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

Phillips curve in lowland, The Phillips curve in Lowland takes the form of ...

The Phillips curve in Lowland takes the form of ? = 0.04 - 0.5 (u - 0.05), where ? is the actual inflation rate and u is the unemployment rate. The Phillips curve in Highland takes

What is social cost benefit analysis, It refers to the study of feasibility...

It refers to the study of feasibility of a project in terms of its total economic cost and total economic advantages. It means to compare total cost with total advantage if we

Peoples national bank required reseves, Suppose that the reserve requiremen...

Suppose that the reserve requirement is 10 percent and the balance sheet of the People's National Bank looks like the accompanying example. a. What are the required reseves of P

Explain AS-AD model and inflation, Q. Explain AS-AD model and inflation? ...

Q. Explain AS-AD model and inflation? Even though AS-AD permits changes in the price level, it doesn't allow for persistent inflation or deflation. We can't have continued decr

Why economists use real gdp rather than nominal gdp, Explain why we cannot ...

Explain why we cannot measure the national product simply by adding up the production of all firms. Why do the economists use real GDP rather than nominal GDP to gauge economic

If the airline industry was an oligopoly and Qantas and Virg, If the airlin...

If the airline industry was an oligopoly and Qantas and Virgin could collude, what would be a dominant (Nash equilibrium strategy) that they could adopt with reference to their pri

Assignment help, Consider the economic data for Country A: Unemployment lev...

Consider the economic data for Country A: Unemployment level of 15% Natural Rate of Unemployment is 6%. Required Reserves is 25% C = 50 + 0.75Y; I = 600; G = 250 (note: T = 200 for

Pros and cons of commercial transactions, Examine the pros and cons of comm...

Examine the pros and cons of commercial transactions in blood from the egoistic, the utilitarian, and the Kantian perspectives

Determine the experimental design, An ecologist is interested in the possib...

An ecologist is interested in the possible negative effects of marinas and boat mooring areas on the abundances of fish. Having read Hurlbert's paper about pseudoreplication, he de

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