Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Macroeconomics Expert

Q1) Kasur is a small farming community near Lahore. For several years most people in kaur have either worked on the farms or owned small businesses, or they have been jobless. Last December a manufacturer of office furniture bought 50 acres of land and announced it would build a new factory. The company would provide work for 250 workers and have a yearly payroll of nearly $6,000,000.

Describe the effects of new factory on the items below. Then place the number of each item on the circular-flow diagram to indicate whether the activity takes place in the product market or resource market

1. The number of people wanting to purchase homes in kasur

2. The sales of clothing and other goods in kasur’s stores

3. The number of people employed in kasur’s stores

4. The number of stores rented in the kasur

5. The number of cars sold at local dealership

6. The wages paid to local construction workers

7. The number of tickets sold at local movie theatre

8. The profit earned by local grocery stores

9. Assume you own a business that sells insurance in kasur. How will the new factory create entrepreneurial opportunities for you?

Q2). Is free market best solution to the fundamental economic problem? Discuss in detail.

Q3). Assume that an economy produces only two goods, X and Y.

a. Draw a reasonable production possibilities frontier for the economy. Elucidate why you drew it as you did.

b. Assume that a new technological advance makes the economy much more productive in producing good Y. Show how this discovery might affect the production possibilities frontier that you drew.  Elucidate.

c. Does this technological change let society to produce more of good X?

d. Pick a point on the original production possibilities frontier and label it A. After the technological change occurs is A an efficient production point?  Why or why not?

e. Elucidate what the opportunity cost of producing more X is at point A before and after the technological change occur

Q4). What describes why millions of economic resources tend to get arranged logically and productively rather than unproductively and haphazardly?

Q5). On average, household in china save 40 percent of their annual income each year, whereas household in US save less than 5 percent. PPC are grown at 9 percent annually in china and 3.4 percent in US. In your view why the difference in growth is rates .describe with the help of graph showing ‘present goods’ and ‘future goods’

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M91555

Have any Question? 


Related Questions in Macroeconomics

Suppose ralph and ed have the only store that sells toilet

Suppose Ralph and Ed have the only store that sells toilet bowls in northern Maine. Their nearest competitor is 211 miles away, and these two men have a reputation for producing high-quality toilet bowls. Graphically ill ...

You have been asked to assist your organizations marketing

You have been asked to assist your organization's marketing department to better understand how consumers make economic decisions. Write a 1,050-word analysis that includes the following: • The impact the theory of consu ...

Consider a market for a homogeneous product with demand

Consider a market for a homogeneous product with demand given by Q=37.5-p/4. a. Suppose that marginal cost for the market equal to 40. Determine the prevailing price, quantity and social welfare (consumer surplus) under ...

Why is it important for the prices of goods to reflect

Why is it important for the prices of goods to reflect their true costs of production? What happens when they do not? What policies could be enacted to internalize the full costs? Illustrate one graphically.

Let the exchange rate be defined as the number of dollars

Let the exchange rate be defined as the number of dollars per Japanese yen. Assume that there is a decrease in U.S. interest rates relative to that of Japan. (Part A) Would this event cause the demand for the dollar to i ...

Take the following information as given for a small

Take the following information as given for a small, imaginary economy: - When income is $10,000, consumption spending is $6,500 - When income is $11,000, consumption spending is $7,300 Then, the multiplier for this econ ...

Jesus told us not to worry about tomorrow because we are to

Jesus told us not to worry about tomorrow because we are to focus on today and we are not promised tomorrow. (Mt. 6:34) Does this mean we should spend as much as we want and not save any for the future? Explain.

Define the says law and give your interpretationdoes

Define the Say's law and give your interpretation. Does everything have a price? Are there some things you would not do regardless of the price? (Remember: prices and money are not synonyms; prices may be non-monetary.) ...

1 which countries consume the most dung and how do the

1. Which countries consume the most dung and how do the energy statistics in the BP Statistical Review account for it? 2. Explain why consumption of a particular energy source typically ceases long before the stock of su ...

1 suppose you are hired to manage a small manufacturing

1. Suppose you are hired to manage a small manufacturing facility that produces Widgets. (Part A) You know that you are operating in a monopolistically competitive market, that is, you are a small part of a large market ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro