PointsAwarded88.00Points 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 decimalplaces. For example, if your answer is .412, enter it into the fill-in-the-blank as .41, or if youranswer is 1.415, enter it into the fill-in-the-blank as 1.42. If there are no decimals in youranswer, 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 specialracks and allow them to dry in the sun.Fannie’s Farmsis the only company that growsfresh apricots, whileDarryl’s Dried Victualsis the only producer of dried apricots. Fannie’ssells some of its apricots directly to consumers for consumption. The relevant revenue andcost 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 fromFannie’s:1,200,000Interest on funds borrowed to buydrying 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:
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2.Fannie’s profit from selling fresh apricots is:C
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Answer(s):3.Use theincome approachto calculate nominal GDP. Fill in the blanks in the tablebelow.Enter numbers with no commas, no dollar signs and no decimals. Forexample, if your answer is $12,000 you would enter 12000 into the appropriatebox.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 theexpenditure approachto calculate nominal GDP. So here we will add upall consumer spending on FINAL goods in this economy. Remember that the final goods inthis economy are fresh apricots and also dried apricots. We have to be careful not to doublecount here though because some of the fresh apricots produced by Fannie are used by18000002500003000004500003000003100000Points Earned:3.0/3.0CorrectAnswer(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 oneach of the final goods:How much money was spent by consumers on Fannie’s fresh apricots?
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