Problem 4.(14 points) Consider an economy with three firms: . Fisherman . A beer

Question

Problem 4.(14 points) Consider an economy with three firms: . Fisherman . A beer brewery . A restaurant In the year 2016: The Fisherman caught fish worth $30, of which $20 was sold to the Restaurant and $10 was sold to consumers . The Brewery brewed beer worth $30 and sold everything to the Restaurant The Restaurant served meals to consumers worth $100. Fill in the table below and then compute GDP using two methods: 1) summing up all final goods production and 2) the Value Added method. Total Output Intermediate Value added goods used by the firnm Firm Fishermarn $30 $30 $100 Restaurant

Explanation / Answer

Answer : Intermediate goods are those which used in the production of the another good.

Value added means that calculated GDP on the basis of all final goods and services.

Firm Total output Intermediate goods used by the firm Value added Fisherman $30 $20 $10 Brewery $30 $30 - Restaurant $100 - $100

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.