Search & Filtering
2. How are the tastes, or demand preferences, of a
nation introduced in this chapter? Why are they
needed?
An Essay on the Critical Evaluation of the Role of Government in an Economy
The essay must have the following components:
1. The Historical Perspective about Role of Government in Economy (How the role has changed since the views of Adam Smith)
2. Role of Government in different types of economies (Capitalist/Socialist/Mixed)
3. Theoretical Arguments for the Role of Government
4. Examples and Real Life Evidence
5. Criticism of the Role of Government
6. Conclusion
The following table shows the production possibilities of two countries in making cars and airplanes:
Hours needed to make one:
Amount produced in 2400 hours:
Car
Airplanes
Cars
Airplanes
Japan
30
150
80
16
United States
50
200
48
12
a. What is the opportunity cost of a car in Japan? What is the opportunity cost of an airplane in Japan? (2)
b. What is the opportunity cost of a car in USA? What is the opportunity cost of an airplane in USA? (2)
c. By looking at the table, say which city has an absolute advantage in both the goods? Why? (2)
Japan has a comparative advantage in which good and USA has a comparative advantage in which of the two goods? Why?
The demand curve for product X is given by QX = 50 − 2PX. How much consumer surplus do consumers receive when PX = $5?
Consider an economy with a different levels of aggregates as follows: c=0.8(1-t)Y t=0.25 I=900-50r G =800 L=0.25y-62.5r money supply: M=1000 price level :p=2 a) derive the IS and LM equation b) determine the equilibrium levels of income and interest rate c) calculate the government spending multiplier d)By how much income and interest change for a unit change in government spending? e) determine the amount of ''crowd out'' and interpret it
One has the following information about the sector of companies: Direct tax: 23% of the Profits from production and patrimony (income) Distributed Profits: 38% of the Profits from production and patrimony (income) Current transfers toward other sectors: 7% from the Disposable Income Disposable income: 75.5 billion Euro Profits from production and patrimony (income): 97.4 billion Euro Use an account of the sector of companies and compute the value of the current transfers received from other sectors!
with steps of solution
a. The value of the current transfers received from other sectors is 14.6 billion Euro
b. The value of the current transfers received from other sectors is 5.6 billion Euro
c. The value of the current transfers received from other sectors is 2.1 billion Euro
d. The value of the current transfers received from other sectors is 1.0 billion Euro
e. The value of the current transfers received from other sectors is 17.7 billion Euro
One has the following information regarding a synthetic account: Depreciation: 2.4 times larger than the subsidies Indirect Tax on goods and imports: 17.5 billion Euro Gross domestic product (market prices): 12.1 times larger than the indirect tax on goods and imports Subsidies: 4.3% from the Gross domestic product (market prices) Using a synthetic account please compute the value of the Net domestic product!
with steps of solutions
a.The value of Net Domestic Product is 181.5 billion Euro
b.The value of Net Domestic Product is 133.7 billion Euro
c.The value of Net Domestic Product is 143.0 billion Euro
d.The value of Net Domestic Product is 164.2 billion Euro
e.The value of Net Domestic Product is 169.5 billion Euro
One has the following information regarding a synthetic account: Depreciation: 2.4 times larger than the subsidies Indirect Tax on goods and imports: 17.5 billion Euro Gross domestic product (market prices): 12.1 times larger than the indirect tax on goods and imports Subsidies: 4.3% from the Gross domestic product (market prices) Using a synthetic account please compute the value of the Net domestic product!
a.The value of Net Domestic Product is 181.5 billion Euro
b.The value of Net Domestic Product is 133.7 billion Euro
c.The value of Net Domestic Product is 143.0 billion Euro
d.The value of Net Domestic Product is 164.2 billion Euro
e.The value of Net Domestic Product is 169.5 billion Euro
For the year Y, for five countries, one has the following information: GDP (X) = 850 000 currency X / GDP (Y) = 300 000 currency Y / GDP (Z) = 1 500 000 currency Z / GDP (T) = 725 000 currency T / GDP (W) = 1100000 currency W. Basket of products with identical products over the five economies - Basket of Products = 1.25*A + 3.5*B+2*C. Country X (prices in currency X) (Products: A / B / C): 14 / 19 / 21. Country Y (prices in currency Y) (Products: A / B / C) 25 / 32 / 39. Country Z (prices in currency Z) (Products: A / B / C) 8 / 13 / 19. Country T (prices in currency T) (Products: A / B / C) 11 / 16/ 23. Country W (prices in currency W) (Products: A / B / C) 17 / 19 / 26. The correct answer is:a.The value of GDP of country Y in currency X at PPP is 220847 and represents 36.10% of GDP of country X
The value of GDP of country Y in currency X at PPP is ?????? and represents ????%
One has the following information regarding a synthetic account: Depreciation: 2.6 times larger than the subsidies Indirect Tax on goods and imports: 15.5 billion Euro Gross domestic product (market prices): 12.1 times larger than the indirect tax on goods and imports Subsidies: 5.3% from the Gross domestic product (market prices) Using a synthetic account please compute the value of the Net domestic product!
with steps of solutions
a.The value of Net Domestic Product is 133.7 billion Euro
b.The value of Net Domestic Product is 169.5 billion Euro
c.The value of Net Domestic Product is 143.0 billion Euro
d.The value of Net Domestic Product is 164.2 billion Euro
E. The value of Net Domestic Product is 156.1 billion Euro
