Question: Assume an economy where there are two producers a wheat
Assume an economy where there are two producers: a wheat producer and a bread producer. In a given year, the wheat producer grows 30 million bushels of wheat of which 25 million bushels are sold to the bread producer at $3 per bushel, and 5 million bushels are stored by the wheat producer to use as seed for next year's crop. The bread producer produces and sells 100 million loaves of bread to consumers for $3.50 per loaf. Determine GDP in this economy during this year using the product and expenditure approaches.
Relevant QuestionsAssume an economy with a coal producer, a steel producer, and some consumers (there is no government). In a given year, the coal producer produces 15 million tons of coal and sells it for $5 per ton. The coal producer pays ...In some countries, price controls exist on some goods, which set maximum prices at which these goods can be sold. Indeed, the United States experienced a period of wage and price controls when the Nixon administration ...Suppose that the unemployment rate is 5%, the total working-age population is 100 million, and the number of unemployed is 2.5 million. Determine: (i) the participation rate; (ii) the labor force; (iii) the number of ...Consider the consumer choice example in this chapter, where consumption and leisure are perfect complements. Assume that the consumer always desires a consumption bundle where the quantities of consumption and leisure are ...Suppose that the government subsidizes employment. That is, the government pays the firm s units of consumption goods for each unit of labor that the firm hires. Determine the effect of the subsidy on the firm’s demand for ...
Post your question