ECON 1012 Lecture Notes - Gdp Deflator, World Of A Song Of Ice And Fire, Supercomputer
Document Summary
Total cost: . 3 million ( million labor, sh. 2 million taxes, sh. 1 million interest) Total profit = total revenue - total cost = sh. 7 million. Total revenue: . 8 million (sold 3 computers + increase sh. 8 million in inventory) Total cost: . 2 million (cost of sh. 8 million x 4 supercomputers) Total profit = total revenue - total cost = sh. 6 million: product approach: c) Income approach: expenditure approach : y = gdp = c+i+g+nx. Sum of the value of the final product (not counting revenue from westeros computing because they produce intermediate goods which are all used up by meereen supercomputer) = gdp = . 8 million. In this case, we have two factors: consumption and investment. Westeros computing because, again, their goods are intermediate goods thus have been included in the market value of expenditure made on the final product. Gdp = consumption + investment = million + sh. 8 million = . 8 million.
