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2. You have obtained the following information on a country’s population:
Number of employed people who are looking for work every day: 420
Total number of employed people: 1000
Total number of unemployed people: 30
Number of retired people: 200
People over the age of 16: 2000
a)Calculate the unemployment rate and labor-force-participation rate of this country
b)What do you understand by the Menu Cost of inflation? Explain with example.
3. In the year 2010, Burgerina's per capita GDP was 142.69 USD. Due to extraordinary economic policy measures implemented by the government, the country witnessed a staggering growth of 10% for the last 11 years. What is Burgerina’s GDP in 2021?
1.The following information is presented to you regarding some transactions that have taken place in the year 2021: Description of transactions & Amount in dollars
The garment owner pays a salary to her workers-$500000
She purchases raw materials to produce garment products-$400000
She purchases second-hand machinery from markets to produce garment products-$600000
She sells RMG products to the domestic market-$450000
She sells RMG products to the international market-$678000
She accumulates unsold products in her warehouse-$100,000
a)Based on the information provided, calculate contribution to the GDP for the aforementioned transactions (using the expenditure approach). Also, specify the components in which the transaction items will go.
2.Explain how structural unemployment can be addressed by policy changes.
Distinguish between substitutes and complements using cross elasticity coefficients
b. If households spend $55 billion on goods and $45 billion on
services, how much in revenues do businesses receive in the
product market?
If Veronica Vaughn spends all of her daily income on cigarettes and Yoo Hoo, she can afford 10 packs of cigarettes and 10 bottles of Yoo Hoo. She can also afford 6 packs of cigarettes and 22 bottles of Yoo Hoo.
Now suppose the price of cigarettes falls by $1 and the price of YooHoo roses by $1. If Veronica was consuming 5 packs of cigarettes and 30 bottles of Yoo Hoo prior to the price changes, how much must her income rise under the new prices in order for her to just afford the old bundle, (5,30)?
how gross national product (GNI) can be derived from gross domestic product (GDP).
The prevailing market rates are as follows.
INR/USD = Rs. 77.00
Interest rate for a 6 month loan in India = 12% per annum
Interest rate for a 6 month loan in USA = 6% per annum
a. Explain the concept of Interest Rate Parity. What will be the expected 6 -months
forward rate for US dollar in India?
b. Compute the Forward premium/discount of USD/INR in the Indian Forex Market?
Identify which party is playing what role in the following Letter of Credit transaction. ABC Limited wants to import raw material from Z123 Limited, a supplier in Germany who banks with T.R.V. Bank. The supplier insists that ABC Limited issue a Letter of Credit for the full value of the transaction. A tenure of 90 days is agreed upon. ABC Limited approaches N.O.P. Bank to issue a Letter of Credit. You are required to identify the steps involved in a Letter of Credit transaction. Also Identify which party is playing the role of Issuing Bank Beneficiary Applicant Beneficiary Bank
ABC Limited, an Indian Company has an export exposure of 10 million Yen. Yen is not directly quoted against the Rupee. The current spot rates are USD/INR = 41.79 and USD/JPY =129.75. It is estimated that Yen will depreciate to 144 level and Rupee to depreciate against Dollar to 43. The Forward rate for September 2020 USD/YEN = 137.35 and USD/INR 42.89. Given that the actual spot rate on 30 September 2020 was USD/YEN = 137.85 and USD/INR = 42.78, is the decision to take forward cover justified in hindsight?
A consumer's Total Utility Function of two goods X and y are as follows:
TUx=50x-5x²
TUy=32y-4y²
Price of X=Rs.5
Price of y: Rs.8
Consumer income : 120
i) Derive consumer's budget constraint
ii) Derive the marginal utility X
iii) Derive marginal utility Y
iv) Find out the consumer optimum combination of good X and Y at the market.
