Question
Given the following data for an economy:
National Income: $700 billion Depreciation: $50 billion Indirect taxes minus subsidies: $30 billion Net factor income from abroad: $10 billion Calculate the GDP at market prices.Solution
GDP = NNP at factor cost + depreciation + Indirect taxes minus subsidies - Net factor income from abroad = 700+50+30-10 = 770 Note – National income is represented by NNP at factor cost and is therefore used directly in the above equation to calculate GDP.
If the firms under perfect competition have different costs, abnormal profits can be earned in the long run only by
A firm maximizes its profit when
Concept of 'Consumer's Surplus' was evolved by
The goods whose demand is not tied with the demand for some other goods are said to haveÂ
 The above curve is a
Diamond-water paradox establishes the fact that
A rightward shift in supply curve indicates
The positive cross elasticity of demand between two products means the two products
Economics of scale means
Market demand for any good is a function of the
