Production | Consumption | Surplus ? Production- Consumption | Capital for the Next Year | |
Year 1 | 100 | 40 | 60 | 60 |
Year 2 | 120 | 40 | - | - |
Year 3 | - | 40 | - | - |
Production | Consumption | Surplus | Capital for the Next Year | |
Year 1 | 80 | 40 | - | - |
Year 2 | - | 40 | - | - |
Year 3 | - | 40 | - | - |
Production | Consumption | Surplus ? Production- Consumption | Capital for the Next Year | |
Year 1 | 60 | 40 | - | - |
Year 2 | - | 40 | - | - |
Year 3 | - | 40 | - | - |
Answer:
(i)
Farmer 1
Farmer 2
Production
Consumption
Surplus- Production-
Consumption
Capital for the Next Year
Year 1
100
40
60
60
Year 2
120
40
80
80
Year 3
160
40
120
120
Farmer 3
Production
Consumption
Surplus
Capital for the Next Year
Year 1
80
40
40
40
Year 2
80
40
40
40
Year 3
80
40
40
40
(ii) Comparison of wheat production of the three farmers over the year
was as follows
Production
Consumption
Surplus
Capital for the Next Year
Year 1
60
40
20
20
Year 2
40
40
00
00
Year 3
00
40
-40
-40
Farmer 1 The production of wheat of the first farmer increased
from 100 to 160.
Farmer 2 The production of wheat of the second
farmer was constant at 80.
Farmer 3 The production of wheat of the third
farmer declined from 60 to 0.
(iii) In the third year, the third farmer did not produce
any wheat and had to buy it from the market, indicated by the negative sign. He
cannot continue production any longer unless he arranges capital, as he has no
surplus to invest as capital.
Farmer 1
Farmer 2
Farmer 3
Year 1
100
80
60
Year 2
120
80
40
Year 3
160
80
00
You need to login to perform this action.
You will be redirected in
3 sec