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What are the restrictions of Lewis?
The restrictions of Lewis:
• Assumes complete employment in urban regions. Evidence recommend otherwise
• Raised profits may be invested into labour saving capital quite than taking on newly arrived employees
• For many LDCs (Less Developed Countries), rural urban migration levels have been far larger than the formal industrial sector is capability to give jobs. Urban poverty has replaced rural poverty. Newly arrived rural migrants join the informal economy and live into shantytowns.
What is factor endowment problem? Factor endowment Problem: Several LDCs have a poor factor endowment than productivity and incomes both are very low according to world
(a) Describe and discuss the Structure Conduct Performance framework (b) The hypotheses of interest in the Structure Conduct Performance framework are as follows: Hypothesi
explain how inflation could reduce the efficiency with which prices allocate resources.
What causes migration? Rural-to-urban migration is a usual LDC experience. Those are migrates within search of better SoL, those are generally younger, less risk adverse and b
You can buy as many drinks as you want at $1 each. You can also buy as many chocolate bars as you want at $2 each. You have $5 to spend. You must buy whole bars and drinks, that is
What are the limits of national income (NY) statistics in measuring development within a country? National income statistics simply show changes in GDP (Gross Domestic Product)
An agent has a utility function over goods 1 and 2 of the form U = x c 1 x d 2 where c is your 1- digit number and d is your minimum number. The agent's income is equal to you
MC=25+30Q-9Q^2 fixed cost=55 find total cost avarage cost variable cost
What is the failure effectiveness of World Trade Organisation in the promotion of development? Failure effectiveness of World Trade Organisation in the promotion of developmen
1. Consider the market where there is product differentiation with two firms. The firms are choosing prices p1 and p2 and have demands given by q1 = 40 - 0.5 p1 + p2 q2 = 60
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