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Income and Substitution Effects
A fall in price of a good has the two effects: Substitution & Income
-Substitution Effect
- Income Effect
Problem 1: Write short notes on all of the following: (a) Log Linear regression model (b) Lin-Log regression model (c) Individual versus Overall Significance Probl
Explain the term economic efficiency? Answer: Economic Efficiency means full utilization of all available resources in economy i.e. to produce the needed amount of goods and
dicuss the relevance of studing production theory and analysis inn your career as a student of manegerial economics
What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities
Define the concept of cross elasticity of demand
law of diminishing marginal returns does not hold then output of the world can be produced in a flower pot. Explain?
i when should continue to produce in the short run
Dividend The distribution of an organizations earnings to its owners-the stockholders. Cash dividends are most ordinary, although partition can be issued in other forms, such
Motives of regional financial institutions: There are mixed motives for the donor countries to provide development assistance to developing nations. While a desire for poverty
if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de
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