An Economy Has Three Industries: A, B, and C

question 5

Short Answer

An economy has three industries: A, B, and C. These industries have annual consumer sales of 45, 37, and 64 (in millions of dollars), respectively. In addition, for every dollar of goods that A sells, A requires 25 cents from B and 15 cents from C. For each dollar of goods that B sells, B requires 35 cents from A and 25 cents from C. For each dollar of goods that C sells, C requires 20 cents from A and 45 cents from B. Let a, b, c be the total output from industries A, B, C, respectively. What values of a, b, c (rounded to the nearest thousand dollars) will satisfy both consumer and between-industry demand?

Identify the enforceability of promises and modifications in preexisting contracts.

Analyze the legal effect of an illusory promise and gratuitous promises in contract law.

Explain the importance of legal detriment and legal benefit in the context of enforceable contracts.

Understand the role and application of promissory estoppel in contract law.

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Definitions:

Journal Entry

A record in the books of account that represents a financial transaction.

Payroll Taxes Expense

Taxes that employers are required to pay based on the wages and salaries of their employees, such as Social Security and Medicare taxes.

FICA Tax

A U.S. federal payroll tax used to fund Social Security and Medicare, distributed between employees and employers.

FUTA Tax

A United States federal tax levied on employers to fund state workforce agencies and unemployment benefits.