Economics Answers

National Income is the total value of all services and goods that are produced within a country and the income that comes from abroad for a particular period, normally one year.

Gross Domestic Product is defined as the value of the goods and services generated within a country.

By definitions, National income= Income from within the country and from abroad. GDP=Income within the country.

Here my doubt is I have seen in some textbooks why national income is referred as GDP and vice versa in measuring of national income?

Assume pears are sold in a perfectly competitive market, using a supply and demand graph, describe the impact, ceteris paribus, of a bumper crop on equilibrium price and output? In your discussion make sure to explain the process of moving to the new equilibrium output and price.

Examine the following statement
“The constant real income demand curve must have a negative slope.”

Hey! I'm currently studying A Level Economics. We're researching inflation right now, and one thing has confused me!

What is the difference between CPI and RPI??

Are there also measures called CPIX and RPIX too?
If so, what are these?

The internet seems to conflict on answers to these questions and my textbook doesn't mention the CPIX/RPIX at all.

Thanks!! :)

Assume, in an industry where firms are making an economic profit, the creation of an internet platform has broken down all entry barriers and resulted in a huge increase in the number of firms entering the industry. What will be the implication on profit to the existing firms in this industry? Support with graphical demand and supply analysis.

Using the below parameters calculate what is the budget surplus/deficit first a)in a closed economy with a government and b)in an open economy with a government.
(Note = C=autonomous consumption, I=Investment, G is government expenditure, X is exports, t is tax, Z is imports, Y is income.

C = 100 + 0.4Y
I = 300
G= 200
X = 300
T = 0.2
Z = 0.4

Please show workings. The answer for a) is 23.53 surplus and the answer for b) is also 23.53 surplus. However i am unclear how they got to this answer. Please assist . Thank you

If we increase quantity of a commodity or a good will consumer's satisfaction level increase? Here the quantity is NOT CONSUMED by consumer but if he purchase a good more and more of a same commodity what is his level of satisfaction? Will it increase?

If we increase quantity of a commodity or a good, will consumer's satisfaction level increase?

The characteristic feature of indifference curve is that it will not touch the X axis or Y axis. But as a special case it will touch the Y axis if the combination is between Money and Commodity. "If money is taken on Y-axis, then IC curve can touch oy-axis" here we have taken 'money' on Y-axis and 'commodity' on X-axis. Here my doubt is could we use indifference curve for one commodity? If so please explain me with an example.

Why monopolist Marginal revenue is less than the price he has charged for his goods