In a hypothetical economy, coal is sold to electricity producers at a rate of 100 cents per kW (i.e. the amount of electricity the coal can produce). Electricity is produced by power producers and sold to distributors at a rate of 150 cents per kW. These distributors then well the electricity to final consumers at a rate of 200 cents per kW. There were 50 million kW were produced in 2021. Assuming no other good was produced in this economy it can be concluded in 2021 that: a) The GDP in this economy according to the production method is R 50 million b) The GDP in this economy according to the expenditure method is R 200 million c) The GDP in this economy according to the value added method is R 50 million d) The GDP in this economy according to the value added method is R 100 million

In a hypothetical economy, coal is sold to electricity producers at a rate of 100 cents per kW (i.e. the amount of electricity the coal can produce). Electricity is produced by power producers and sold to distributors at a rate of 150 cents per kW. These distributors then well the electricity to final consumers at a rate of 200 cents per kW. There were 50 million kW were produced in 2021. Assuming no other good was produced in this economy it can be concluded in 2021 that: a) The GDP in this economy according to the production method is R 50 million b) The GDP in this economy according to the expenditure method is R 200 million c) The GDP in this economy according to the value added method is R 50 million d) The GDP in this economy according to the value added method is R 100 million

MACROECONOMICS FOR TODAY

10th Edition

ISBN:9781337613057

Author:Tucker

Publisher:Tucker

Chapter1: Introducing The Economic Way Of Thinking

Section: Chapter Questions

Problem 10SQ

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