i need the answer quickly 3. Suppose an economy produces steel, wheat, and oil. The steel industryproduces $100,000 in revenue, spends $4,000 on oil, $10,000 on wheat, paysworkers $80,000. The wheat industry produces $150,000 in revenue, spends$20,000 on oil, $10,000 on steel, and pays workers $90,000. The oil industryproduces $200,000 in revenue, spends $40,000 on wheat, $30,000 on steel,and pays workers $100,000. There is no government. There are neitherexports nor imports, and none of the industries accumulate or deaccumulateinventories. Calculate GDP using the production and income methods.

GDP is the sum total of money value of goods and service produce in a country or economy within a…

Answered: 3. Suppose an economy produces steel,…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Production And Growth

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Suppose an economy produces steel, wheat, and oil. The steel industry produces $100,000 inrevenue, spends $4,000 on oil, $10,000 on wheat, pays workers $80,000. The wheat industryproduces $150,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers$90,000. The oil industry produces $200,000 in revenue, spends $40,000 on wheat, $30,000 onsteel, and pays workers $100,000. There is no government. There are neither exports norimports, and none of the industries accumulate or decumulate inventories. Output not sold toother sectors is sold as final goods Q A government is introduced. First consider this policy: the government taxes oilproducers $10,000, and distributes this revenue to workers. Recalculate GDP using theincome approach.
Suppose an economy produces steel, wheat, and oil. The steel industry produces $100,000 in revenue, spends $4,000 on oil, $10,000 on wheat, pays workers $80,000. The wheat industry produces $150,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $90,000. The oil industry produces $200,000 in revenue, spends $40,000 on wheat, $30,000 on steel, and pays workers $100,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or decumulate inventories. Output not sold to other sectors is sold as final goods. 1. Summarize this information in a table similar to the one in the lecture notes. 2. Calculate GDP using the production and income methods. Show your calculations. 3. A government is introduced. First consider this policy: the government taxes oil producers $10,000, and distributes this revenue to workers. Recalculate GDP using the income approach. 4. Now consider this policy: the government taxes oil producers…
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The accompanying table summarizes the activities of the three companies when all the bread and cheese produced are sold to the pizza company as inputs in the production of pizzas. Bread Cheese Pizza company company company Cost of inputs $0 $0 $50 (bread) 35 (cheese) Wages 15 20 75 Value of output 50 35 200 a. Calculate GDP as the value added in production. b. Calculate GDP as spending on final goods and services. c. Calculate GDP as factor income.
Suppose an economy produces steel, wheat, and oil. The steel industry produces $80,000 in revenue, spends $4,000 on oil, $8,000 on wheat, pays workers $60,000. The wheat industry produces $120,000 in revenue, spends $20,000 on oil, $10,000 on steel, and pays workers $80,000. The oil industry produces $180,000 in revenue, spends $20,000 on wheat, $20,000 on steel, and pays workers $80,000. There is no government. There are neither exports nor imports, and none of the industries accumulate or deaccumulate inventories. Calculate GDP using the production and income approaches.
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4. DBS Farms is a producer and retailer of farm products. DBS main products are Mangoes, Pawpaw and Pineapples. The current price of the Mangoes per Kilogram is GHS 50, the Pawpaw/Kg is GHS 80 and the Pineapple is GHS 40. This year the DBS Farms sold 10,000 kgs of Mangoes, 20,000 kgs of Pawpaw and 1 million kgs of Pineapples. In an attempt to improve revenue, the managers of the firm have decided to increase all prices by 10%. Market research has suggested that the price elasticity of demand for each product is: Mangoes: - 1.5; Pawpaw: -2.5; Pineapples: - 0.6. You have been asked to evaluate the planned price increases. a. Comment on the planned price changes. b. Would a 10% price reduction have been better for some or all of the products? 5A. Explain how microeconomics differs from macroeconomics. Which of the following headlines, taken from the various issues of The Daily Graphic, deal with microeconomics: a. "Nestle Ghana posted a 18% increase in sales" b. "GRIDCO plans to slash…
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You just got a job in Washington, D.C. You move into an apartment with some acquaintances. All your roommates, however, are slackers and do not clean up after themselves. You, on the other hand, can clean faster than each of them. You determine that you are 70 faster at dishes and 10 faster with vacuuming. All of these tasks have to be done daily. Which jobs should you assign to your roommates to get the most free time overall? Assume you have the same number of hours to devote to cleaning. Now, since you are faster, you seem to get done quicker than your roommate. What sorts of problems may this create? Can you imagine a trade- related analogy to this problem?
2. Mary's Little Lamb Ranch raises sheep. Currently Mary has 6 ranch hands, 500 acres of land and 3,000 sheep. The marginal product of adding ranch hands is 50 sheep and the marginal product of an acre of land is 5 sheep. Bob's Buffalo Ranch raises buffalo. Currently Bob has 8 ranch hands, 1,000 acres of land and 500 buffalo. The marginal product of adding ranch hands is 10 buffalo and the marginal product of an acre of land is 1 buffalo. If sheep sell for $100 per head and buffalo sell for $500 per head, is the use of land allocatively efficient (yes or if no what reallocation should occur use of ranch hands allocatively efficient (yes or if no what reallocation should is the Explain why briefly below. occur

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