Using appropriate diagrams and the relevant assumptions, show how a tariff affects: a) A country's terms of trade b) Distribution of income among interest groups in the economy c) Production and consumption in the economy d) Factor rewards
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- Assume there are only two producing sector Y & Z in an economy. Calculatea) Gross value added at market price by each sector b) National income from the followings:Items Amount in CroresNet factor income from abroad- 20Sales by Y= 1000Sales by Z= 2000Change in stock of Z= -200C Closingstock of Y= 50 Opening stock of Y= 100Consumption of fixed capital by Y & Z= 180Indirect taxes paid by Y & Z= 120Purchase of raw material by Y= 500Purchase of raw material by Z= 600Exports by Z= 70To convert Gross Domestic Product to Net Domestic Product, which of the following is correct? Question 5Answer a. GDP – Capital Formation b. GDP – Depreciation c. GDP + Capital Formation d. GDP + DepreciationThe circular-flow diagram shows that all sources of income are owned by OA. households. B. firms and government. O C. landlords and foreigners. OD. corporations. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- The requirements of foreign trade and government (Y), total consumption (C) and total savings (S)). The total expenditure (AE) of all people in this country is equal to the total income (Y) at the end of the year. In the mentioned period, the rate or rate of change depending on income is used as 0.1. Find the country's income-related savings (S) function, compared to the year-end total expenditure (AE) 20000 and total consumption 19500 this year.You are given the following information about an economy: $ Millions GDP at Market Prices -1,,669.4Imports- 290.5Gross Domestic Capital Formation -48.7Income accruing to the Public Sector -39.0Retained Business Earnings -75.9Exports -273.4Subsidies -16.8Factor Payments from Abroad -10.0Capital Consumption Allowance -10.5Income Payments to Foreigners -19.2Direct Taxes -355.6Public Sector Consumption Expenditure- 490.1Indirect Taxes -297.3Transfer Payments -25.7 Derive the following:(i) National Income (ii) Net Investment (iii) Personal IncomeYou are given the following information about an economy: $ Millions GDP at Market Prices -1,,669.4Imports- 290.5Gross Domestic Capital Formation -48.7Income accruing to the Public Sector -39.0Retained Business Earnings -75.9Exports -273.4Subsidies -16.8Factor Payments from Abroad -10.0Capital Consumption Allowance -10.5Income Payments to Foreigners -19.2Direct Taxes -355.6Public Sector Consumption Expenditure- 490.1Indirect Taxes -297.3Transfer Payments -25.7 Derive the following:(iv) Disposable Income (v) Household Consumption Expenditure
- Fill in the Blanks with the options provided. (1) Output is obtained by aggregating the amounts sold, bartered or transferred to other institutional units, plus ____________________. The current accounts record the production of goods and services, the use of incomes for purposes of consumption and saving as well as (2) _________________________. 1a Use of Disposable Income Account1b Allocation of Primary Income Account1c Secondary Distribution of Income Account 2a Current Transfers2b Redistribution of Incomes among Institutional UnitsFind out NDP from given data. GNP = 1000 Net factor income from abroad = -100 Net indirect of fixed capital = 200 Consumption of fixed capital = 20Assume the information below to answer the following questions about the land of POGO. Assume a 2% interest rate on all interest-bearing Pogo assets (assets issued by Pogo), and a 3% interest rate on Foreign assets (issued by Foreign). All figures below are listed in ‘Pogo’ dollars. B = Billion. POGO CONSUMER EXPENDITURES, 2020: $290B POGO INVESTMENT EXPENDITURES, 2020: $125B POGO GOVERNMENT EXPENDITURES, 2020: $25B TAXES COLLECTED BY THE POGO GOVERNMENT: $18B MERCHANDISE EXPORTS, GOODS & SERVICES TO FOREIGN, 2020: $45B MERCHANDISE IMPORTS, GOODS & SERVICES FROM FOREIGN, 2020: $65B POGO LABOR INCOME FROM ABROAD, 2020: $5B INCOME PAID TO FOREIGNERS WORKING IN POGO, 2020: $12B FOREIGN ASSETS OWNED BY PRIVATE CITIZENS OF POGO, START of 2020: $100B POGO ASSETS OWNED BY PRIVATE CITIZENS IN FOREIGN AT THE START of 2020: $50B RESERVES OF FOREIGN NON-INTEREST BEARING ASSETS HELD BY THE CENTRAL BANK OF POGO AT THE START OF 2020: $298B RESERVES OF FOREIGN NON-INTEREST BEARING…
- You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…You are given the following information about an economy: $millionsGDP at Market Prices 1,669.4Imports 290.5Gross Domestic Capital Formation 48.7Income accruing to the Public Sector 39.0Retained Business Earnings 75.9Exports 273.4Subsidies 16.8Factor Payments from Abroad 10.0Capital Consumption Allowance…True or false. As a capitalist economy, the vast majority of U.S. national income flows to the owners of capital.