Consider an economy with two firms and a government. Firm 1 produces 10000 units of good X, which it sells for $20 per unit. It uses this revenue to pay $140000 in wages, $10000 in taxes, and $10000 in interest on a loan, with the rest as profits. Firm 1 sells some of its output to consumers, and some to Firm 2 as an intermediate good in their production process. Firm 2 uses good X as an input into its manufacturing process. It buys 8000 units of good X and uses them to create 1000 units of good Y, which it sells for $400 per unit. It pays $200000 in wages and $20000 in taxes, with the rest as profits. The government takes in taxes from only these two firms, and uses it to pay wages to provide government services, for instance national defense. Calculate GDP using the three different methods. Of course, you'll arrive at the same answer; however, indicate clearly what values you're using in each case to arrive at the final answer, so as to illustrate you know what is included in each method of calculating GDP. 1)Income approach: 2)Expenditure approach: 3)Product(value-added) approach: b) A foreign competitor enters the market for goodX. Consumers and firm 2 still consume the same level of good X; however, Firm 1 now only produces 8000 units of good X, with the foreign firm selling 2000 units of good X (1000 to consumers and 1000 to Firm 2). Firm 1 pays the same wages and taxes as it did when it sold 10 000 units of good X. Re-calculate GDP using your favorite method.

In 2013, it was estimated that the total value of all corn-production subsidies in the United States totaled about $4.8 billion. The population of the United States was approximately 315 million people that year. a. On average, how much did corn subsidies cost per person in the United States in 2013? (Hint: A billion is a 1 followed by nine zeros. A million is a 1 followed by six zeros.) b. If each person in the United States is only willing to spend $0.50 to support efforts to overturn the corn subsidy, and if antisubsidy advocates can only raise funds from 10 percent of the population, how much money will they be able to raise for their lobbying efforts? c. If the recipients of corn subsidies donate just 1 percent of the total amount that they receive in subsidies, how much could they raise to support lobbying efforts to continue the corn subsidy? d. By how many dollars does the amount raised by the recipients of the corn subsidy exceed the amount raised by the opponents of the corn…

1) Many analysts have argued that the federal government should stop spending money on programs such as agricultural price supports and should redirect that spending to such things as improvements in the nation's roads and bridges. Construct an economic argument that supports this proposed change in policy.

In a market economy Group of answer choices   All the other answers are true for the market economy.   consumers buy what makes them better off.   those goods and services that people will buy, will be produced.   producers and sellers produce/sell goods and services that are profitable to produce/sell.