Question

Type the solution please do not write on papers GDP Calculate the total income in 1...

Type the solution please do not write on papers

GDP

Calculate the total income in 1 product economy

Roaster

Wages $15,000

Taxes $5,000

Revenue $35,000

beans sold to public $10,000

beans sold to coffee bar $25,000

Coffee bar

Wages $10,000

Taxes $2,000

Beans bought from roaster $25,000

Revenue from coffee sold to public $40,000

Homework Answers

Answer #1

Answer -

Calculation of the total income in 1 product economy

Particulars Explanation Amount ($)
I. Total wages (Roaster + Coffee bar) $15000 + $10000 25000
II. Total taxes (Roaster + Coffee bar) $5000 + $2000 7000
III. Roaster profit

Revenue - Expenses = $35000 - ($15000 in wages + $5000 in taxes)

15000
IV. Coffee bar profit Revenue - Expenses = $40000 - ($10000 in wages + $2000 in taxes + $25000 in beans) 3000
V. Total profit III + IV 18000
Total income I + II + V 50000
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