Economics Answers

Kofinatland is a hypothetical economy with the following
economic indicators:
. Size of population: 8 million
. GDP at market price (GDP at m.px.): US $570 billion
. Subsidies: US $50 billion

. Interest paid by consumers: US $27 billion
Employees contribution to social insurance: US $200
billion
Net factor income from abroad (NFYFA): US $200
billion

Capital consumption allowance (CCA): US $80 billion
. Human development index (HDI): 0.91
Indirect taxes on goods and services (ITGS): US $120
billion
. Life expectancy rate: 87 years

. Government transfer payment: US $71.5 billion
Factor income of foreigners in the economy (FYF): US
$80 billion
. Natural population growth rate: 0.5%.

Determine the economy's:
i. Net national product at market cost (NNP at m.px)
ii. Net national product at factor cost (NNP at f.c.)
ii. Factor income of nationals abroad (FYN).
iiii. GDP per capita (note to use the GDP at m. px. in your

The effects of a tax on a firm's production decision.

A recreational park launches a unique package to attract the customers, e.g. from second ticket onwards
they offer 12 percent discount. Assume that for every activity the first ticket is of Rs. 120.
On the other hand, taking the law of diminishing utility, the customer's marginal utility gets decreased by
5 percent from second activity onwards, assume initial marginal utility is 35 utils.

a. Find the consumer's equilibrium point.
b. Would the maximization of utility different from consumer's equilibrium point, if yes how much?

Why the concept of additivity of utility get cancelled? Which concept replaced it, why that
considers superior?

If nominal GDP rises, then so must real GDP. true or false

Log Q=1.00 - 1.50log P + 3.00 log I
(1.20) (-2.50) (0.02) R2=0.21
Where P is price and I is income capita in thousands of rupees. The t statistics are shown in
parenthesis.
Based on the equation, is the product an inferior good, necessity or a luxury good? How much
confidence do you have in your answer? Explain.

at prices of rs 6 for a dvd and rs 4 for a coke bottle mike can afford to buy 6 dvds and 8 cokes with income 1 if mike is maximizing his utility at this bundle what is his income?

Storico Co. just paid a dividend of $2.10 per share. The company will increase its dividend by 20 percent next year and then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent dividend growth, after which the company will keep a constant growth rate forever. If the required return on the company's stock is 11 percent, what will a share of stock sell for today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 11 percent, and the company just paid a dividend of $1.15, what is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Moody Farms just paid a dividend of $3.75 on its stock. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a return of 13 percent for the first three years, a return of 11 percent for the next three years, and a return of 9 percent thereafter. What is the current share price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)