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A U.S. ma.1 research firm deconsIncled an Apple iPed and studied 91e manufacturers, costs, and profits of each of ttle parts and °propene.. The final results are shown in . table. What is Apple, profit, Where in the national inoome and product aocou. of the United States, Japan, Sou. Korea, a. China are these transactions reoorded?
Apple, profit on an Pod is $0.
Question Facts
An Apple iPod sells in the United States for $299. AJapanese firm, Toshiba, makes the hard disk and display screen, which cost SM. Other components produoed in South Korea cost $25. Other components produoed in the United States cost $21. The iPed is assembled in China at a oost of $5.
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1- Apple's profit on an iPod is______?
These transactions are recorded in the national income and product accounts as? follows:
2- The United States has exports of_____? and imports of_____?
3- consumption expenditure of_____ ?
4- Japan has exports of________ ?
5- South Korea has exports of______?
6- China has imports of______? and exports of_______?
An iPod makes a contribution of ______ to world GDP.
Expert Solution
1) Computation of Apple's Profit on Ipod:
Profit on Ipod = Total Revenue - Total Cost
Here,
Total Revenue = $299
Total Cost = $93+$25+$21+$5+$75 = $219
Profit on Ipod = $299-$219 = $80
2) Computation of Exports and Imports of US:
Exports = $21
Imports = $93+$25+$21+$5 = $144
3) Computation of Consumption Expenditure:
Consumption Expenditure = $299
4) Computation of Exports of Japan:
Exports of Japan = $93
5) Computation of Exports of South Koria:
Exports of South Koria = $25
6) Computation of Imports and Exports of China:
Imports of China = $93+$25+$21 = $139
Exports of China = $93+$25+$21+$5 = $144
7) Computation of Contribution:
Contribution = $299
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