social welfare. we suppose that each individuals well-beingwelfare from any

  Find the cournot quantity and price

Denote the Cournot quantity for each rm by qa, and denote half of the monopoly quantity by qb. Suppose that the two rms interact with each other for in nite periods, and in each period they choose quantities simultaneously.

  Improve the political climate for doing business in vietnam

What, if anything, can Western countries do to help improve the political climate for doing business in Vietnam? Give specific examples.

  Costly method of environmental dispute resolution

Brute force, or warfare, is generally agreed to be the most costly form of dispute resolution and Litigation is often the least costly method of environmental dispute resolution.

  Legal and ethical principles and methodologies

Legal and ethical principles and methodologies - Principles and procedural methodologies to resolve legal and ethical problems.

  Create an ice scatterplot

Create an ICE scatterplot and explain your scatterplot.Which quadrant do most of your iterations fall into?What does this mean?

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