The CPI and PPI are both measures of the price level. How are they different, and when might
you prefer one of these measures over the other?
Increases in real GDP are often interpreted as increases in welfare. What are some problems
with this interpretation? Which do you think is the biggest problem with it, and why?
What is the difference between GDP and GNP? Is one a better measure of income/output than the other? Why?
The demand function for commodity X, is QD5300220P; where P is the price in rupees per unit and QD is the quantity demanded in units per period. Which of the following is the price level at which total revenue of a firm facing this demand function is maximised ?
1. If the demand for using the Noida express way is given by :
Q = 40,000 - 2500P
Where Q is the number of users (vehicles) and P is the amount of toll collected per unit who uses the express way. In light of this information which of the following is true :
(1) At P=? 6 and Q= 14,000 ; demand is price inelastic.
(2) At P = ? 7 and Q = 16,500 ; demand is unitary elastic.
(3) At P=? 4 and Q =9,500, demand is price elastic.
(4) All of the above
In the national income accounts, what is the difference between
a. A firm’s buying an auto for an executive and the firm’s paying the executive additional income to buy the automobile herself?
b. Your hiring your spouse (who takes care of the house) rather than having him or her dothe work without pay?
c. Your deciding to buy an American car rather than a German car?
What would happen to GDP if the government hired unemployed workers, who had been
receiving amount $ TR in unemployment benefits, as government employees and now paid them $ TR to do nothing? Explain
In a Harrodian economy, ICOR is 4.5 : 1, population growth is 2% per annum, and the investment rate is 27%. Hence the annual growth of per capita will be
Suppose a firm with market power faces the following inverse demand P=4-(Q/20) The firm has the cost function C= 100 +8.4Q-(5/4)Q^2+(1/30)Q^3. Answer
a.Calculate the firm's market power as measured by the Lerner Indec.
b. Suppose the firm is contemplating investing $5 in R&D that , if successful, would change the demand to P=6-(Q/20) and the cost function to C=50+8.5Q-(7/10)Q^2+(1/60)Q^3. Find the minimum probability of success needed to convince the firm to invest in the innnovation.
In the most recently presidential election, Donald Trump won the electoral college vote, but lost the popular vote by 3 million votes. With this in mind, should the electoral college be abolished? What would have to happen to bring about a movement to do away with it? Who might support this effort? Who would be likely to oppose it?
You are given the following information about the economy: autonomous consumption = $300 billion planned investment = $300 billion government spending = $500 billion mpc = .8 imports = $200 billion exports = $500 billion
g. If full employment Y = $6000 billion, is there a recessionary or inflationary gap?
h. If full employment Y = $6000 billion, what is the GDP gap?
i. What kind of fiscal policy (expansionary or contractionary) could help the economy close the gap?
j. If you decided to change government spending, how much would you change G to close the GDP gap?
k. If the value of the dollar depreciated, how would this affect net exports? AD?
What is the efficient allocation of a two period model, given a constant demand curve, P= 20 – Q, a discount rate of 10% and a MC=6. Assume the total supply is estimated to be 20 units
In the two-period model the consumer aimed to die with zero assets. What would be the planning horizon of parents who wished their children to enjoy the same standard of living that they experienced? What is the planning horizon if every generation feels this way? Does every generation feel this way?
please reflect on the economic effects of the lifting of sanctions against Iran as a result of the Agreement. Who benefits from lifting the sanctions? Are sanctions a smart tool of foreign policy?
Heavy Water Project (Talcher) and Fertilizer plant (Paradeep) are famous industries of
A) Andhra Pradesh
B) Tamil nadu