Answer:
Investment is $50 million as shown below.
The national savings is -$150m as government spent more than it received in taxes.
The national savings and the investment moving in different directions shows that the economy is running a deficit budget
Explanation:
The formula for computing GDP is given as:
GDP = C + I + G + (Ex - Im)
Where C=Consumption
I=investment
G=Government expenditure
Ex=Export
Im=Import
In this case,neither export nor import is applicable
The formula becomes:
GDP=G+I+C
Rewritten I=GDP-C-G
I=750-300-400
I=$50m
National savings is the difference between what government in taxes and government exenditure.
National savings =T-G
National savings=250-400
National savings=-150m
Answer:
yes. at a $5 cost, he breaks even and is indifferent. he necessarily turns away business when the cost of the additional unit exceeds the income.
Explanation:
To maximize profits, a firm should continue selling until the marginal revenue product equals the marginal cost of the product. Marginal revenue product is the additional revenue from the sale of an extra cost. Marginal cost is the extra expense associated with the production of an additional unit.
Rodrigo should accept that extra business. His marginal revenue product from additional business equals the marginal cost. He will not make an accounting profit or loss but may gain a long term customer. He should decline any additional business only if the marginal cost is greater than the marginal revenue product.
Answer:
FALSE
Explanation: GDP( GROSS DOMESTIC PRODUCT) is a Macroeconomics concept which means the total value of a country's product calculated within a specific time.
REAL GDP: is a measure of the values of a country's products adjusted according to inflation.
POTENTIAL GDP is theoretical concept which is the value of what a country can produce at a constant inflation rate.
When REAL GDP IS GREATER THAN POTENTIAL GDP THE COUNTRY IS AT MORE THAN FULL EMPLOYMENT.
Answer:
N. Most countries have had little fluctuation around their average growth rates during the past 120 years.
Explanation:
" Both measures reveal the same thing: between 1960 and the late-1990s, there was a widening of the world income distribution, at least when each country is a unit of observation. In the last decade or so, this pattern seems to have stabilized"
Reference: Jones, C. I. (2016). The facts of economic growth. In Handbook of macroeconomics (Vol. 2, pp. 3-69). Elsevier. p. 37
