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Examine the role of foreign direct investment (FDI) for developing countries
Explanation of foreign direct investment as the direct ownership of capital in another country by a firm - for instance establishing a subsidiary production plant abroad. Foreign direct investment inflows help developing countries by making accessible capital which may not be available domestically, whereas transferring technology, skills and knowledge.
Mikes' preferences for consumption and leisure may be represented by the Utility function: u(C, L) = ( C-200)*(L-80) . His marginal utilities of leisure and consumption are (C-200
STRUCTURE OF NATIONAL INCOME: The structure or composition of national income of an economy explains the relative significance of the different producing sectors in an economy
How do we measure economic growth and why do we need economic growth? (ii) What can governments do to stimulate economic growth and create jobs? (provide some current examples) (ii
Technical Economies: They are economies that accrue from the use of large machines with emphasis on full utilization and efficiency in production. First, there are some equip
What is "high-powered money"? The "high-powered money" is the similar as monetary base, which is defined, at the minimum, as the sum of the currency in circulation (banknotes
Consider 2 firms i=1,2 producing quantities q1 and q2 respectively. Let the market price be given by P=a-b(q1+q2). Firm 1''s Marginal cost c is common knowledge but 2''s cost is no
Economies of scale are advantages obtained from a company becoming large and diseconomies of scale are additional costs inflicted because a firm has become very large. The causes
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MRTS and Marginal Productivity The change in output from change in labor equals: The change in output from change in capital equals
Explain the micro and macro economic issues that can be represented on the PPC
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