Transcribed text From Image: In 2000 in Woodland, there are three residents: The Lumberjack, The Woodworker, and The Farmer. Use the following (1-(v) to answer parts a-f. (1) The farmer grows $8,500 worth of carrots. She sells $5,500 worth of carrots to the residents of Woodland and exports $3,000 worth of carrots to Metalland (11) The Lumberjack cuts down $5,000 worth of lumber which she sells to the Woodworker for $5,000. (iii) The Woodworker uses the $5,000 worth of lumber to make $15,000 worth of furniture. $8,000 worth of the furniture is sold to residents of Woodland and $7,000 worth of the furniture is exported to Metalland. (iv) The Farmer, the Lumberjack, and the Woodworker each pay $500 in taxes to the government, which then pays the Lumberjack $1,000 to build a road. (v) The Farmer wants to expand her business: She purchases a $2,000 shed from Metalland and pays the Lumberjack $1,000 to assemble it Please answer the following questions: a. What is total consumption (personal expenditures) in Woodland? b. What is total business investment in Woodland? c. What are total government expenditures in Woodland? d. What are total exports in Woodland? e. What are total imports Woodland? f. Calculate GDP in Woodland?
Expert Chegg Question Answer:
a) Total Consumption or personal Expenditure in Woodland = Cost of Buying carrots + Cost of Furniture sold in Woodland + Cost of Assembling the shed.
Cost of buying Carrots in Woodland = $5500
Cost of Furniture sold in Woodland = $8000
So total Consumption = $5500 + $8000 = $13500
b) Total Business Investment in Woodland = Cost to Build a shed = $1000
c) Total Government Expenditure on Woodland = Expense to Build the road = $1000
d) Total Exports in Woodland = Carrot Sold to Metalland + Furniture Sold to Metalland= $3000 + $7000 = $10000
e) Total Imports in Woodland = Cost of Shed = $2000
f) GDP = Consumption + Investment + Government Spending + Exports – Imports = 13500 + 1000 + 1000 + 10000 – 2000 = $23500
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