A)Geraldine wanted a compensation for risk bearing of $8,000 in order to run a tuition centre. Geraldine pays the rent of $4,000 a year, and her total revenue is $18,000 a year. She has also sacrificed $4,000 a year rental income she could have earned by renting her own building to someone else. She borrowed $1,000 at 10 per cent a year to buy tuition centre furniture. Depreciation costs were negligible. Calculate Geraldine's annual explicit costs, implicit cost and economic profit.

B)Following data describe a hypothetical economy. Government expenditure $300 billion, saving $200 billion, official reserves $5 billion, net foreign investment $50 billion, net taxes $250 billion and investment $225 billion. Calculate the current account balance, the capital and financial account balance, the government sector balance, and the private sector balance.