Macroeconomics Answers

A competitive firm’s cost function is

Following is information on the production levels of three different firms. Firm A is currently
producing at a quantity where it is experiencing increasing returns. Firm B is currently
producing at a quantity where it is experiencing diminishing returns. Firm C is currently
producing at a quantity where it is experiencing negative returns.
a. If each of the firms cut back on its labor force, what will happen to its marginal
product of labor? And why?
b. If each of the firms adds to its labor force, what will happen to its marginal product of
labor? And why?

SHUJA Pvt. Ltd. Purchased the following machines :
Machine – A was purchased on Jan 01, 2005 for Rs. 250,000.
Machine – B was purchased on May 01, 2005 for Rs. 350,000.
Machine – C was purchased on Sept 01, 2006 for Rs. 500,000.
All the above machines have no scrap value but estimated life of 10, 10 and 15 years respectively. Company follows Straight Line Method of depreciation for machine A and B and Diminishing Balance Method for machine C at 25% per annum. The accounting year ends on Dec. 31 each year. Machine-A was sold on Oct. 01, 2008 for cash Rs. 175,500.

Required :

Compute depreciation amount for the year ended Dec. 31, 2005, 2006 and 2007.
Show proper computation for machine-A sold.
Under what conditions, fixed assets may depreciate? Does the term ‘DEPRECIATION’also apply on land? Comment

Using the World Bank’s World Development Indicators database, https://databank.worldbank.org/home.aspx, a) Complete the following table. 2005 2010 2015 2018 GDP per capita (current) Australia China India U.S. GDP growth rate Australia China India U.S. Inflation rate Australia China India U.S. b) Produce a plot for each variable (GDP, gdp growth, inflation) comparing the four countries.
c) What can be inferred with respect to economic growth and price control in each of these country

Using the World Bank’s World Development Indicators database, https://databank.worldbank.org/home.aspx, a) Complete the following table. 2005 2010 2015 2018 GDP per capita (current) Australia China India U.S. GDP growth rate Australia China India U.S. Inflation rate Australia China India U.S. b) Produce a plot for each variable (GDP, gdp growth, inflation) comparing the four countries.
c) What can be inferred with respect to economic growth and price control in each of these country

Allen would like to open a business to produce a software that he thinks would be well-received by the market. However, the investment needed to start a busi- ness is very high and Allen could barely cover it on his own. The software is very likely to be successful and generate profits, but it takes 2 years before profits are generated. Explain why the existence of a financial intermediary, like a bank, makes Allen’s investment more likely.

Suppose a consumer x and y has the following utility function U=x^0.4y^0.8 if Price of good x and y 10 and 20 and income constraint is 500$. Find the quantities of x and y maximize utility

Is it true that :

An increase in exports will cause inflation expectations to be revised downwards

Greece lightning
what has been the impact of successive budget deficits on public sectors borrowing and debt in Greece ?

Greece lightning
what happened to the budget deficit in greece over time and why?