Exercise 2 (21 points) Assume an economy where consumers buy all goods from an o
ID: 1135812 • Letter: E
Question
Exercise 2 (21 points) Assume an economy where consumers buy all goods from an online store that allows trading firms to sell goods and consumers to sell secondhand goods. All sellers pay 30% of their sales to the store as hosting fees, of which 5% goes to technicians as wages and another 5% goes to a logistics firm for delivery of the goods to consumers. In a given year, Trading Firm A?s sales revenue is $1 million, and Trading Firm B, which sells secondhand goods, receives sales revenue of $0.5 million. Trading Firm A docs not employ any workers to produce or market the goods but pays 40% of its sales revenue to import the goods. Trading Firm B?s revenue for the sale of second-hand goods covers the hosting fees and the cost of goods originally purchased in the past. The logistics firm pays 80% of the sales revenues to truck drivers as wages. Calculate the economy's GDP for the year using (a) the product approach, (b) the expenditure approach, and (c) the income approachExplanation / Answer
E-commerce does not refer merely to a firm putting up a Web site for the purpose of selling goods to buyers over the Internet. For e-commerce to be a competitive alternative to traditional commercial transactions and for a firm to maximize the benefits of e-commerce, a number of technical as well as enabling issues have to be considered. A typical e-commerce transaction loop involves the following major players and corresponding requisites:
The Seller should have the following components:
Transaction partners include:
Consumers (in a business-to-consumer transaction) who:
Firms/Businesses (in a business-to-business transaction) that together form a critical mass of companies (especially within supply chains) with Internet access and the capability to place and take orders over the Internet.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.