Economics Answers

what is the core issue of poverty in Pakistan?

C=consumption, Ip=investment spending (as a function of price level), G=government
spending, Tx=tax revenue, Yd=after-tax income, a given closed economy:
C=100+0.9Yd–20P
Ip=400–40P
G=300
T=100
Moreover, the aggregate supply curve for this economy is defined by the following equation:
P=1.41+0.0001Y
1Find the equilibrium level of the overall price and aggregate output in this
economy. What would be the value of consumption and investment spending at this
equilibrium?
2How would the equilibrium aggregate output and price level change if
government spending increases to Gnew=400? What would be the value of consumption
and investment spending at this new equilibrium?
3Compare equilibrium values of investment spending and consumption you find
in parts(2)and(1). How would you explain the changes? Elaborate your answer for both
investment and consumption.

What is the difference between gross domestic (GDP) and gross national product (GNP) and which is likely to be lower in developing countries? Why?

The following data relates to the market value of economic transactions for the three main sectors of your country’s economy.

SECTOR VALUE OF OUTPUT PURCHASES FROM OTHER FIRMS
Agriculture 300 160
Manufacturing 200 150
Services 150 120

Required:

(i) Compute the gross domestic product (GDP) and explain the method used and why.

(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

Why differentiation is made between current liabilities and non current liabilities

Compensation=$329
Consumption=$370
Export=$55
Net foriegn factor income =$3
Government spending=$43
Gross investment=$43
Import=$63
Net interest=$49
Profit=$69
Rental income=$46
Calculate GDP and GNP with both approaches to national income accounting?

Harpic Corp manufactures plastic broom and mop holders, and the production function for these holders is expressed as :
Q = 30L^(0⋅85) K^0.20

Where, Q = number of plastic holders produced per day
K = units of capital input per day
L = labour input in working hours per day

The firm currently employs 20 units of capital at cost of RM75 per unit and 25 units of labour at a cost of RM50 per unit

a) Based on the current inputs used, compute the level of output

b) Compute the current total costs

c) Given the current input usage, is the first operation efficiently?

d) Derive the equation path equation

e) Does the production function exhibits increasing, constant or decreasing returns to scale? Explain.

f) Determine the percentage increase in output if both labour and capital are each increased by 15%

Quantity of books is 0,1,2,3,4,5,6
Total utility from books is 0,190,255,300,325,340,346
Quantity of copies is 0,1,2,3,4,5,6
Total utility from copies is 0,170,220,250,265,274,276
A) if the consumer have an income of 4 dollars, book cost is 1 dollar and copy cost is 0.20 dollar, which of the combination maximizes the consumer's utility
B) if the consumer has an income of 4 dollars, book cost is 1 dollar and copy cost is 0.20 dollars what is the consumer's utility when he/she maximizes utilitiy

In 1895, the first a sporting event was held. The winner's prize money was $110. In 2007, the winner's check was $1,168,000.



(a) What was the percentage increase per year in the winner's check over this period?



(b) If the winner's prize increases at the same rate, what will it be in 2040?

1. Real GDP is nominal GDP adjusted for: A) double counting. B) changes in prices. C) population. D) imports.

2. Every year more and more purchases are made with credit cards on the Internet. Given this trend, all else equal, we would expect: A) the money demand curve to shift outward. B) the money demand curve to shift inward. C) a downward movement along a fixed money demand curve. D) an upward movement along a fixed money demand curve.

3. Paul, who is 60 years old and has been a steelworker for 35 years, is unemployed because the steel plant in his town closed and moved to Cape Town. Sam is experiencing: A) cyclical unemployment. B) permanent unemployment. C) frictional unemployment. D) structural unemployment.