Suppose a silver miner finds a silver nugget and sells the nugget to a mining company for $200.

Suppose a silver miner finds a silver nugget and sells the nugget to a mining company for $200. The mining company melts down the silver, purifies it, and sells it to a jewelry maker for $800. The jewelry maker fashions the silver into a necklace that it sells to a department store for $1,000. Finally, the department store sells the necklace to a customer for $1,500. The value added by the silver miner is $ . The value added by the mining company is $ . The value added by the jewelry maker is $ . The value added by the department store is $ . The total contribution to GDP is $ . Enter whole numbers with no commas or dollar signs.

Solutions

Expert Solution

The value added by the silver miner is $ 200

The value added by the mining company is $ 600 (i.e. $ 800 - $ 200)

The value added by the jewelry maker is $ 200 (i.e. $ 1,000 - $ 800)

The value added by the department store is $ 500 (i.e. $ 1,500 - $ 1,000)

The total contribution to GDP is $ 1500 (sum of value added i.e. $ 200 + $ 600 + $ 200 + $ 500)

Rahul Sunny answered 2 years ago

Next > < Previous

Related Solutions

The Concord Silver Company ("Concord") is a silver mining company engaged in the exploration, development and...

The Concord Silver Company ("Concord") is a silver mining company engaged in the exploration, development and production of silver mining throughout Canada, Mexico and South America. It is one of the largest silver producers in the world. The company has great potential as it seeks to expand production at several new mining sites around the world. Concord has hired SRK Consulting ("SRK"), a major geology firm, to analyze the silver production value from one of its new mines. SRK has...

Boondock Silver Mining Beth Boondock, owner of Boondock Silver Mining, is reviewing the details of a...

Boondock Silver Mining Beth Boondock, owner of Boondock Silver Mining, is reviewing the details of a new silver mine in South Dakota. According to the company's geologist, Dory Donovan, a detailed analysis of the mine suggests it would be productive for eight years. After that amount of time, all of the silver ore would be completely mined. Dory sent an estimate of the silver deposits to Gina Albert, the company's chief financial officer. Beth has contacted Gina to request a...

Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its...

Suppose an economy has four sectors: Mining, Lumber, Energy, and Transportation. Mining sells 15% of its output to Lumber, 70% to Energy, and retains the rest. Lumber sells 5% of its output to Mining, 50% to Energy, 20% to Transportation, and retains the rest. Energy sells 10% of its output to Mining, 15% to Lumber, 30% to Transportation, and retains the rest. Transportation sells 10% of its output to Mining, 10% to Lumber, 60% to Energy, and retains the rest....

Perth Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle...

Perth Mining Company operates two mines for the purpose of extracting gold and silver. The Saddle Mine costs $15,000/day to operate, and it yields 65 oz of gold and 2500 oz of silver each day. The Horseshoe Mine costs $16,000/day to operate, and it yields 70 oz of gold and 900 oz of silver each day. Company management has set a target of at least 485 oz of gold and 7,900 oz of silver. How many days should each mine...

(a) Suppose that silver currently sells for $1,200 an ounce. If the risk-free rate is 1%...

(a) Suppose that silver currently sells for $1,200 an ounce. If the risk-free rate is 1% per year, what should be the price of a one-year maturity futures contract? (b) Suppose the price of one-year futures contract is $1,220 instead in the previous problem, please construct an arbitrage strategy so that investors can make riskless profits. (c) Suppose the price of one-year futures contract is $1,205 instead in the previous problem, please construct an arbitrage strategy so that investors can...

Write a 200-300 word summary of this passage: The Mining Unions The major mining companies are...

Write a 200-300 word summary of this passage: The Mining Unions The major mining companies are responsible for employing the workers, generating profits and maintaining the mines. When the mines are operational, and in “working condition” or legally open for mining, the National Union of Mineworkers (also known as NUM) organizes all the legally hired mineworkers. NUM has been known to state that low level illegal miners are paying the price for the negative effects of illegal mining while the...

Silver Company

Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below: AprilMayJuneTotalBudgeted sales (all on account)$400,000$600,000$190,000$1,190,000From past experience, the company has learned that 30% of a month's sales are collected in the month of sale, another 60% are collected in the month following the sale, and the remaining 10% are collected in the second month...

Suppose the demand and supply of mining workers are (D): w=200-4E and (S): w= 50+E, where...

Suppose the demand and supply of mining workers are (D): w=200-4E and (S): w= 50+E, where w is wage and E is employment. a. What are the equilibrium wage and employment? Draw demand and supply curves. b. Suppose the government imposes $10 of payroll tax on employer, what are the new equilibrium wage and employment? Draw demand and supply curves. c. Suppose the government imposes $10 of payroll tax on employee, what are the new equilibrium wage and employment? Draw...

Cyanide is used in several industrial applications, such as mining gold and electroplating silver. A danger...

Cyanide is used in several industrial applications, such as mining gold and electroplating silver. A danger of working with cyanide solutions is the potential hazard of releasing highly toxic hydrogen cyanide gas. What conditions are necessary to ensure that less than 1% of the cyanide in a particular solution is chemically present as HCN rather than CN-? (HCN pKa= 9.2) (A) pH > 11.2 (B) pH > 10.2 (C) pH > 9.2 (D) pH > 8.2 (E) pH > 7.2...

Suppose that it takes an average Australian miner 10 hours to mine a ton of coal...

Suppose that it takes an average Australian miner 10 hours to mine a ton of coal and 20 hours to mine a ton of manganese. It takes the average South African miner 4 hours to mine a ton of coal and 12 hours to mine a ton of manganese. a) For each miner, calculate the opportunity cost of mining a ton of coal and a ton of manganese. b) In what task does each miner have a comparative advantage? Briefly...

Subjects