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Assume that Country A has a population of 500,000 and only produces one good-cars. Country A produces 100,000 cars per year. The people in Country A purchase 90,000 cars, but there are not enough cars to fulfill all the demand. They decide to import 50,000 more. The government buys 25,000 cars for its police force, and 10,000 cars are bought by companies to transport employees to other locations to work. They also export 65,000 cars to nearby countries for sale.
What is Country A's GDP?What is the composition of GDP by percentage?What is the GDP per capita?If government purchases go up in the short run, what happens to GDP? Show this graphically.If consumption and government purchases go up, what happens to GDP in the long run? Why? How would this look in a graph?How does this relate to Keynesian economics?
In a closed economy $10,000 is to be spent anually on the maintenance of existing capital stock,while the factor cost of final goods producing during the year=65k $. Producers pay 10k by the way of production. Find GDP at market price.
Cost of capital is 12%. Its expects aftertax cash flows (including the tax shield from depreciation) for the next 5 years are:
Consider a family that ranks combinations of household production time (N) and purchased goods and services (Y) according to the formula: U= NY. Suppose the maximum time available in a day is 16 hours, the wage rate is $4 per hour and the fa..
You have been employed to manage a small manufacturing facility which has cost and production data given in the table listed below.
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Using concepts used just in Microeconomics(and ignoring any that you might think relevant from Macroeconomics), what does economics have to say about global warming. Is the lesser role for he market and of competition in China.
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Choose either the European Union or the North American Free Trade Arrangement, and answer the given questions based on your choice:
Large-scale wars typically bring a suspension of international trading and financial activities. Exchange rates lose much of their relevance under these conditions, but once the war is over governments wishing to fix exchange rates face the proble..
Determine the optimal size of the shopping center (to the nearest 100 square meters) based on existing estimates of the demand for retail space.
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