There are three firms in an economy: A, B, and C. Firm A buys $350 worth of goods from firm B and $150 worth of goods from firm C. and produces 250 units of output, which it sells at $4 per unit. Firm B buys $200 worth of goods from firm A and nothing from firm C, and produces 250 units of output, which it sells at $6 per unit. Firm C buys $300 worth of goods from firm A and $100 worth of goods from firm B. It produces output worth $800. All other products are sold to consumers.

There are three firms in an economy: A, B, and C. Firm A buys $350 worth of goods from firm B and $150 worth of goods from firm C. and produces 250 units of output, which it sells at $4 per unit. Firm B buys $200 worth of goods from firm A and nothing from firm C, and produces 250 units of output, which it sells at $6 per unit. Firm C buys $300 worth of goods from firm A and $100 worth of goods from firm B. It produces output worth $800. All other products are sold to consumers.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please see attachment and type out the correct answer ASAP with proper explanation of all the sub question given.will give you thumbs up only for the correct answer. Thank you

There are three firms in an economy: A, B, and C. Firm A buys $350 worth of goods from firm B and $150 worth of goods from firm C,
and produces 250 units of output, which it sells at $4 per unit. Firm B buys $200 worth of goods from firm A and nothing from firm C,
and produces 250 units of output, which it sells at $6 per unit. Firm C buys $300 worth of goods from firm A and $100 worth of goods
from firm B. It produces output worth $800. All other products are sold to consumers.
Instructions: Round your responses to the nearest whole number.
a. Calculate GDP.
b. If a value-added tax (a tax on the total value added by each firm) of 15 percent is introduced, how much revenue will the government
get?
$
c. How much would government get if it introduced an income tax of 15 percent?
d. How much would government get if it introduced a sales tax of 15 percent on output?

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