#GDP, Macroeconomics

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.
Posted Date: 10/11/2012 9:57:45 AM | Location : United States







Related Discussions:- #GDP, Assignment Help, Ask Question on #GDP, Get Answer, Expert's Help, #GDP Discussions

Write discussion on #GDP
Your posts are moderated
Related Questions
what do we mean when we say export are exogenous and import are endogeneos?

how can the central bank influence the size of the multiplier

Construct loanable funds market in the context of an open economy assuming that the home country is a small open economy. Discuss the effect of an enhance in the govt. expendi

The employment-population ratio gives the number of people: Select one: a. working. b. working as a percentage of the number of people available to work. c. in the labor force.

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

briefly explain any five uses of national income statistics

Question 1: Consider a closed economy with no government sector in which consumption (C) is related to income (Y) by the equation: C = A + bY (a) What is the marginal pr

What are the 4 scarce, factors of production and what is a description of each of them. What are the costs to these resources?

Q. Show the analysis of cross model? We can divide our analysis of cross model into three sections:  Aggregate demand. Aggregate demand is a major component of cross mo

it has been argued that economic development of developing countries has been held back by a persistent fall in the terms of trade of developing countries over the long run