Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Yorkland is a small island nation the total population of the island is 1000 out of which 200 earn wage that is on average $50

Yorkland is a small island nation

the total population of the island is 1000 out of which 200 earn wage that is on average $50 per year

each wage earner spends $ 44 per year to buy consumer goods and services out of which $4 is spent for buying the goods and services from the other nations

the island exports a total of $1500 worth of goods

the government of the island imposes income tax for the islands hospital and school

there are only two businesses (services provider and food factory) on the island and they employ the above mentioned 200 wage earners

the service business spends $600 each year for buying new equipment while the food factory spends$400

what is the gdp (total output) of the island nation

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

Step: 3

blur-text-image

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

Introductory Econometrics A Modern Approach

Authors: Jeffrey M. Wooldridge

2nd Edition

0324113641, 9780324113648

More Books

Students also viewed these Economics questions

Question

1. What does this mean for me?

Answered: 1 week ago