Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In 2000 in Woodland, there are three residents: The Lumberjack, The Woodworker, and The Farmer. Use the following (i)-(v) to answer parts a-f. (i) The

image text in transcribed
In 2000 in Woodland, there are three residents: The Lumberjack, The Woodworker, and The Farmer. Use the following (i)-(v) to answer parts a-f. (i) The farmer grows $7,000 worth of carrots. She sells $5,000 worth of carrots to the residents of Woodland and exports $2,000 worth of carrots to Metalland (ii) The Lumberjack cuts down $4,000 worth of lumber which she sells to the Woodworker for $4,000. (iii) The Woodworker uses the $4,000 worth of lumber to make $13,000 worth of furniture. $8,000 worth of the furniture is sold to residents of Woodland and $5,000 worth of the furniture is exported to Metalland. (iv) The Farmer, the Lumberjack, and the Woodworker each pay $500 in taxes to the government, which then pays the Lumberjack $1,000 to build a road. (v) The Farmer wants to expand her business: She purchases a $2,000 shed from Metalland and pays the Lumberjack $1,000 to assemble it. Please answer the following questions: a. What is total consumption (personal expenditures) in Woodland? b. What is total business investment in Woodland? c. What are total government expenditures in Woodland

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Marketing

Authors: Johny K Johansson

4th Edition

0072961805, 9780072961805

More Books

Students also viewed these Economics questions

Question

Decide if the vector is in the set. (a) (b) (c) (d) 3 C)( G)kIkER 2

Answered: 1 week ago

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago