PSU ECON 104 Homework 2 - Points Awarded 100.00 Points...

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Points Awarded100.00Points Missed0.00Percentage100%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. Forexample, if your answer is .412, enter it into the fill-in-the-blank as .41, or if your answer is 1.415, enter it intothe fill-in-the-blank as 1.42. If there are no decimals in your answer, you will simply enter the number; so if youranswer 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 this economy, thetechnology of producing dried apricots is to place fresh apricots on special racks and allow them to dry in thesun.Fannie’s Farmsis the only company that grows fresh apricots, whileDarryl’s Dried Victualsis the onlyproducer of dried apricots. Fannie’s sells some of its apricots directly to consumers for consumption. Therelevant 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 dryingracks:250,000Wages paid to employees600,000Taxes100,000Fannie’s FarmsRevenue from selling fresh apricots:$2,000,000Rent on land (including apricot trees)300,000Wages to employees1,200,000Taxes200,000
Darryl's profit from selling dried apricots is:Feedback:2,300,000-1,200,000-250,000-600,000-100,000 = 150,000Table for Individual Question FeedbackPoints Earned:3.0/3.0
2.Fannie’s profit from selling fresh apricots is:Feedback:2,000,000-300,000-1,200,000-200,000= 300,000Table for Individual Question FeedbackPoints Earned:3.0/3.0
3.Use theincome approachto calculate nominal GDP. Fill in the blanks in the table below.Enter numbers withno commas, no dollar signs and no decimals. For example, if your answer is $12,000 you would enter12000 into the appropriate box.a. Total wages1800000b. Interest250000c. Rent300000d.Total profit*450000
*hint: get total profit by adding your answers for #1 and #2!Table for Individual Question FeedbackPoints Earned:3.0/3.0

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Term
Fall
Professor
staff
Tags
Macroeconomics, Inflation, Darryl, Correct Answer, Individual Question, FANNIE

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