URGENT HELP NEEDED! My exam is tomorrow

Discussion in 'Economics' started by nooty, Mar 25, 2008.

  1. nooty


    I really need someone to answer this question for me with the way to solve it typed. It will be greatly appreciated. My exam is tomorrow.

    Say in an economy there are only 2 companies. Company A and Company B. A imports 800$ of fertilizer to produce 6000$ of oranges. A sells to public 2000$ worth of oranges, and exports 1000$ worth of oranges. It sells the rest to Company B. A also pays 1000$ salaries, 300$ taxes, 300$ rent.

    Company B uses the oranges it bought from A to produce 10,000$ worth of orange juice. It sold 6500$ of orange juice to public. It exported 2000$ worth of juice, and stored the rest. Comp B pays 2200$ salries, 1800$ interest, and 500$taxes.

    Find the GDP using :

    the expenditure approach (Y = Consumption + investment + govt spending+ net exports)

    the income approach: (Y=wages+interest+rent+profit+taxes) - NFI which is the Net Factor Income
  2. 1.61803399

  3. the golden mean?
  4. Man, do I feel your pain!! Better you than me.
  5. Ok....How greatly appreciated will you be?

  6. nooty


    just please help me if u know how :D
  7. What's it in for us?

    Look junior...you're the one who didn't study. You're in no position to negotiate.

    What are you willing to offer for the right answer?

  8. I got 8900 for the expenditure approach, I assumed that taxes = gov't spending and didn't include any investment, but could the 1500 in OJ B sent to storage be an investment?

    And 10700 through the income approach, but had 0 for interest and NFI, because I have no f-ing idea what it stands for. (I know Net factor income, but I don't know what that is)

    But maybe you should do your homework yourself, because you know better than anyone on this board how to do this. I am sure my answers are wrong

  9. Gawd....what a pair of douche bags.
    #10     Mar 25, 2008