Exercise 3. A simple economy. Consider an economy with three domestic agents: Ann, Bill and Carl. And a foreign economy with a representative agent Fer.
Ann owns land and uses the trees in their yard for wood. She cuts down the trees and sells the wood.
Bill owns a firm that buys wood and build and sell tables.
Carl is a retired agent that has some wealth.
There is no government.
During the year the following transactions happen:
o Ann sold 700 pounds of wood at price $10/pound. The other 300 pounds are kept as inventory of the firm.
o Bill bought 500 pounds of wood, produced and sold 100 tables at price $500/table.
o Fer bought 30 tables from Bill and 200 pounds of wood from
Ann.
o The domestic agents (A, B & C) bought 70 tables from the firm
owned by Bill.
o Bill’s capital depreciated by $1000.
Calculate GDP for this economy and do the income decomposition (Wages, Taxes, Net Profits, Depreciation).
Exercise 3. A simple economy. Consider an economy with three domestic agents: Ann, Bill and Carl....
Exercise 3. A simple economy. Consider an economy with three domestic agents: Ann, Bill, and Carl. And a foreign economy with a representative agent Fer. • Ann owns the land and uses the trees in their yard for wood. She cuts down the trees and sells the wood. Bill owns a firm that buys wood and builds and sell tables. Carl is a retired agent that has some wealth. There is no government. During the year the following transactions happen:...
Consider an economy with three domestic agents: Ann, Bill and
Carl. And a foreign economy with a representative agent Fer
.
Ann owns land and uses the trees in their yard for wood. She cuts down the trees and sells the wood .Bill owns a firm that buys wood and build and sell tables. . Carl is a retired agent that has some wealth. There is no government. . During the year the following transactions happen: Ann sold 700 pounds...
Read about Cokes strategy in Africa in the article below and discuss the ethics of selling soft drinks to very poor people. Is this an issue that a company like Coke should consider? Africa: Coke's Last Frontier Sales are flat in developed countries. For Coke to keep growing, Africa is it By Duane Stanford Piles of trash are burning outside the Mamakamau Shop in Uthiru, a suburb of Nairobi, Kenya. Sewage trickles by in an open trench. Across the street,...