Macroeconomics Answers

The President of Lisavia (a small country) wants to increase productivity in his country. He has recently become aware of an economic principle that suggests that as a nation's productivity rises, its income will rise and therefore its standard of living will also rise. You have just been appointed as the economic advisor for Lisavia. Discuss three economic policies you might advise the President to pursue in order for his country to achieve this increased standard of living.

America decides to use income approach to calculate GDP with the following: compensation of employees $4000 proprietors income $1500, corporate profit $1200, rental income $440, net interest $150,and has earnings of foreigners in America $50,earnings of citizens from America in foreign country $50, depreciation $40, subsidies $40 and indirect business taxes $30
Calculate the following
a national income
b GDP at market price
c GNP at factor price
d NDP at market price

WHAT TYPE OF FIRM IS A CARTEL?

Briefly list and elaborate on the factors that will be affecting the supply of the following
products in the next several years. Do you think these factors will cause the supply to in-
crease or decrease?
a. Crude oil
b. Beef
c. Computer memory chips
d. Hotel rooms
e. Fast food outlets in emerging markets
f. Credit cards issued by financial institutions
g. Laptop computers
h. PC servers

Briefly list and elaborate on the factors that will be affecting the demand for the following
products in the next several years. Do you think these factors will cause the demand to in-
crease or decrease?
a. Convenience foods (sold in food shops and supermarkets)
b. Products purchased on the Internet
c. Fax machines
d. digital cameras
e. DVDs rented from retail outlets
f. Pay-per-view television programing
g. Airline travel within the United States; airline travel within Europe
h. Gasoline

If taxi fares rise, what will happen to the total revenue received by taxi operators assuming that the elasticity of demand for taxi fares is elastic?

How were the government tax revenues and expenditure adjusted to make the the recession in US in 2007 less severe?

What happens to the equilibrium price and quanity when price of a complement increases?

What do you think is the main reason for joining and termination of membership by
countries in OPEC? (To answer this question, reference must be made on the
characteristics of Oligopoly and its demand curve.)

How can we benefit more from female economists in the economy?