Consider an economy with two firms. Firm 1 produces iron, employing workers and using machines to produce the iron. It sells the iron for K1500 to Firm 2, which produces roofing sheets. Firm 1 pays its workers K1000, leaving K500 in profit to the firm. Firm 2 buys the iron and uses it, together with workers and machines, to produce roofing sheets. Revenues from car sales are K3000. Of the K3000, K1500 goes to pay for iron and K750 goes to workers in the firm, leaving K750 in profit to the firm. Required What is the final value of goods produced?  What is the total value added and What is total income?  Discuss three complications in computing national income.

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