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When there is a positive expected rate of inflation (i.e., an expected and sustained increase in the levels of all prices), the Benefit Cost Ratio of a proposed project will take on different values depending upon whether one calculates it using current dollars or constant dollars.
Define
what are current dollars ?
What is the theory of Second Best? Prove the theorem with the help of a diagram.
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Definition of Pareto Optimal Allocation
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Illustrate the content in the rational consumer? Content in the rational consumer: a. How to spend income onto goods and services? b. Why maximizing usefulness? c. Wh
The concept of opportunity cost occupies a very important place in modern economic analysis. The opportunity cost of any good is the next best alternative goods that are sacrificed
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