ECON 2400 Study Guide - Midterm Guide: Apple Juice, Root Mean Square, Income Approach
25 Nov 2012
School
Department
Course
Professor
Document Summary
Total marks: 30: consider an economy with an apple farmer (firm a), a juice producer (firm j), some consumers, and a government. Assume that the only input of firm a was labor, and that firm j used apples and labor to produce apple juice. The rms hired domestic workers (the consumers) and paid them wages. All after-tax pro ts made by the rms were distributed to some domestic consumers. The government collected taxes from the domestic rms and hired the domestic workers to produce some public services for the domestic residents. Data for firm a, firm j, and the government are as follows. total value of output (apples) apples sold to firm j. apples sold to domestic consumers apples sold to foreigner consumers . Firm j total value of output (apple juice) . juice sold to foreign consumers juice stored as inventory.
