Question
After a boat rescues everyone else from Ricardo's Island, the Professor and Ricardo remain behind, afraid of getting shipwrecked again with the same bunch of
After a boat rescues everyone else from Ricardo's Island, the Professor and Ricardo remain behind, afraid of getting shipwrecked again with the same bunch of people. The Professor grows coconuts and catches fish. Last year she harvested 1000 coconuts and caught 500 fish. She values one fish as worth two coconuts. The Professor gave 200 coconuts to Ricardo in exchange for help in the harvest, and she gave Ricardo 100 fish in exchange for collecting worms for use in fishing. The Professor stored 100 of her coconuts in her hut for consumption at some future time. Ricardo consumed all his coconuts and fish. In terms of fish, what is the GDP of Ricardo's Island? What are consumption and investment? What are the incomes of the Professor and Ricardo?
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