Consider a Firm Whose Final Output (And Sales)in a Particular

question 12

Essay

Consider a firm whose final output (and sales)in a particular year has a value of $1,200.To produce these goods,the firm used $500 worth of intermediate goods it had purchased in previous years plus $200 worth of newly-purchased intermediate goods.In the subsequent year,this same firm again sells $1,200 worth of final goods,but in this year has purchased $700 worth of intermediate goods,of which $100 is not used in current production but,rather,added to the firm's inventory.For each of these two years,calculate the value added by this firm.For each of these two years,calculate the contribution of this firm to the economy's GDP.

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Definitions:

Simple Random Sampling

A sampling method where each member of a population has an equal chance of being selected.

Standard Deviation

An indicator of the degree of spread or divergence among values in a dataset.

Standard Error

A measure of the variability (spread) of sample means around the population mean.

Target Population

The population for which statistical inferences such as point estimates are made. It is important for the target population to correspond as closely as possible to the sampled population.