# PS 2 - Econ 101 Problem Set 2 Jinmao Xu 4715033 TA Witham...

This preview shows pages 1–2. Sign up to view the full content.

Econ 101 Jinmao Xu Problem Set 2 4715033 TA: Witham Problem 1 Part 1. Compute GDP by production approach: For the phone company: All the services that the company produced is \$14,000 ; For the car factory: All the goods that the car factory produced is 15×\$2,000 =\$30,000 ; &The intermediate good is \$1,000 (spends on local and long distance services to the phone company) For the government: The police officer produced his effort to the community(work for the government), and get paid for \$1,000 . GDP (Production Approach) = \$14,000 + (\$30,000 - \$1,000) + \$1,000 = \$44,000 . Compute GDP by expenditure approach: For the phone company: The phone company produced \$14,000 services to the community, and \$1,000 was consumed by the car factory, so the remaining \$13,000 was consumed by consumers. The investment for the phone company \$2,000 in which the company spent on a car used for repair service. For the car factory:

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 08/08/2011 for the course ECON 101 taught by Professor Dumbass during the Spring '08 term at UCSB.

### Page1 / 2

PS 2 - Econ 101 Problem Set 2 Jinmao Xu 4715033 TA Witham...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online