A sheep ranch produces \( \$ 40 \) worth of wool. A suit manufacturer produces \( \$ 60 \) worth of suits. A retail outlet sells a suit to a customer for \( \$ 200 \). The change in GDP would be: \$200. \( \$ 180 \). \$270. zero, because wool suits are worthless.
Added by David M.
Close
Step 1
- The final good is the suit sold to the customer for \$200. Show moreā¦
Show all steps
Your feedback will help us improve your experience
Vysakh M and 66 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
5. A rancher raises sheep. Once a year he shears them and sells the raw wool to a processor who cleans it and spins it into yarn. The yarn is then sold to a knitting mill, which produces and sells sweaters. In calculating GDP we would count: A. the raw wool, the yarn and the sweaters. B. only the yarn and the sweaters. C. only the sweaters. D. only the raw wool and the yarn.
Hubert A.
Complete the following table. Circle the value of GDP in the column "value of sales". Answer 1-3 using this table. Firm | | Value of Sales | Value added --- | --- | --- | --- A | Sheep Ranch | 240 | B | Wool Processor | 360 | C | Suit Manufacture | 440 | D | Wholesaler | 540 | E | Retail Outlet | 700 | Total | | 2280 | 1. What is the value of GDP? 2. What is the value of GDP using the value added method (show your calculations). 3. GDP and value added should not be the same? (A) True (B) False GDP percentage question. U.S. National-Income aggregates 2003 for the country CRC. Complete the following table. Expenditure Categories | Dollar amounts | Percentage of total output --- | --- | --- Consumption goods & services | 268 | Investment goods | 64 | Exports | 48 | Imports | 52 | Federal government purchases | 18 | State and Local government purchases | 54 | 4. Which category has the largest percentage share of total output? _______ What is its share? _______
Shu N.
Dan spent $200 on a new computer monitor that he purchased from a local store. The local store had bought it from an area wholesaler for $150. The area wholesaler had bought it from the manufacturer for $85. The manufacturer bought raw materials that cost $10 to produce the monitor. For the raw-materials provider, the $10 was pure profit. This monitor also had cost the manufacturer $65 in wages, the area wholesaler $20 in wages, and the local store $15 in wages. Calculate how much GDP changed as a result of this purchase using each of the three ways to measure GDP. a. First, calculate the change in GDP by adding up every dollar spent on final goods. $200 b. Next, calculate the change in GDP by adding up every dollar's worth of output produced by detailing the value added at every stage of production. $200 c. Finally, calculate the change in GDP by adding up every dollar of income earned. $110
Reniah C.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for APĀ® Courses
Economics
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD
