Points Awarded78.00Points Missed22.00Percentage78.0%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 this economy, 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’s sells 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:$2,000,000Rent on land (including apricot trees)300,000Wages to employees1,200,000
Taxes200,000Darryl's profit from selling dried apricots is:A) $100,000B) $150,000C) $300,000D) $310,000E) none of the above are correctFeedback: 2,300,000-1,200,000-250,000-600,000-100,000 = 150,000Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):B2.Fannie’s profit from selling fresh apricots is:Table for Individual Question FeedbackPoints Earned:3.0/3.0Correct Answer(s):C3.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.
*hint: get total profit by adding your answers for #1 and #2!Table for Individual Question FeedbackPoints 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.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 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?
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