Consider the following economy consisting of 3 industry:
|Total Sales||2400||Total Sales||2200||Total Sales||3000|
|Wages Paid||1400||Wages Paid||1200||Wages Paid||1200|
|Farming inputs||200||Energy inputs||600||Farming inputs||800|
Calculate GDP using:
a. value of final good approach,
b. value added approach,
c. income approach.
Consider an economy with three productive sectors: mining and farming; manufacturing; and retailing. Manufacturers produce goods each year with a sale value of 500. They sell 400 to retailers and 100 direct to the private sector and to government for consumption. Retailers buy goods for 400 from manufacturers and buy 50 from the agricultural sector. Retailers sell gods for consumption for 500. Manufacturers buy goods worth 200 from mining and agricultural rms. Farmers also sell 100 directly to the households for consumption.
What is the value added in each sector and what is the total output for the economy?
How would you treat activities of criminals in GDP accounting? What about the activities of the police force?
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