ECO401 Economics Assignment No .2 Solution Fall Semester 2013

[Vuhelper]

View more random threads:

• MGT211 Introduction to Business Assignment No 01 Semester...
• MTH501 First Assignment idea solution October, fall 2012
• ENG201 Business and Technical English Assignment No.4...
• MTH 101 Calculus And Analytical Geometry Assignment No.1...
• ECO401 First Assignment idea solution October, fall 2012
• ENG301 Business Communication Assignment No .1 Fall...
• CS201 Introduction to Programming Assignment No.1 Solution...
• CS101 Introduction to Computing Assignment No.2 Solution...
• MGT101 Financial Accounting Assignment No.2 Fall 2013 Due...
• CS508- Modern Programming Languages Assignment No. 03...

ECO401 Economics Assignment No .2 Solution Fall Semester 2013


SEMESTER FALL 2012
ECONOMICS (ECO401)
ASSIGNMENT NO. 02
DUE DATE: 21ST JANUARY 2013
MARKS: 20
ASSIGNMENT:
The Case:
By 1949, continuous foreign invasions, frequent revolutions, restorations and civil wars
had left the country of China with a fragile economy with little infrastructure. After three
decades of central planning, it was time for China to emerge from isolation and become
an important player in the world economy. Economic reforms since 1978 have taken
China to a new trajectory of growth. Evolution into a controlled-open economy has
synchronized the movement of macroeconomic variables like growth rate, inflation, and
exchange rate, with the rest of the world. Any policy change in China now has its impact
on the world economy. China is the world’s second largest economy in terms of nominal
GDP and Purchasing Power Parity after USA. It is the world's fastest growing major
economy, with growth rates averaging 10% over the past 30 years. Suppose in year 2000,
Chinese consumption was characterized by the equation, C = 450 + 0.80Y. Government
expenditures were Rs.350 million and total investment was about Rs.220 million. At that
time, China paid Rs.250 million as import payments and earned Rs.350 million as export
revenues.
Requirement:
Part A:
With the help of above information, calculate the following for Chinese economy for the
Year 2000.
a) Equilibrium Output Level.
b) Consumption Level.
c) Saving Level if Taxes are Rs.350 million (By using Injections-Leakages
Approach).
Part B:
Suppose in the next Year 2001, China produced following goods and services. Total
output, unit values and total money values of these goods and services are as under:
Serial
#
Goods and
services
Total output Unit values / prices Total money
value (Rs.
Million)
1 Wheat 150 Tons Rs. 1 million / tons 150
2 Rice 180 Tons Rs. 1 million / tons 180
3 Coal 50 Tons Rs. 1 million / tons 50
4 Iron 70 Tons Rs. 1 million / tons 70
5 Radio 15 Thousand Rs. 1 thousand / unit 15
6 TV set 16 Thousand Rs. 5 thousand / unit 80
7 Doctors 20 Thousand Rs. 1 million / doctor
per annum
20
8 Engineers 150 Thousand Rs. 1 lac / engineer
per annum
15
Assume depreciation cost was Rs.35 million in that year. Calculate:
a) Gross National Product (GNP)
b) Net National Product (NNP)
Marking Scheme:
Part A: (Marks: 5+4+5)
Part B: (Marks: 3+3)
Note:
Provide step wise calculation in Part A and B with the help of formulas.
IMPORTANT:
24 hours extra / grace period after the due date is usually available to
overcome uploading difficulties. This extra time should only be used to meet
the emergencies and above mentioned due dates should always be treated as
final to avoid any inconvenience.
IMPORTANT INSTRUCTIONS/ SOLUTION GUIDELINES/ SPECIAL
INSTRUCTIONS
OTHER IMPORTANT INSTRUCTIONS:
DEADLINE:
 Make sure to upload the solution file before the due date on VULMS.
 Any submission made via email after the due date will not be
accepted.
FORMATTING GUIDELINES:
 Use the font style “Times New Roman” or “Arial” and font size “12”.
 It is advised to compose your document in MS-Word format.
 You may also compose your assignment in Open Office format.
 Use black and blue font colors only.
RULES FOR MARKING
Please note that your assignment will not be graded or graded as Zero (0), if:
 It is submitted after the due date.
 The file you uploaded does not open or is corrupt.
 It is in any format other than MS-Word or Open Office; e.g. Excel,
Power Point, PDF etc.
 It is cheated or copied from other students, internet blogs, books,
journals etc.
Note related to Load Shedding: Please be Proactive!
Dear Students!
As you know that Post Mid-Term semester activities have been
started and load shedding problem is also prevailing in our country
now a days. Keeping in view the fact, you all are advised to post
your activities as early as possible without waiting for the due date.
For your convenience; activity schedule has already been uploaded
on VULMS for the current semester, therefore, no excuse will be
entertained after the due date of assignments, quizzes or GDBs.
Best of Luck!

[Vuhelper]

Idea Solution



P001.JPG

P002.JPG

T.
a
M eesuttu Ecor.roMre Act,vtt
Mathoo\ Mdhod t'4 cl\"4
?a;vt A Ca):
expa-^aa\a \erga- trA €-t^od
c r' One d M.s Clxo:s clo n vr<s { i c-
\-tr
\-:i
i. a
C -- QSo -t o. 3so
So* o.$ + LLo So*
?r*zt
Stoo -- h3o + >>o + jsot too
56oo = \13o + >zo+ 3So\ too
S 6oo = SAoo
c_
{
*J.
S -- qqBo * LLo* 3So* [oo - Q1t" * 3So
3=3eo
Paa,l B Cq) i
Acco,udJL,t? {- proa.qcF ruraethod
tua\'.!- "\dde d o-P pxod^) , bi,a.{) ualu n ,"-h
brYri
g\^r d ftoa'.t u C" N\ P .
qNP -- \So+\?o+ So+lotrs+8o+2o+l{
1\nP-r.,r ut)€
NS{P= GxP - De+
- S?o - iS
? sto
(b) 3 Sb we .pl \\dln , r \. \ti,a- "L€f x'ec^4cta'."n
C+ S + T -- c-+ T. -tr
irq3o* I + 3So = \9so+ zlo-1- 3So 1 too

[Xpert]

kia solution dia hai app nay...

Sponsored Links