MACROMODULE3 - 1 Total income can be viewed as the sum...

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1. Total income can be viewed as the sum of (All of the above) A. the dollar value of output produced since total income and total production are equal.B. payments to factor services such asland, labor,capital, and entrepreneurial activity.C. wages, rents,interest, and profits.D. All of the above
2. The simple circular flow model shows that
3.Eachyear, Johan typically does all his own landscaping and yard work. He spends $205 per year on mulch for his flowerbeds, $243 per year on flowers andplants, $54 on fertilizer for hislawn, and $247 on gasoline and lawn mower maintenance. The lawn and garden store where he obtains his mulch and fertilizer charges other customers $494 for the service of spreading that much mulch in flower beds and $48 for the service of distributing fertilizer over a yard the size ofJohan's. Paying a professional yard care service to mow his lawn would require an expenditure of $1,175 peryear, but in that case Johan would not have to buy gasoline or maintain his own lawn mower.
b. Suppose that Johan has developed allergy problems this year and will have to reduce the amount of his yard work. He can wear a mask while running his lawnmower, so he will keep mowing hisyard, but he will pay the lawn and garden center to spread mulch and distribute fertilizer. How much will all the work onJohan's yard contribute to GDP thisyear?
c. Suppose that Johan has developed allergy problems this year and will have to reduce the amount of his yard work. He can wear a mask while running his lawnmower, so he will keep mowing hisyard, but he will pay the lawn and garden center to spread mulch and distribute fertilizer. At the end of theyear, Johan realizes that his allergies are growing worse and that he willhave to arrange for all his landscaping and yard work to be done by someone else next year. How much will he contribute to GDP nextyear? $2219 $205+$243+$54+$494+$48+1175*** DON’T INCLUDED COST OF GAS AND MAINTAIN OF LAWN MOWER***

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