1.    Assume thefollowing is a complete description of all economic activity in the country of Boloniafor 2012.

·      There are thousands of farmers but only two bigbusiness firms in Bolonia:  Axle Motors(an automobile manufacturing company) and Super Shopper (a chain of foodmarkets).  There are no taxes and nodepreciation.

·      Axle Motors produced 1,000 small cars which they soldat $9,000 each, and 100 trucks which they sold at $15,000 each. Consumersbought 800 of the cars and the remaining 200 were exported to the UnitedStates.  Super Shopper bought all of thetrucks.

·      Sales at Super Shopper markets totaled $14 million,all of it sold to consumers.

·      All of the farmers in Bolonia are self-employed andsell all of their wares to Super Shopper.

·      There is a government, which paid its president andcongress a total of $5 million for their services.

·      Consumers imported 300 Korean Hyundais at a cost of$12,000 each.

·      The costs incurred by all businesses were as follows:(all amounts are in dollars)

	Axle Motors	Super Shopper	Farmers
wages	7,800,000	6,500,000	0
interest	200,000	300,000	1,100,000
rent	400,000	1,500,000	2,400,000
food purchases	0	7,000,000	0

Compute the 2012 GDP for Bolonia using the "sumof final demands" approach.  

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.    Use the data given to compute Bolonia’s GDP using the“sum of factor payments” approach.