Tutorial Exercise 1

Tutorial Exercise 1 - Introduction to Macroeconomics...

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1 Introduction to Macroeconomics (ECON1002 C/D) School of Economics & Finance, University of Hong Kong Second Semester 2011-2012 Tutorial Exercise 1 (9, 10, 13 February): Please be well prepared to answer the following questions. 1. Intelligence Incorporated produces 100 computer chips and sells them for $200 each to Bell Computers. Using the chips and other labor and materials, Bell produces 100 personal computers. Bell sells the computers, bundled with software that Bell licenses from Macrosoft at $50 per computers, to PC Charlie’s for $800 each. PC Charlie’s sells the computers to the public for $1000 each. Calculate the total contribution for GDP using the value-added method. Do you get the same answer by summing up the market values of final goods and services? 2. Which components of GDP (if any) would each of the following transactions affect? Explain. (a) Your buy a pizza. (b) Aunt Jane buys a new house. (c) A car company sells a Toyota Prius from its inventory.
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This note was uploaded on 03/13/2012 for the course ECON 1001 taught by Professor S.c during the Fall '10 term at HKU.

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Tutorial Exercise 1 - Introduction to Macroeconomics...

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