Assume an economy with a coal producer and a steel producer. In a given year, the coal producer produces 15 milliontons of coal, selling for $5 a ton, and pays $50 million in wages. The steel producer uses 25 million tons of coal (10 ofwhich are imported) as input to steel production, paying $5 per ton. The steel producer produces 10 million tons of steel,selling at $20 a ton. The steel producer pays $40 million in wages. All profits made by the coal and steel firm aredistributed to domestic consumers.What is GDP in this economy?O 115 millions of dollars.O 150 millions of dollars.O 275 millions of dollars.O 365 millions of dollars.

Given that The coal producer pays $50 million wages and steel producer pays $40 million wages,…

Assume an economy with a coal producer and a steel producer. In a giver ons of coal, selling for $5 a ton, and pays $50 million in wages. The steel vhich are imported) as input to steel production, paying $5 per ton. The s elling at $20 a ton. The steel producer pays $40 million in wages. All pro listributed to domestic consumers. Vhat is GDP in this economy? O 115 millions of dollars. O 150 millions of dollars.

Assume an economy with a coal producer and a steel producer. In a giver ons of coal, selling for $5 a ton, and pays $50 million in wages. The steel vhich are imported) as input to steel production, paying $5 per ton. The s elling at $20 a ton. The steel producer pays $40 million in wages. All pro listributed to domestic consumers. Vhat is GDP in this economy? O 115 millions of dollars. O 150 millions of dollars.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter18: The Markets For The Factor Of Production

Section: Chapter Questions

Problem 8PA

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Question

Assume an economy with a coal producer and a steel producer. In a given year, the coal producer produces 15 million
tons of coal, selling for $5 a ton, and pays $50 million in wages. The steel producer uses 25 million tons of coal (10 of
which are imported) as input to steel production, paying $5 per ton. The steel producer produces 10 million tons of steel,
selling at $20 a ton. The steel producer pays $40 million in wages. All profits made by the coal and steel firm are
distributed to domestic consumers.
What is GDP in this economy?
O 115 millions of dollars.
O 150 millions of dollars.
O 275 millions of dollars.
O 365 millions of dollars.

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