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Why do sale of used goods do not add to income of a country in a particular year? If you think of income as the inflow in your bank account. All outflows are just expenditures. So I think of income as how much stuff can someone buy in a particulate year. Lets say person A bought a football for 50 dollars. Someone's income is increased by 50 dollars. So currently total income of society is 50 dollars in the current year. Now the guy who bought it sells it for 30. His income in this year is 30. All outflow is expenditure, in other words you are making use of your income. It does not really reduce income. So total income of society in this year should be 50 + 30 = 80? What is wrong with this logic?
Calculate the percentage change in nominal GDP, real GDP and the GDP deflator in 2009 and 2010 from the preceding year. For each year, identify the variable that does not change. Explain in words why your answer makes sense.
Explain why domestic producers who supply a good that competes with imports would prefer an import-substitution approach to trade rather than an export promotion approach. Which policy would domestic consumers prefer and why.
Explain underlying basis for foreign direct investment and discuss several factors that may contribute to it. What factors have likely contributed to current U.S. net direct investment position.
q. 1. continue to read chapter 4 of your text book that deals with demand analysis. every assignment ought to answer in
Which of the following recieves government subsidies that are in place to protect the population rather than the economic reason.
Draw demand, marginal revenue and marginal cost curves for each market. Approximate profit maximizing prices and quantities graphically and/or determining solutions algebraically. Illustrate what are firm's total profits.
he chinese furniture manufacturers produce high quality early amerian furniture and successfully export large quantities of the furniture to the United States.
q1. the taxing agency in your state would like to impose a sales tax in a way that minimizes deadweight loss. to
Suppose that tax and aggregate expenditur income for an economy. Illustrate what is the change in taxes cause by an increase in government spending.
Firms raise capital from investors by issuing shares in the primary markets
elucidate explain why the cost structure associated with many kinds of information goods also services might imply a
Are you for or against free trade? Are you for or against NAFTA? What is the economic basis for trade? Explain the underlying facts that support free trade and give an example of a good that you purchased recently that is based on resource difference..
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