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1. What is the balance of payments? Why must the balance of payments generally add up to zero
2. Explain how interest rates, exchange rates, inflation, and income change in response to a balance of payments deficit or surplus both in the case of flexible and fixed exchange rates
3. Describe the chronology of events leading up to the LDC debt crisis. What were its main causes and what solutions have been proposed to deal with the problem
4. When does the IMF play a role in lending money to a country? What conditions does it often impose on borrowers? Why?
5. Define and discuss the advantages and disadvantages of foreign aid, foreign debt and foreign investment
6. What are remittances? What are some of the benefits and disadvantages of remittances for developing countries
7. What is 'brain drain'?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..
Explain each of the following using supply and demand diagrams, With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.
The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.
Draw the production possibility curve and a. Define consumer surplus and producer surplus.
The Australian government administers two programs that affect the market for cigarettes
How many tickets to sell to maximize total welfare.
The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled
Depict the von Neumann-Morgenstern utility index u in a diagram
What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution
Calculate gross national product and net national product
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