What is the value of gdp in economy

Assignment Help Microeconomics
Reference no: EM13859834

An economy has two firms. Households own all of the labor services and all of the capital, which they rent out to the firms. Firm A produces sugar using labor services worth $10 and capital services worth $20.  It sells $15 worth of sugar to households and $15 of sugar to firm B; a bakery. The bakery produces cakes worth $60 that it sells directly to households. Households earn $30 in wages from Firm A and B combined,

A. What is the value of GDP in this economy?

B. What is the value added by firm A?

c. What is the value added by firm B?

D. How much does the household earn in profit from firms A and B combined?

E. What is total value of intermediate goods and produced in the economy?

 

 

Reference no: EM13859834

Questions Cloud

Various parts of the circular flow diagram representing : Explain briefly the various parts of the circular flow diagram representing the interactions between households and firms in a simple economy.
Draw a cash flow timeline : a. Draw a cash flow timeline for 1 day's sales under existing credit policy b. What is the value effect (ΔZ) of this decision on 1 day's sales?
Real money demand is greater than the real money supply : If the real money demand is greater than the real money supply, interest rates must rise to reach equilibrium in the money market as institutions sell bonds to obtain more money. The federal government’s control of the money supply, which influences ..
What is nat and what is it used for? : What is NAT and what is it used for?
What is the value of gdp in economy : An economy has two firms. Households own all of the labor services and all of the capital, which they rent out to the firms. Firm A produces sugar using labor services worth $10 and capital services worth $20.  It sells $15 worth of sugar to househol..
Utility function-indifference curve is tangent : Romans utility function os U(x,y)=6xy. The prices of goods x and y are $12 and $15. The indifference curve is tangent to his budget constraint, where he is consuming 20 units of good x. How many units of good y must he be consuming?
Bank evaluation process : Assume that you are nearing graduation and have applied for a job with a local bank. The bank's evaluation process requires you to take an examination that covers several financial analysis techniques.
Determining target market and positioning of your product : Prepare a 350- to 700-word summary with a focus on determining the target market and positioning of your product or service
What the term spontaneous order means : What are the advantages of E-Commerce? Name all the specific cyber issues that have necessitated new laws? Explain what the term “spontaneous order” means? Name all of the factors that, according to Lawrence Lessig, govern both real space and cybersp..

Reviews

Write a Review

Microeconomics Questions & Answers

  Difference between a public and a private good

In a market economy there are two types of goods being produced: public and private goods. After reading the assigned chapters, what is the difference between a public and a private good?

  Determine the equations for afc

Determine the equations for AFC (average xed cost), AVC (average variable cost), ATC (average total cost), and MC (marginal cost). Graphically illustrate the relationships to one another. EMBA 504: Strategic Competitive Analysis

  Evaluate how the audit process monitors

Evaluate how the audit process monitors the compliance management structure to ensure its purpose is intact - discuss how you would apply it to the Bullock Studios case study.

  Write down the difference between contractionary and

what is the difference between contractionary and expansionary fiscal policies? which is more appropriate today?

  Describe johnson amp johnson current capital structurehas

describe johnson amp johnson current capital structurehas the capital structure changed significantly over time?is this

  What is the composition of gdp by percentage

What is Country A's GDP, what is the composition of GDP by percentage, what is the GDP per capita and how does this relate to Keynesian economics?

  What is the a supply curve

4.The opportunity cost of producing one more hot dog is $1.00. The price of a hot dog is $1.50. The producer surplus from selling one more hot dog is,The demand curve for hamburgers is the same as the,Markets may not achieve an efficient allocation..

  Find the level of labour supply

Let the utility function be U = log(x) - l, where l is labour and x is consumption. Find the level of labour supply if the wage rate w=10.

  What is monthly payment-take to pay off mortgage

Skyscraper City has a subway system, for which a one-way fare is $1.50. There is pressure on the mayor to reduce the fare by one-third, to $1.00. The mayor is dismayed, thinking that this will mean Skyscraper City is losing one-third of its revenue f..

  Analysis of two different designs for a safety closure

Julia must select between two different designs for preventing closure, which will be in use indefinitely. Model 1st has a life of 3-years and cost of $8000, and maintenance of $1000 every year.

  Examine the private enterprise systems

Examine the private enterprise systems, drivers of change on the system, ethical and social responsibilities of business, and the requirements for success in today's business environment.

  Average fixed cost and marginal cost schedules

Problem-solving question: Use the following data on a firm’s total cost schedules to compute its average variable cost, average total cost, average fixed cost and marginal cost schedules.

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