1.Atoll is a small island nation. Its total population is 2,000, and it has 1,186 wage earners who earn an average of $540 per year. Each wage earner spends $250 dollars per year buying local goods and services and $ 50.00 buying imports. The island exports a total of $6,250 worth of goods. The government tax rate is 5.19% and all government money is spent on building infrastructure and supporting schools. There is only one industry (sugar cane production) on the island and it employs every wage earner. The industry spends $3,000 each year on new equipment.

A.Calculate the GDP for this small island use the expenditure approach.

B.What is GDP per capita?