national income, Macroeconomics

Assignment Help:
:- Consider a closed capitalist economy in which all productions is undertaken by100 firms and wages and profits are theonly 2 categories of incomes. Assume further that all wages are consumed while no consumption is made out of profits. The following informations is available for that economy for the year 2013.
- Each of 50 firms employed 100 people for 250 days in the year at a wage rate of rs 50 per day and 20 people for the year at a wage rate of rs 200 per month. The remaining 50 firms each employed 200 people for 250 days in the year at a wage rate of rs 50 per day.
- Gross fixed capital formation by each firm was rs 7 lakhs, depreciation for each was rs 1.2 lakhs, consumption of intermediates by each firm was rs 15 lakhs and change in stocks/inventories for each firm was zero.

Q 1- Determine on the basis of the above the economy’s gross and net value added in the 2013 and also the level of gross and net profits .
Q 2- State whether the following statements are true or false by giving reasons.
A:- The total sales of all firms in the economy cannot be determined from the given informations.
B:- The profits of each firms can be determined from the available information.

Related Discussions:- national income

Current event opportunity, Give an example of a current event opportunity c...

Give an example of a current event opportunity cost that includes graphs

Wholesale prices, Wholesale Prices, Consumer Prices and Inflation   From...

Wholesale Prices, Consumer Prices and Inflation   From the man on the street to the highest policy makers, the behavior of prices is of intimate concern. Prices determine the pu

Sales tax on restaurant food, If you were a restaurant owner and you knew t...

If you were a restaurant owner and you knew that the demand for your restaurant was elastic, how would you feel about a sales tax on restaurant food? Explain.

COMPLETE KEYNESTION MODEL, WHAT IS THE SHAPE OF AGGREGATE SUPPLY CURVE IN C...

WHAT IS THE SHAPE OF AGGREGATE SUPPLY CURVE IN COMPLETE KEYNESIAN MODEL

Factors you would examine in your research, Identify a generic organization...

Identify a generic organization (e.g., manufacturing plant, hospital, educational institution). You will use this same organization in your Final Project. Assume that you are part

Solow model, Q1. The poorest countries in the world have a per capita incom...

Q1. The poorest countries in the world have a per capita income of about $600 today. We can reasonably assume that it is nearly impossible to live on an income below half this leve

Major economic indicators, Discuss the three major economic indicators and ...

Discuss the three major economic indicators and how they are indicative of our current economic climate.

Output-maximizing model, For a single nonprofit provider, describe an outpu...

For a single nonprofit provider, describe an output-maximizing model to predict supplier behavior.

Demand and supply, The Australian government administers two programs that ...

The Australian government administers two programs that affect the market for cigarettes. First, media campaigns and labelling requirements aimed at making public aware of the dan

What is the malthusian theory on population, If population growth carry on ...

If population growth carry on then there will not be sufficient resources around for everyone this will lead to an event such as famine / war, which will decrease the population.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd