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Read the policy brief by Vijaya Ramachandran, Alan Gelb, and Manju Shah entitled, "Africa's Private Sector: What's Wrong with the Business Environment and What to do About It," from the Cgdev website https://cgdev.org/content/publications/detail/1421337/ and use it to answer the following question:
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity. What factors do the authors believe are important to starting and sustaining an entrepreneurial culture in Africa? (If you can compare the advice proffered in this article to the remarks about African economic growth by Sudhir Shetty in his Rethinking Development Policy talk on 10/22, so much the better!)
Explain how advertising can be employed to allow Tots-R-Us to keep price average above cost without encouraging entry.
A monopolist faces demand curve p = 11-Q , where Q is measured in thousands of units. Compute the firm's degree of monopoly power using the Lerner index?
A firm uses two inputs, unskilled labor (L) and capital (K) to produce its product. The wage rate for one unit of labor is $5, while units of capital cost $20.
Is this a good model for unemployment? What would you add to study the problem more completely? What assumption does this model make regarding unemployment
For each of the following concepts provide a definition, a complete explanation as to their significance, and a practical example.
Compute the steady state levels of population. How might we transition between these two steady states and growth during the Malthusian regime?
An open economy has the following pattern of income and domestic expenditure: For each of the three years, evaluate the balance of trade facing the economy.
Draw the demand curve for the bridge crossings. How many people would cross the bridge when there were no toll? What is the loss of consumer surplus associated with charge of toll of $4.00
According to the Heckscher-Ohlin theorem, is Russia capital abundant or labor abundant? Briefly explain. What is the impact of opening trade on the real wage in Russia? Briefly explain.
What is the difference between contractionary and expansionary monetary policy?
Define and describe the difference between the absolute advantage and the comparative advantage.
Suppose the domestic appliances industry faces severe foreign competition, and asks you to prepare a position paper its lobbyist.
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