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Macroeconomics 13th Edition by William Baumol ,Alan Blinder
Edition 13ISBN: 978-1305280601Macroeconomics 13th Edition by William Baumol ,Alan Blinder
Edition 13ISBN: 978-1305280601 Exercise 9
The following outline provides a complete description of all economic activity in Trivialand for 2014. Draw up versions of Tables 3 and 4 for Trivialand showing GDP computed in two different ways. 10
i. There are thousands of farmers but only two big business firms in Trivialand: Specific Motors (an auto company) and Super Duper (a chain of food markets). There is no government and no depreciation.
ii. Specific Motors produceD₁,000 small cars, which it sold at $6,000 each, anD₁00 trucks, which it sold at $8,000 each. Consumers bought 800 of the cars, and the remaining 200 cars were exported to the United States. Super Duper bought all the trucks.
iii. Sales at Super Duper markets amounted to $14 million, all of it sold to consumers.
iv. All farmers in Trivialand are self-employed and sell all of their wares to Super Duper.
v. The costs incurred by all of Trivialand's businesses were as follows:
i. There are thousands of farmers but only two big business firms in Trivialand: Specific Motors (an auto company) and Super Duper (a chain of food markets). There is no government and no depreciation.
ii. Specific Motors produceD₁,000 small cars, which it sold at $6,000 each, anD₁00 trucks, which it sold at $8,000 each. Consumers bought 800 of the cars, and the remaining 200 cars were exported to the United States. Super Duper bought all the trucks.
iii. Sales at Super Duper markets amounted to $14 million, all of it sold to consumers.
iv. All farmers in Trivialand are self-employed and sell all of their wares to Super Duper.
v. The costs incurred by all of Trivialand's businesses were as follows:
Explanation
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Macroeconomics 13th Edition by William Baumol ,Alan Blinder
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