Your family buys a new plasma TV (1 mark) Your neighbour buys a new house. (1 mark) All townships roads are repaved (1 mark) You buy a bottle of Italian wine. (1 mark) Toyota a new factory in Zambia. (1 mark) Consider an economy composed of only three firms: firm A, B and C. Firm A takes wood from the forest at no cost and produces planks out of this wood. Firm B, a manufacturing company, buys these planks from firm A and produces wardrobes. These wardrobes are sold to firm C, a retailer firm who in turn sales the wardrobes to consumers. Firms Quantity Price Wages Taxes Profits A 250 Planks $15 $2000 0 $1,750 B 50 Wardrobes $300 $800 $2,750 $7,700 C 50 Wardrobes $400 $500 $850 $3,650 Compute the GDP of this economy using the three (3) approaches to national income (15 marks) Bank has just hired you and you are tasked with the responsibility to rank by GDP the following countries: Country GDP (in billion US dollars) Population (in millions) 4,684 1,223.17 Germany 3,197 81.90 12,406 1,354.04 Canada 1,488 34.83 United States 16,245 314.18 GDP value, rank the above countries in descending order? (1 mark) Using your basic knowledge in macroeconomics, rank the above countries in terms of their standard of living? (6 marks)
Your family buys a new plasma TV (1 mark) Your neighbour buys a new house. (1 mark) All townships roads are repaved (1 mark) You buy a bottle of Italian wine. (1 mark) Toyota a new factory in Zambia. (1 mark) Consider an economy composed of only three firms: firm A, B and C. Firm A takes wood from the forest at no cost and produces planks out of this wood. Firm B, a manufacturing company, buys these planks from firm A and produces wardrobes. These wardrobes are sold to firm C, a retailer firm who in turn sales the wardrobes to consumers. Firms Quantity Price Wages Taxes Profits A 250 Planks $15 $2000 0 $1,750 B 50 Wardrobes $300 $800 $2,750 $7,700 C 50 Wardrobes $400 $500 $850 $3,650 Compute the GDP of this economy using the three (3) approaches to national income (15 marks) Bank has just hired you and you are tasked with the responsibility to rank by GDP the following countries: Country GDP (in billion US dollars) Population (in millions) 4,684 1,223.17 Germany 3,197 81.90 12,406 1,354.04 Canada 1,488 34.83 United States 16,245 314.18 GDP value, rank the above countries in descending order? (1 mark) Using your basic knowledge in macroeconomics, rank the above countries in terms of their standard of living? (6 marks)
ECF110-FPD-28-2016-1.docx