Question 65 Questions 61-65 are based on the following information: In the economy of Rohan, there are two firms for which domestic consumers (households) are the only shareholders: a wheat producer (Firm W) and a bread producer (Firm B). Domestic consumers own/supply all the labor services in this economy. Wheat is an input in the making of bread. In the current year, Firm W produced 60,000 bushels of wheat, sold 35,000 bushels to the bread producer at $3 per bushel, and exported 25,000 bushels at $3 per bushel. Firm W pays $50,000 in wages to domestic consumers, and $25,000 in interest (income) on a loan it borrowed from domestic consumers. Firm B produced 50,000 loaves of bread and sold all of it to the domestic consumers at $4 per loaf. Firm B paid domestic consumers $25,000 in wages, and $35,000 in interest (income) on a loan it borrowed from the domestic consumers. h addition to the 50,000 loaves of bread domestic consumers bought from Firm B, they imported and consumed 10,000 packs of beef patties at $3 per pack, and 10,000 gallon of orange juice at $4 per gallon from a foreign country. There are no government purchases and net indirect taxes, rental income, proprietors' income, and depreciation in this economy in this time period. Additionally, domestic consumers own a firm abroad that has earned a profit of $35,000 in the current year under consideration. What is the value of Gross National Product (GNP)? O $305,000 O $275,000 O $300,000 O $310,000
Question 65 Questions 61-65 are based on the following information: In the economy of Rohan, there are two firms for which domestic consumers (households) are the only shareholders: a wheat producer (Firm W) and a bread producer (Firm B). Domestic consumers own/supply all the labor services in this economy. Wheat is an input in the making of bread. In the current year, Firm W produced 60,000 bushels of wheat, sold 35,000 bushels to the bread producer at $3 per bushel, and exported 25,000 bushels at $3 per bushel. Firm W pays $50,000 in wages to domestic consumers, and $25,000 in interest (income) on a loan it borrowed from domestic consumers. Firm B produced 50,000 loaves of bread and sold all of it to the domestic consumers at $4 per loaf. Firm B paid domestic consumers $25,000 in wages, and $35,000 in interest (income) on a loan it borrowed from the domestic consumers. h addition to the 50,000 loaves of bread domestic consumers bought from Firm B, they imported and consumed 10,000 packs of beef patties at $3 per pack, and 10,000 gallon of orange juice at $4 per gallon from a foreign country. There are no government purchases and net indirect taxes, rental income, proprietors' income, and depreciation in this economy in this time period. Additionally, domestic consumers own a firm abroad that has earned a profit of $35,000 in the current year under consideration. What is the value of Gross National Product (GNP)? O $305,000 O $275,000 O $300,000 O $310,000
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Transcribed Image Text:Question 65
Questions 61-65 are based on the following information:
In the economy of Rohan, there are two firms for which domestic consumers (households) are the only
shareholders: a wheat producer (Firm W) and a bread producer (Firm B). Domestic consumers own/supply all the
labor services in this economy. Wheat is an input in the making of bread. In the current year, Firm W produced
60,000 bushels of wheat, sold 35,000 bushels to the bread producer at $3 per bushel, and exported 25,000
bushels at $3 per bushel. Firm W pays $50,000 in wages to domestic consumers, and $25,000 in interest (income)
on a loan it borrowed from domestic consumers. Firm B produced 50,000 loaves of bread and sold all of it to the
domestic consumers at $4 per loaf. Firm B paid domestic consumers $25,000 in wages, and $35,000 in interest
(income) on a loan it borrowed from the domestic consumers. h addition to the 50,000 loaves of bread domestic
consumers bought from Firm B, they imported and consumed 10,000 packs of beef patties at $3 per pack, and
10,000 gallon of orange juice at $4 per gallon from a foreign country. There are no government purchases and net
indirect taxes, rental income, proprietors' income, and depreciation in this economy in this time period. Additionally,
domestic consumers own a firm abroad that has earned a profit of $35,000 in the current year under
consideration. What is the value of Gross National Product (GNP)?
O $305,000
O $275,000
O $300,000
O $310,000
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