Business in Mathematica (Consumer Side)

Quantitative Finance Level 4

In the country of Mathematica, there are two citizens: Calvin and Daniel. Consider the following actions:

Calvin purchases a calculator made in Mathematica.

Calvin purchases a calculator made in Algebria, a foreign country.

Calvin purchases calculator parts made in Mathematica to build his own calculator

Calvin builds his own calculator from spare parts.

Daniel sells a used calculator to Calvin.

Daniel breaks his calculator and pays a repairman to fix it.

Daniel invests in the Mathematica stock market.

Daniel pays income tax to the government of Mathematica.

Which of those actions will increase the GDP of Mathematica? If your answer is statements $n_1, n_2, \dots, n_k,$ enter the value of $\displaystyle \sum_{i=1}^k 2^{n_i - 1}.$

The answer is 37.

1 solution

Tapas Mazumdar
Aug 11, 2020

Goods purchased in the country, a case of personal consumption expenditure is counted in GDP.
Foreign goods purchased not counted in GDP.
Personal consumption expenditure again to buy parts for making a calculator, so counted in GDP.
Spare parts used, no good purchased, not counted in GDP.
Used calculator, no new good purchased, not counted in GDP.
Fee for services of the repairman under personal consumption expenditure is counted in GDP.
Investment in stocks, bonds, etc. not counted in GDP.
Direct taxes not counted in GDP, only indirect taxes are accounted for.

The correct answers are 1,3,6.

The required answer is 1+4+32 = 37.

Business in Mathematica (Consumer Side)

The answer is 37.

1 solution

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