Homework_2 - Points Awarded 88.00 Points Missed 12.00 Percentage 88.0 1 Part 1 32 questions at 3 points each for a total of 96 points FOR

Homework_2 - Points Awarded 88.00 Points Missed 12.00...

This preview shows page 1 - 5 out of 17 pages.

Points Awarded88.00Points Missed12.00Percentage88.0%1.Part 1: 32 questions at 3 points each for a total of 96 pointsFOR FILL-IN-THE-BLANK questions: If your answer is in decimal form, round to 2 decimal places. For example, if your answer is .412, enter it into the fill-in-the-blank as .41, or if your answer is 1.415, enter it into the fill-in-the-blank as 1.42. If there are no decimals in your answer, you will simply enter the number; so if your answer is 2, enter 2 with no decimals. Do not enter any extra spaces, do not enter commas or $ or % symbols.Use the information below to answer questions 1-6Consider an economy that produces only two goods: fresh apricots and dried apricots. In thiseconomy, the technology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in the sun. Fannie’s Farms is the only company that grows fresh apricots, while Darryl’s Dried Victuals is the only producer of dried apricots. Fannie’ssells some of its apricots directly to consumers for consumption. The relevant revenue and cost information for each of the two firms in the economy is given below:Darryl's Dried VictualsRevenue from selling dried apricots:$2,300,000Cost of buying fresh apricots from Fannie’s:1,200,000Interest on funds borrowed to buy drying racks:250,000Wages paid to employees600,000Taxes100,000Fannie’s FarmsRevenue from selling fresh apricots:$2,000,000
Rent on land (including apricot trees)300,000Wages to employees1,200,000Taxes200,000Darryl's profit from selling dried apricots is:Feedback: 2,300,000-1,200,000-250,000-600,000-100,000 = 150,000Points Earned:3.0/3.02.Fannie’s profit from selling fresh apricots is:C
Answer(s):3.Use the income approach to calculate nominal GDP. Fill in the blanks in the table below. Enter numbers with no commas, no dollar signs and no decimals. For example, if your answer is $12,000 you would enter 12000 into the appropriate box.a. Total wagesb. Interestc. Rentd.Total profit*e. Total taxesNominal GDP=(a+b+c+d+e)*hint: get total profit by adding your answers for #1 and #2!Now let’s use the expenditure approach to calculate nominal GDP. So here we will add up all consumer spending on FINAL goods in this economy. Remember that the final goods in this economy are fresh apricots and also dried apricots. We have to be careful not to double count here though because some of the fresh apricots produced by Fannie are used by 18000002500003000004500003000003100000Points Earned:3.0/3.0Correct Answer(s):Box 1: 1800000;Box 2: 250000;Box 3: 300000;Box 4: 450000;Box 5: 300000;Box 6: 31000004.
Darryl to make dried apricots.So first we find out how much money consumers spent on each of the final goods:How much money was spent by consumers on Fannie’s fresh apricots?

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture