ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
Bartleby Related Questions Icon

Related questions

Question

Please see attachment and type out the correct answer ASAP with proper explanation of all the sub question given.will give you thumbs up only for the correct answer. Thank you

There are three firms in an economy: A, B, and C. Firm A buys $350 worth of goods from firm B and $150 worth of goods from firm C,
and produces 250 units of output, which it sells at $4 per unit. Firm B buys $200 worth of goods from firm A and nothing from firm C,
and produces 250 units of output, which it sells at $6 per unit. Firm C buys $300 worth of goods from firm A and $100 worth of goods
from firm B. It produces output worth $800. All other products are sold to consumers.
Instructions: Round your responses to the nearest whole number.
a. Calculate GDP.
b. If a value-added tax (a tax on the total value added by each firm) of 15 percent is introduced, how much revenue will the government
get?
$
c. How much would government get if it introduced an income tax of 15 percent?
d. How much would government get if it introduced a sales tax of 15 percent on output?
expand button
Transcribed Image Text:There are three firms in an economy: A, B, and C. Firm A buys $350 worth of goods from firm B and $150 worth of goods from firm C, and produces 250 units of output, which it sells at $4 per unit. Firm B buys $200 worth of goods from firm A and nothing from firm C, and produces 250 units of output, which it sells at $6 per unit. Firm C buys $300 worth of goods from firm A and $100 worth of goods from firm B. It produces output worth $800. All other products are sold to consumers. Instructions: Round your responses to the nearest whole number. a. Calculate GDP. b. If a value-added tax (a tax on the total value added by each firm) of 15 percent is introduced, how much revenue will the government get? $ c. How much would government get if it introduced an income tax of 15 percent? d. How much would government get if it introduced a sales tax of 15 percent on output?
Expert Solution
Check Mark
Knowledge Booster
Background pattern image
Economics
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education