CL1 ECO 3203

# CL1 ECO 3203 - job but would like one and 4 are in jail...

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Classwork #1 Name:________________________________ An economy has 100 people in the population and produces two goods. Company Y produces 50 units of a good. They sell half to consumers for \$20 each and half to Company X for \$15 each. It cost Company Y \$10 to produce each unit. They pay total wages of \$300 and total rent of \$200. Company X uses the 25 units from Company Y to produce 100 units of some other good. They sell 90 units to consumers for \$30 each and they do not sell the rest. It cost them \$28.75 to produce each unit. They pay total wages of \$2,000 and pay total rent of \$500. Company Y employs 20 people and Company X employs 35. In addition, 2 people are landlords, 5 are looking for a job, 10 are retired, 10 are kids, 5 are full time students, 5 are stay at home spouses, 4 are no longer looking for a
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Unformatted text preview: job but would like one, and 4 are in jail. Assume there is no government and no foreign sector. 1. There are three methods used to calculate GDP. What are they? 2. There are three types of investment. What are they? 3. Which type of investment do we have here? What is the value? 4. Find a value for consumption. 5. What is Company Y’s value added? 6. What is Company X’s value added? 7. What is the value of GDP? 8. What are total wages? 9. What is total rent? 10. What is total profit? 11. Does wages + rent + profit = GDP? 12. What is the unemployment rate? 13. What is the labor force participation rate? 14. What measure would you use to report the standard of living?...
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