please help me with these q, better with explanation and steps
6.3 Suppose there are 30 companies in a commercial building. Initially there is no re sprinkler system in the public area of the building. The companies have identical individual demand curve for the re sprinklers which is given by the equation: P = 10 0.5 Q, where P is the price of fire sprinkler and Q is the quantity ofre sprinkler. 3) Explain why the re sprinkler system can be considered as a public good. (Hint: try to explain beyond repeating the denitions.) b) Suppose each re sprinkler costs $40. What is the optimal quantity of re sprinklers to be installed? (Hint: calculate and explain the social marginal benet function of the fire sprinklers.) c) Explain why it is difcult for this commercial building to install the optimal quantity of re sprinklers if there is no central party to coordinate the installation. 7.1 Country T produces rice and vegetable and imports pork. The following table shows the price and quantity of the production and imports in 2017 and 2018. In both years, Country T exports half of the vegetable produced to Country 5. All the imports and outputs without being exported are for consumption within Country T. (For simplicity. no capital investment and no government expenditure are involved in this country.) Use 2017 as the base year. 2017 2018 Price (Mtg) Quantity (billion kg) Price (5R9! Quantity (billion kg! Produced Rice 1 0 50 1 1 55 Vegetable 10 40 10.5 45 Imported Pork 1 0 22 9 25 (a) Calculate the growth rates of real and nominal GDP of Country T for 201 3 over 2017. Why are they different? (b) Calculate the GDP deator of Country T for 2018. (c) Calculate the size of each component under the expenditure approach for Country T in 2018 at current market prices. (Hint: Some components may be zero. Also. make sure that they add up to the nominal GDP you have calculated in part (at) (d) Calculate the consumer price index (CPI) for Country T using 2017 as the base year. Why is it different from the GDP deator calculated in part (b)? 7.3 Country X produces only two final products in 2016: canned salmon fish and truck. The production processes of these two products during the year are described as follows: Production of canned salmon fish: Output Market Required Market value of Stage of Output produced Value of intermediate intermediate production produced by output input input Fresh Local $5 First salmon fishermen million None Zero fish Canned Local $7 Fresh Final salmon factory million salmon fish $5 million fish Production of truck: Output Market Required Market value of Stage of Output produced value of intermediate intermediate production produced by output input input Factory First Engine located in $4 None zero foreign million country Fina Truck Local $12 Engine $4 million factory million During 2016 half of the output of canned salmon fish has been purchased by local households and the other half purchased by foreigners. One-third of the output of truck has been purchased by local firms, another one-third purchased by government and the remaining one-third unsold. a) Discuss how each of the four products (i.e., fresh salmon fish, canned salmon fish, engine and truck) mentioned in the above table contributes to Country X's GDP under the output approach of national income accounting. What is the value of GDP under the output approach? b) Discuss how Country X's GDP in 2016 would be recorded using the expenditure approach of national income accounting. You have to give explanation for each of the relevant products and expenditure categories. c) Suppose the factory which produces engine earns a profit of $0.8 million in 2016 and half of this factory is owned by the citizens of Country X. Calculate the GNP of Country X.7.2 a) A Chinese-owned ice-cream parlour located in the U5. has the following accounting record related to its business during 2018: Total sales revenue $2,400 Total costs include the following items: Wages paid to U.S. workers $500 Wages paid to Chinese workers $300 Interest paid to a US. bank $100 Rent paid to a US. landlord $600 Costs on raw materials imported from Australia $600 Total costs $2,100 (i) What was the value of U.S. GDP contributed by this rm using the expenditure approach? Which component(s) of the expenditure approach was involved? (ii) What was the value of US. GDP contributed by this rm using the income approach? Which componentts) of the income approach was involved? (iii) What was the value of U.S. GDP contributed by this rm using the output approach? (iv) What was the value of this lirm's contribution to the Chinese GNP
