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An agent has a utility function over goods 1 and 2 of the form U = xc1 x d2 where c is your 1- digit number and d is your minimum number. The agent's income is equal to your 2-digit number. Initially, the price of good 1 is your median number and the price of good 2 is your individual number. Let the price of good 1 change to your maximum number. For good 1, determine for this price change the
a) Total price effect
b) The substitution effect
c) The income effect
What are the characteristics of the informal sector? The characteristics of the informal sector comprise: • working for yourself quite than an employer, • Small scale ent
Scenario: A client comes to you for investment advice on his $500,000 winnings from the lottery. He has been offered the following options by three different financial institutions
constraints
How static multiplier can be shown diagramatcally
Problem: (a) Define ‘Business Environment'. (b) Briefly distinguish between internal and external environments of business. (c) Discuss on the key components of the gener
QUESTION 1) Explain the term Balance of Payments (BOP) and how a government would intervene to correct a BOP deficit. 2) Explain the protectionist measures that a government
What is good governance? Governance is fundamentally another word for government and is a necessary precondition for development. It is how governments employ their authority
law of diminishing marginal utility assignment
Explain how the economic theories applied in business economics
Is there an optimum population size for a country? Optimum (best) population arises while productivity that is output per person is highest. • An under-populated country ca
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