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For a developing country to grow, it needs capital. The major source of capital in most countries is domestic saving, but the goal of stimulating domestic saving usually is in conflict with government policies aimed at reducing inequality in the distribution of income. Comment on this trade-off between equity and growth. How would you go about resolving the issue if you were the president of a small, poor country?
Explain the difference between inferior goods and normal goods. As a developing economy experiences increases in income (measured by GDP), what do you predict will happen to the demand for inferior goods. Explain the theory that education acts as a..
Show graphically the amount of the change that is due to the substitution effect and the amount of the change that is due to the income effect.
This solution will focus on the negative impacts of NAFTA from two main fronts: the negative impact on trade and negative impact on employment.
Explain how many additional workers do you think will file umemployment claims in your state
Determine the pros and cons of optional strategies to tackle a foreign market, such as acquisition of a local company, direct investment in production
Let a company's demand be given by: Q=100-P. Let company's marginal cost be $2 per unit of production. Solve for the firm's marginal revenue equation and optimal output or price combination.
Providing the current situation with General Motors, our team is recommending that they (GM) reduce their current operations in order to maximize profits.
The Alpha Corporation is a member of the lamp industry, which is perfectly competitive. The value of a lamp is $50. The company's total cost function is:
Compare and contrast the monopolist and the monopolistic firm Monopolistic competition is an inefficient form of organisation. Discuss
use the long-run model of a small open economy to illustrate graphically the impact of this decline in consumer confidence on the exchange rate and the trade balance.Assume the country starts from a position of trade balance.
Some people have suggested that forced population control is an efficient means of decreasing the Tragedy of Commons associated with our clean air and water resources.
Are retail gasoline prices essentially equilibrium prices? Why or why not? In most markets, are prices typically at the equilibrium? Why or why not? What might keep prices from moving to the equilibrium?
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