Other Economics Answers

What has been the impact of international financial organizations including programs of the IMF

and the World Bank Group on the growth and stability prospects of low- and middle-income

countries?

Make an essay entitled "The Importance of Global Citizenship".The essay should be 3-4 paragraphs with 45 sentences per paragraph.

What efforts of the whole array of inter-governmental organizations do the dynamics of globalization demand?

Discuss the significance of international organizations in promoting social and economic growth in 2-3 paragraphs with 3 sentences for each paragraph.

Is there a negative or positive consequences when the north american free trade agreement was implemented? Discuss.

The Specific Factors Model (Lecture 3)

We examined a trade liberalization shock for the specific factors model during the lecture. Now instead consider the following shocks for a closed economy (to simplify the analysis, let's assume that Pc and PF are fixed and do not respond to the shocks):

(a) An exogenous increase in the labour specific to the sector producing food (LF). How does it affect the equilibrium outcomes (wages, rental rate of capital, the allocation of capital across sectors)? Who are the winners and losers from this shock?

(b) How about an exogenous increase in the total amount of the mobile factor K? Who are the winners and losers?

(Hint: How does each shock affect the figure we use to analyse the equilibrium?)

The assumption of equal marginal utility of consumption is one way to justify the sustainability standard

MCARTECH Pvt. Ltd. is considering two mutually exclusive capital investments. The project’s expected net cash flows are as follows:

Expected Cash Flows

Year Project A Project B

0 -500 -875

1 100 150

2 110 200

3 120 250

4 175 375

5 240 530

6 300 680

a. If you were told that each project’s cost of capital was 12%, which project should be selected using the NPV criteria?

b. What is the profitability index for each project if the cost of capital is 12%?

c. What is the regular payback period for these two projects?

(10 Marks)

Following emoluments are received by Ms Sangeeta during the previous year ended on 31.3.2021

Basic salary 250000

Dearness Allowance 10000

Commission 2500

Entertainment allowance 2000

Medical expenses reimbursed 25000

Professional taxes paid 2000(Rs1000 paid by employer)

Ms. Sangeeta contributes Rs 2000 towards the Recognized Provident Fund

She has no other income.

Compute the income from salary for A.Y 2021-22, and give reasons and explanations wherever required, If Ms. Sangeeta is a Government employee.

Expected Cash Flows

Year Project A Project B

0 -500 -875

1 100 150

2 110 200

3 120 252

4 175 375

5 240 530

6 300 680

a. If you were told that each project’s cost of capital was 12%, which project should be selected using the NPV criteria?

b. What is the profitability index for each project if the cost of capital is 12%?

c. What is the regular payback period for these two projects?