Answer :
The total produced by the society is $1,400, and the value of the creative economy is $1,400.
In this economy, there are four companies; one produces paint worth $100, another produces an easel worth $50, and the other two produce four canvases valued at $25 each. A painter purchases the paint, easel, and four canvases to create four paintings worth $150 each, and two of those paintings are purchased by a museum that earns $800 in tickets.The value-added is calculated by taking the value of output and subtracting the value of intermediate inputs that were used in production. For instance, the first business that produces paint contributes $100 in value added to the economy. The second company that produces easels contributes $50 in value added to the economy. The last two companies that produce four canvases valued at $25 each contribute $200 in value added to the economy. Since there are no other intermediate inputs, the total value added to the economy is $350. To avoid double-counting, we must add up all of the final outputs created in the economy, which include four paintings worth $150 each, or a total of $600, as well as the $800 in ticket sales earned by the museum. The total output of the economy is $1,400 ($600 + $800). Since creativity is being used in the production process, the value of the creative economy is $1,400. Therefore, the value added by each member of the economy is $100 for the first business, $50 for the second business, and $100 for the third and fourth businesses combined. The total produced by the society is $1,400, and the value of the creative economy is $1,400.
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