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

AS/AD model, In an effort to provide tax relief for households while still ...

In an effort to provide tax relief for households while still balancing the budget, Congress votes to raise business taxes and decrease personal taxes. explain the impact of these

What is the total cost of producing output, What is the total cost of produ...

What is the total cost of producing output? The total cost of producing a specified quantity of output is the total of the fixed cost along with the variable cost of producing

Lag length criteria, In order to estimate aVAR, alag length must be used in...

In order to estimate aVAR, alag length must be used in the estimation. There are many different criteria which can be used to signal the ideal lag length to use.Asteriou & Hall (20

Explain about phillips curve, Q. Explain about Phillips curve ? The Ph...

Q. Explain about Phillips curve ? The Phillips curve  According to traditional Phillips curve, there is a negative and stable relationship between unemployment andwage in

Unemployment, Assume an economy that is operating above full employment. A....

Assume an economy that is operating above full employment. A. Draw a correctly labeled AD/AS graph showing: i. the problem in the economy ii. current price level and output iii. fu

Supply and Demand, During the 1990s, technological advance reduced the cost...

During the 1990s, technological advance reduced the cost of computer chips. Explain, with the use supply and demand diagrams, how the following markets are affected in terms of pr

Demand for money, what is the meaning of the statement ''money is not merel...

what is the meaning of the statement ''money is not merely a veil or wrapper''?

Estimate efficient outcome, The city of Johnstown decides to build a new st...

The city of Johnstown decides to build a new stadium to attract a basketball team from the city of Rosendale.  One economic advisor suggests that the stadium should be fi

Control of ochratoxin, Q. Control of ochratoxin? Control: Once ochratox...

Q. Control of ochratoxin? Control: Once ochratoxin A has been formed in a food, it is difficult to remove by most forms of food processing. Cooking with or without previous soa

Partial equilibrium and surplus, The city of Cabernet is very famous for it...

The city of Cabernet is very famous for its production of wine. The inhabitants of the city have an aggregate demand for wine that can be described as follows: D(p) = Q d =150-

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