Question
1.4 Study the information below and choose the correct option. In a hypothetical economy, coal is sold to electricity producers at a rate of 100
1.4 Study the information below and choose the correct option. In a hypothetical economy, coal is sold to electricity producers at a rate of 100 cents per kW (i.e. the amount of electricity the coal can produce). Electricity is produced by power producers and sold to distributors at a rate of 150 cents per kW. These distributors then well the electricity to final consumers at a rate of 200 cents per kW. There were 50 million kW were produced in 2021. Assuming no other good was produced in this economy it can be concluded in 2021 that: a) The GDP in this economy according to the production method is R 50 million b) The GDP in this economy according to the expenditure method is R 200 million c) The GDP in this economy according to the value added method is R 50 million d) The GDP in this economy according to the value added method is R 100 million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started