Tutorial_1_Introduction - IBM uses these components and its...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
ECMA06H3S Tutorial #1 Notes Gross Domestic Product Review GDP Calculation Methods: 1) The expenditure approach Use by the government 2) The income approach 3) The value added approach Expenditure Approach Income Approach Value Added Approach Example of Value Added Approach: (From 2009 Midterm) Question 1-2: Suppose that an economy consists of only 4 firms: Intel, Samsung, IBM, and Sleeman’s. Suppose that this year Intel manufactures and sells $200 million worth of computer chips to IBM so that IBM could use these chips in the manufacturing of its computer systems. Similarly, Samsung produces and sells $300 million worth of computer monitors to IBM, and IBM again uses them in its computer systems.
Background image of page 1

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

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

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

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: IBM uses these components and its own to manufacture and sell $1200 million worth of computer systems (for final use). Sleemans, on the other hand, produces and sells $1800 million worth of beer for consumption. Assume, furthermore, that Sleemans does not buy any new computer systems during the year. Question 1 GDP increases by (in terms of millions): A) $1200 B) $3500 C) $1700 D) $3200 E) $3000 F) $1000 G) $2000 H) $2100 I) $2300 J) $1800 Question 2 IBMs value added is (in terms of millions): A) $900 B) $200 C) $300 D) $700 E) $1200 F) $500 G) $1700 H) $600 I) $1000 J) none of the above. 1 ECMA06 Tutorial 1 2 3 ECMA06 Tutorial 1 4...
View Full Document

Page1 / 4

Tutorial_1_Introduction - IBM uses these components and its...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online