Consider the economy of "Econland" 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. .
Consider the economy of "Econland" 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. .
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![1. Consider the economy of "Econland" 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. .
• Cacao Beans Inc.
o Wages paid to employees
o Taxes paid to federal government
o Revenue received from selling cacao
$6,000
$4,500
beans
• Cacao beans sold to
consumers
S16,500
• Cacao beans sold to Chocolate
Согр.
• Chocolate Corp.
o Wages paid to employees
o Taxes paid to federal government
o Beans purchased from Cacao Beans
Inc. $23,500
o Revenue received from selling chocolate
S23,500
S16,500
$6,500
bars
$25,000
o Revenue received from hot chocolate
drinks
$45,000
a) Calculate GDP of Econland according to the product (value
added) approach
b) Calculate GDP of Econland according to the expenditure
approach
c) Calculate GDP of Econland according to the income approach](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F82822d36-839b-45cb-aa91-8fb7951a387e%2F84f69623-ef9f-4cf0-842a-1b195981145c%2Fr5xxzw6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:1. Consider the economy of "Econland" 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. .
• Cacao Beans Inc.
o Wages paid to employees
o Taxes paid to federal government
o Revenue received from selling cacao
$6,000
$4,500
beans
• Cacao beans sold to
consumers
S16,500
• Cacao beans sold to Chocolate
Согр.
• Chocolate Corp.
o Wages paid to employees
o Taxes paid to federal government
o Beans purchased from Cacao Beans
Inc. $23,500
o Revenue received from selling chocolate
S23,500
S16,500
$6,500
bars
$25,000
o Revenue received from hot chocolate
drinks
$45,000
a) Calculate GDP of Econland according to the product (value
added) approach
b) Calculate GDP of Econland according to the expenditure
approach
c) Calculate GDP of Econland according to the income approach
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