1. Consider the economy of Economica with only two companies. Cacao Beans Inc. is a farmthat grows cacao beans. In addition, the Chocolate Corp. produces chocolate bars and hotchocolate drinks. Consider the following information and answer the questions below. Makesure to show all calculations to receive full credit! Just writing down the final answer willresult into zero points!Cacao Beans Inc.●o Wages paid to employeesoOTaxes paid to federal governmentRevenue received from selling cacao beansCacao beans sold to consumersCacao beans sold to Chocolate Corp.Chocolate Corp.■o Wages paid to employeesOTaxes paid to federal governmentBeans purchased from Cacao Beans Inc.O Revenue received from selling chocolate barsO Revenue received from hot chocolate drinksOIa. Calculate GDP of Economica according to the product (value added) approach$6,000$4,500$16,500$23,500$16,500$6,500$23,500$25,000$45,000 b. Calculate GDP of Economica according to the expenditure approachc. Calculate GDP of Economica according to the income approach

A measure of a country's economic performance is its GDP. It displays the total cost of all finished…

Answered: b. Calculate GDP of Economica according…

b. Calculate GDP of Economica according to the expenditure approach c. Calculate GDP of Economica according to the income approach

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Which of the following is not a method of calculating National Income? [A] Income method [B]…

A: National income accounting is a methodology for determining the aggregate economic activity of a…

Q: Final goods and services are counted in GDP Select one: production and A transformed in, are not B.…

A: As there are multiple different questions, answer is provided to the first question. 1) "Gross…

Q: c. There are two methods to compute national income: (1) add up total and (2) add up total domestic…

A: Macroeconomics examines the working, composition, and dynamics of an economy. To comprehend and…

Q: 2. What are the main components of measuring GDP with what is demanded?

A: In an economy, gross domestic product is used as the measuring tool to determine the income or…

Q: How does the value of production relate to expenditure and income? The value of production ____. A.…

A: Production in economics is the process of creating things or services from inputs, both tangible and…

Q: After reading a report that says that around 70% of U.S. GDP is consumption, your friend Alex…

A: GDP or the Gross Domestic Product is the monetory value of all the goods and services that is…

Q: 4. A(n) shows the relationship between national income (GDP) and total spending a) balance sheet b)…

A: A consumption work shows the connection between genuine GDP (or public pay) and consumption levels,…

Q: The three ways of measuring Gross Domestic Product are the __________ approach, the ________…

A: Gross Domestic Product (GDP) is a fundamental economic statistic that calculates the total monetary…

Q: What is the value of real GDP if the change in inventory is 50? Planned Government Net Exports…

A: The change in inventories is a very small part as a component of GDP but still, it's important…

Q: Transfer payments are not included in GDP calculation because these are OA. no different from income…

A: A transfer payment is a payment made by the government or another entity to an individual or…

Q: Consumption expenditure is $410 and the income is $820 Calculate APC

A: According to the above given question the values given are:- Consumption expenditure = $410 Income…

Q: List the four components of GDP .

A: Gross domestic product (GDP): - GDP is the market value of all final goods and services produced in…

Q: In a simple economy, calculate gross domestic product using the following figures. (Not all…

A: Gross Domestic product (GDP) is the value of final goods and services produced in the domestic…

Q: Consider the expenditure approach to the measurement of GDP. For each of the following situations,…

A: a)Transfer is not included in expenditire approach.Therefore this would not affect GDP.

Q: The agency responsible for compiling the National Income Product Accounts for the U.S. economy is…

A: In the United States, different authorities are built ot established to deal with specfiic situation…

Q: Define Gross domestic product (GDP) and list down the four components of GDP using the expenditure…

A: (1) The final value of S (services )and g (goods ) produced in an economy at a specified time period…

Q: The three ways of measuring Gross Domestic Product are the __________ approach, the ________…

A: The question is asking to identify the three approaches used to measure Gross Domestic Product…

Q: 1. Define Gross Domestic Product (GDP) and discuss how it is used as a measure of living standard…

A: Since you have posted multiple questions, we will provide the solution to only the first question as…

Q: Suppose that an economy consists of only two individuals. Trevor has $1310 available to spend on…

A: The gross domestic product(GDP) of an economy is defined as the amount of final commodities(goods…

Q: Use the following data. Using the expenditures approach, which of the following is the correct…

A: Gross domestic product (GDP), or value added refers to the value of items and services produced by…

Question

1. Consider the economy of Economica with only two companies. Cacao Beans Inc. is a farm
that grows cacao beans. In addition, the Chocolate Corp. produces chocolate bars and hot
chocolate drinks. Consider the following information and answer the questions below. Make
sure to show all calculations to receive full credit! Just writing down the final answer will
result into zero points!
Cacao Beans Inc.
●
o Wages paid to employees
o
O
Taxes paid to federal government
Revenue received from selling cacao beans
Cacao beans sold to consumers
Cacao beans sold to Chocolate Corp.
Chocolate Corp.
■
o Wages paid to employees
O
Taxes paid to federal government
Beans purchased from Cacao Beans Inc.
O Revenue received from selling chocolate bars
O Revenue received from hot chocolate drinks
O
I
a. Calculate GDP of Economica according to the product (value added) approach
$6,000
$4,500
$16,500
$23,500
$16,500
$6,500
$23,500
$25,000
$45,000

b. Calculate GDP of Economica according to the expenditure approach
c. Calculate GDP of Economica according to the income approach

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction

VIEW

Step 2: Product value approach

VIEW

Step 3: Expenditure approach

VIEW

Step 4: Income approach

VIEW

Solution

VIEW

Step by step

Solved in 5 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

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

What is investment? A. Expenditure on goods produced but not consumed during the period under consideration B. Expenditure on goods produced and consumed during the period under consideration C. Expenditure on goods by the government. D. Expenditure on wages
Economic the options are consumption expenditure, investment expenditure, government expenditure, net export expenditure, GDP is not affected
Why must income and expenditure measure be equal and why might they not be equal? Please use numerical examples to illustrate.
GDP 1. Calculate the values for the blanks in the shaded areas of the table below: Expenditure Components of GDP by Country, 2020 (83Son of current US dollars) Australia Canada Denmark Finland Japan India 1617 137.9 873 65.9 C E FOOD 80.0 65.3 16 0.5 L M N 195.4 97.G 1725 96.7 Household consumption Government expenditure Investments Gross fixed Investments Changes in inventories Net Exports Exports Imports A: ÄÜÄ÷ B: C: D: E: F: G: H: I: J: 746.5 K: L: 297.2 A 316.9 4.3 3152 254.7 943.7 371.8 B 377.7 (147) K 476.0 509.8 M: N: 0: P: 1,591.7 Q: R: 292.1 722.0 97.0 4973 $11.3 કીડી || T: 2.700.7 Y: 1,066.4 1,279.5 106 785.4 786.2 New Zealand UK 122.0 43.7 G 47.3 (p.s) P 46A GDP S U W Y Source: GOP by Type of Expenditure at current prices-US dollars, Retrieved 7/27/2022. National Accounts Estimates of Main Aggregates United Nations feste Division 472 Z: ZZ: 1,683.7 2. Based on the information in the table and your calculations for Question #1: Do any countries have positive net exports?…
The investment component of gross domestic product (GDP) can be broken down into two main categories fixed investment and business inventories Explain what is included in each category. Edit View Insert Format Tools Table 12pt v Paragraph w BIUA Background color
Kay three numbers 29.5, 1.2, 140.7
explain how gross product is calcu expenditure approachlates using the