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(i) Calculate the cost of intermediate goods, the value added at each stage and the final price for a bag of flour using the information
(i) Calculate the cost of intermediate goods, the value added at each stage and the final price for a bag of flour using the information below: (6 Marks) Stage of Production Sale Price Cost of intermediate Goods Value Added Farmer $45.00 ? ? Miller $65.00 ? ? Wholesaler $85.00 ? ? Grocer (final stage) $90.00 ? ? Final Price (GDP) ? (ii) Which approach was used to calculate GDP based on the presentation above in question (i)? (1 Mark) (iii) Name the four macroeconomic agents. (2 Marks) (iv) Which of the 4 economic agents did Sir John Maynard Keynes say must first spend or provide incentives to the others in order to bring the macroeconomy out of a recession or depression? (1 Mark) (v) Why can the macroeconomy be described as being similar to the human body? (1Mark) (vi) Which of the following represents a leakage from the circular flow in an economy? (1 Mark) (A) Consumption spending (B) Government spending (C) Investment spending (D)Savings (vii) In the circular flow of income name one transaction payment that is made by the government to households. (1Mark) (viii) In the circular flow of income name one transaction payment that is made by households to firms. (1Mark) (ix) In the circular flow of income name one transaction payment that is made by firms to government. (1Mark)
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