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Discuss the components of Gross National Product (GNP)? How does it understate aggregate production in Third World countries where substantial economic production may be consumed directly and thus not reach markets where it can be measured? Finally, is per capita income (PCI) a good measure of the level of living people enjoy or are the data skewed, given substantial differences in the distribution of income especially in Third World countries? Construct a 200-250 words posting in which you respond thoroughly, with at least one library source.
illustrate what happens to total income when the price of milk is increased.
Suppose the government cuts its purchases by $120 billion. As a result, budget deficit is reduced by $40 billion, private domestic decreases by $10 billion,
In a perfect capital market, advices for a corporate financial manager on making capital structure decisions.
Rachel utility function is given by U= I 1/2 , where I represents annual income in thousands of dollars. Assume Rachel is currently earning income of $23,000 (I =23) and can earn that income next year with certainty.
Assume that software purchases by businesses are treated as expenses, as they were before November 1999. Calculate GDP using three different approaches: expenditure approach, income approach, and product approach.
Draw marginal revenue function for this firm. What is the profit-maximizing price for this firm? On the graph describe the area, this represents the net loss to society resulting from the monopoly power conferred by the patent.
Describe the impact of an increase in government spending on GDP using both Keynesian and classical points of view.
Suppose the price elasticity coefficient anticipation of the Christmas season. Estimated 4th quarter sales volume will be.
Explain how can the abolition of cash fight inflation and reduce unemployment.
Illustrate what interest it should be used in project analysis calculations.
Elucidate why the MP/P relation is deficient as the sole mechanism for determining the optimal level of resource.
Now suppose that Charles Home improvement, when the disposal cost of old water heaters is included, has exactly the same average and marginal cost curves for installing replacement water heaters as does ABC water heater.
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