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

Definitions for GDPand GNP, Why is GNP C+ I + G + (X- M)+ NR + NP. What is...

Why is GNP C+ I + G + (X- M)+ NR + NP. What is relationship between X - M and NR + NP

Macroeconomic Analysis, Derive the conditions for steady state in the Solow...

Derive the conditions for steady state in the Solow model. What are its implications? In what respects is the golden rule different from the steady state?

How many pounds of potatoes will she purchase, Potatoes cost Janice $1 per ...

Potatoes cost Janice $1 per pound, and she has $5.00 that she could possibly spend on potatoes or other items. If she feels that the first pound of potatoes is worth $1.50, the sec

BUS668, Assuming that the expectations theory is the correct theory of the ...

Assuming that the expectations theory is the correct theory of the term structure, calculate the interest rates in the term structure for maturity. Next, plot the resulting yield c

How commercial banks create money, How commercial banks "create money" ...

How commercial banks "create money" Commercial banks obviously cannot influence the amount of currency in the economy or the monetary base, since they are not allowed to print

National income, effects of tax increase on the gross domestic product

effects of tax increase on the gross domestic product

AD-AS, THE AD CURVE SHIFT TO THE LEFT WHEN

THE AD CURVE SHIFT TO THE LEFT WHEN

Multiplier concept, Ask question difference between static multiplier and d...

Ask question difference between static multiplier and dyanamic multiplier

Unemployment classification, Unemployment classification Economists som...

Unemployment classification Economists sometimes differentiate between different types of unemployment. There are many type of ways of classifying unemployment however the foll

Banking system, how is credit creation by commercial bank

how is credit creation by commercial bank

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