Question: Consider the following economy of in which only two firms operate. The activities of the two firms can be summarized as follows:
FIRM A
|
COSTS
|
|
REVENUES
|
|
|
|
|
|
Wages
|
$120
|
Exports
|
$110
|
|
Purchases from Firm B
|
$100
|
Sales to Firm B
|
$200
|
|
|
Sales to the public
|
$600
|
|
|
|
|
FIRM B
|
COSTS
|
|
REVENUES
|
|
|
|
|
|
Wages
|
$200
|
Sales to Firm A
|
$100
|
|
Purchases from Firm A
|
$200
|
Sales to the public
|
$400
|
|
Taxes
|
$100
|
|
|
Compute the GDP of this economy using the three (3) approaches to national income?