Economics Answers

(ii) Given that: depreciation = 90, indirect taxes = 70, subsidies = 30, payments to factors of production from abroad = 20, payments to foreign factors = 40.

Compute:

1) Gross national product (GNP) at market prices.

2) Net national product (NNP) at market prices.

3) Net national product (NNP) at factor cost.

4) Net domestic product (NDP) at factor cost

A firm employing 100 workers has an average absenteeism rate of 4%. On a given day, what is the probability of no workers being absent?

You are a manager in charge of monitoring cash flow at a company that makes photography
equipment. Traditional photography equipment comprises 40 percent of your revenues, which
grow about 2 percent annually. You recently received a preliminary report that suggests
consumers take three times more digital photographs than photos with traditional film, and that
the cross-price elasticity of demand between digital and disposable cameras is -0.3. In 2012, your company earned about $600 million from sales of digital cameras and about $400 million from sales of disposable cameras. If the own price elasticity of demand for disposable cameras is -2, how will a 4 percent decrease in the price of disposable cameras affect your overall revenues from both disposable and digital camera sales?

For the first time in two years, Big G (the cereal division of General Mills) raised cereal
prices by 4 percent. If, as a result of this price increase, the volume of all cereal sold by Big G
dropped by 5 percent, what can you infer about the own price elasticity of demand for Big G
cereal? Can you predict whether revenues on sales of its Lucky Charms brand increased or
decreased? Explain.

Revenue at a major cellular telephone manufacturer was $2.3 billion for the nine months
ending March 2, up 85 percent over revenues for the same period last year. Management
attributes the increase in revenues to a 108 percent increase in shipments, despite a 21 percent drop in the average blended selling price of its line of phones. Given this information, is it surprising that the company’s revenue increased when it decreased the average selling price of its phones? Explain.

Why budget deficit and reduction in tax both not apply at the same time? Which strategy should choose to increase investment incentives

To boast economic growth the government is most likely to
.A.Increase interest rate
B. Increase taxation rates
C. Provide incentives to invest
D. Provide incentives to save

Why have economists identified a certain ratio of investment to GDP as a necessary condition for self-sustaining growth?

To boost economic growth the government is more likely to
1. Increase interest rates
2. Increase taxation rates
3. Provide incentives to invest
4. Provide incentives to save