national income, Macroeconomics

Assignment Help:
:- Consider a closed capitalist economy in which all productions is undertaken by100 firms and wages and profits are theonly 2 categories of incomes. Assume further that all wages are consumed while no consumption is made out of profits. The following informations is available for that economy for the year 2013.
- Each of 50 firms employed 100 people for 250 days in the year at a wage rate of rs 50 per day and 20 people for the year at a wage rate of rs 200 per month. The remaining 50 firms each employed 200 people for 250 days in the year at a wage rate of rs 50 per day.
- Gross fixed capital formation by each firm was rs 7 lakhs, depreciation for each was rs 1.2 lakhs, consumption of intermediates by each firm was rs 15 lakhs and change in stocks/inventories for each firm was zero.

Q 1- Determine on the basis of the above the economy’s gross and net value added in the 2013 and also the level of gross and net profits .
Q 2- State whether the following statements are true or false by giving reasons.
A:- The total sales of all firms in the economy cannot be determined from the given informations.
B:- The profits of each firms can be determined from the available information.

Related Discussions:- national income

Calculate asset turnover, The following information has been extracted from...

The following information has been extracted from the recently published accounts of Noddy Plc:                           Balance sheet as at 31 st May

Determine the term - hot money, Determine the term - hot money A large ...

Determine the term - hot money A large 'hot money' inflow shifts the demand curve for currency to the right, leading to exchange rate rising and to an overvalued exchange rate

Equilibrium price and quantity, Use the following general linear demand rel...

Use the following general linear demand relation: Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the suppl

What are the two main costs of economic growth, What are the two main costs...

What are the two main costs of economic growth The two main costs of economic growth are resource depletion and environmental damage. Economic activity needs factor inp

How can we define the real wage as nominal wage, How can we define the real...

How can we define the real wage as nominal wage We define real wage as nominal wage divided by a price index (typically CPI). In the illustration above, your real wage was 20 i

Lower price in restaurant, A restaurant/bar is analyzing its pricing of bee...

A restaurant/bar is analyzing its pricing of beer. It has determined that the price elasticity of demand for beer is 0.8, the cross-price elasticity for wine with respect to the pr

Circula flow of economic, list and discuss the major markets and four agent...

list and discuss the major markets and four agents in the circular flow economic?

Factors shift out the ppc, What factors shift out the PPC and what is the o...

What factors shift out the PPC and what is the opportunity cost of the economy moving out to get back on the PPC? Explain?

Firms could produce vista, Would it be more efficient if more firms could p...

Would it be more efficient if more firms could produce Vista? Would Microsoft have spent the money to develop Vista if it didn't hold a patent--that is, if once it developed Vista,

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd