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Ch01 Introduction-to-Economy Multiple Choice Questions 1. In
... 8. How can a group of workers, each specializing in certain tasks, produce so much more than the same number of workers who try to produce the entire good or service by themselves? Adam Smith offered three reasons. List them and briefly describe the rationale behind each. Reference: Explanation: Fir ...
... 8. How can a group of workers, each specializing in certain tasks, produce so much more than the same number of workers who try to produce the entire good or service by themselves? Adam Smith offered three reasons. List them and briefly describe the rationale behind each. Reference: Explanation: Fir ...
chapter 1
... of private gross fixed capital formation (GFCF) has once again surpassed public GFCF since the introduction of the Economic Transformation Programme (ETP) in 2010. At the same time, exports have become more diversified both in terms of products and markets. Meanwhile, the strong financial and bankin ...
... of private gross fixed capital formation (GFCF) has once again surpassed public GFCF since the introduction of the Economic Transformation Programme (ETP) in 2010. At the same time, exports have become more diversified both in terms of products and markets. Meanwhile, the strong financial and bankin ...
Question No: 2 ( M - 1 )
... Ali initially leased one-room space and started a small day care centre with only 4 children and one staff member. But he found that the cost per child is very high. He wants to expand the centre. Which of the following will happen when Ali expand the centre? ►Economies of scale. ► Diseconomies of s ...
... Ali initially leased one-room space and started a small day care centre with only 4 children and one staff member. But he found that the cost per child is very high. He wants to expand the centre. Which of the following will happen when Ali expand the centre? ►Economies of scale. ► Diseconomies of s ...
practice-questions_26_27_28
... E) A one-time tax cut. 27) Which one of the following can create a demand-pull inflation? A) Higher wages negotiated by unions. B) A cut in the interest rate. C) A sharp increase in the price of oil. D) A decrease in government expenditure on goods and services. E) A decrease in investment as a resu ...
... E) A one-time tax cut. 27) Which one of the following can create a demand-pull inflation? A) Higher wages negotiated by unions. B) A cut in the interest rate. C) A sharp increase in the price of oil. D) A decrease in government expenditure on goods and services. E) A decrease in investment as a resu ...
Topic 7: National Income
... Care must be taken to avoid double counting, i.e. counting the same output more than once, e.g. when the output of one firm, steel, becomes the input of another, cars. Only the value added to each stage of production, i.e. the value of work done by each producer, should be included. ...
... Care must be taken to avoid double counting, i.e. counting the same output more than once, e.g. when the output of one firm, steel, becomes the input of another, cars. Only the value added to each stage of production, i.e. the value of work done by each producer, should be included. ...
handout Solow model
... A. Optimal consumption, and saving by a young person: AK: chapter 2. B. Completing the closed-economy OLG-model: AK, Ch. 3 C. Allowing for population growth in this model: AK, appendix to ch.3. D. More in-depth analysis of the choices of the household: Regarding saving the household may receive inco ...
... A. Optimal consumption, and saving by a young person: AK: chapter 2. B. Completing the closed-economy OLG-model: AK, Ch. 3 C. Allowing for population growth in this model: AK, appendix to ch.3. D. More in-depth analysis of the choices of the household: Regarding saving the household may receive inco ...
Matthew 0. Shapiro Working Paper No. 2146
... economy is subject to both aggregate supply and demand shocks. If the Keynesian view that demand factors are the major determinants of output fluctuations at business cycle frequencies is correct, then one would expect to see a positive correlation of price and quantity in the aggregate data. ...
... economy is subject to both aggregate supply and demand shocks. If the Keynesian view that demand factors are the major determinants of output fluctuations at business cycle frequencies is correct, then one would expect to see a positive correlation of price and quantity in the aggregate data. ...
Economics R. Glenn Hubbard, Anthony Patrick O`Brien, 2e.
... •reduces the purchasing power of monetary wealth •reduces real money balances and raises interest rates •higher interest rates appreciate currency and further reduce net exports •A rise in the price level reduces AE and reduces Y ...
... •reduces the purchasing power of monetary wealth •reduces real money balances and raises interest rates •higher interest rates appreciate currency and further reduce net exports •A rise in the price level reduces AE and reduces Y ...
THE END OF AUSTERITY?
... potential for Britain to reform its system of regulation and seek new trade deals, but it also creates the risk of new barriers on trade with Europe and reducing the competitive pressure on the domestic economy. Before the referendum, a majority of studies predicted a negative impact on long term gr ...
... potential for Britain to reform its system of regulation and seek new trade deals, but it also creates the risk of new barriers on trade with Europe and reducing the competitive pressure on the domestic economy. Before the referendum, a majority of studies predicted a negative impact on long term gr ...
Supply and demand - David E. Harrington
... changes in complementary and substitute goods, market expectations, and number of buyers. This would cause the entire demand curve to shift changing the equilibrium price and quantity. Note in the diagram that the shift of the demand curve, by causing a new equilibrium price to emerge, resulted in m ...
... changes in complementary and substitute goods, market expectations, and number of buyers. This would cause the entire demand curve to shift changing the equilibrium price and quantity. Note in the diagram that the shift of the demand curve, by causing a new equilibrium price to emerge, resulted in m ...
Income Inequality, Fertility, Human Capital Accumulation and
... It is also worth mentioning that the nature of this mechanism implies that each period corresponds to one generation, so this model predicts effects on growth rates in the long run. In fact, the authors state that the model can explain the evolution of income, fertility and inequality in the last 20 ...
... It is also worth mentioning that the nature of this mechanism implies that each period corresponds to one generation, so this model predicts effects on growth rates in the long run. In fact, the authors state that the model can explain the evolution of income, fertility and inequality in the last 20 ...
Document
... GDP ratios declining. Clearly, however, a large part of the improvement was due to cyclical factors and a number of Member States continue to have significant challenges with regard to the long-term sustainability of public finances as evidenced by Table 1 below. Clearly, deficits are increasing as ...
... GDP ratios declining. Clearly, however, a large part of the improvement was due to cyclical factors and a number of Member States continue to have significant challenges with regard to the long-term sustainability of public finances as evidenced by Table 1 below. Clearly, deficits are increasing as ...
Frictionless Models in a World Full of Frictions
... called “animal spirits,” may create frictions (disequilibrium or partial equilibrium) in the model, at least in the short run.4 As a result of animal spirits, one segment of economic agents may be more optimistic (or pessimistic) about the economy than another segment of agents. This optimism (or pe ...
... called “animal spirits,” may create frictions (disequilibrium or partial equilibrium) in the model, at least in the short run.4 As a result of animal spirits, one segment of economic agents may be more optimistic (or pessimistic) about the economy than another segment of agents. This optimism (or pe ...
Chapter 29 Key Question Solutions
... a. What is productivity in this economy? b. What is the per-unit cost of production if the price of each input is $2? c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction did the $1 increase ...
... a. What is productivity in this economy? b. What is the per-unit cost of production if the price of each input is $2? c. Assume that the input price increases from $2 to $3 with no accompanying change in productivity. What is the new per-unit cost of production? In what direction did the $1 increase ...
v. ongoing changes in the business cycle
... to distinguish between changes in impulses (or shocks) and changes in factors that affect their transmission through the economy. It seems likely that part of the reduction in volatility stems from the fact that the size and nature of shocks have changed over time. In particular, the 1970s and early ...
... to distinguish between changes in impulses (or shocks) and changes in factors that affect their transmission through the economy. It seems likely that part of the reduction in volatility stems from the fact that the size and nature of shocks have changed over time. In particular, the 1970s and early ...
FP MP FP MP FP MP
... 50. Which of the following will most likely occur during the expansionary phase of the business cycle? A. Real GDP rises and unemployment falls. B. Real GDP rises and unemployment rises. C. Real GDP declines and inflation rises. D. Interest rates rise and the number of business failures rise. E. In ...
... 50. Which of the following will most likely occur during the expansionary phase of the business cycle? A. Real GDP rises and unemployment falls. B. Real GDP rises and unemployment rises. C. Real GDP declines and inflation rises. D. Interest rates rise and the number of business failures rise. E. In ...
View/Open
... studying the interdependence of production sectors in an economy and identifying major sectors and financial flows between them, over a stated time period (usually a year). Within a macroeconomic framework, input-output modeling can be used for structural analysis, technical change analysis and fore ...
... studying the interdependence of production sectors in an economy and identifying major sectors and financial flows between them, over a stated time period (usually a year). Within a macroeconomic framework, input-output modeling can be used for structural analysis, technical change analysis and fore ...
Ragnar Nurkse's balanced growth theory
The balanced growth theory is an economic theory pioneered by the economist Ragnar Nurkse (1907–1959). The theory hypothesises that the government of any underdeveloped country needs to make large investments in a number of industries simultaneously. This will enlarge the market size, increase productivity, and provide an incentive for the private sector to invest.Nurkse was in favour of attaining balanced growth in both the industrial and agricultural sectors of the economy. He recognised that the expansion and inter-sectoral balance between agriculture and manufacturing is necessary so that each of these sectors provides a market for the products of the other and in turn, supplies the necessary raw materials for the development and growth of the other.Nurkse and Paul Rosenstein-Rodan were the pioneers of balanced growth theory and much of how it is understood today dates back to their work.Nurkse's theory discusses how the poor size of the market in underdeveloped countries perpetuates its underdeveloped state. Nurkse has also clarified the various determinants of the market size and puts primary focus on productivity. According to him, if the productivity levels rise in a less developed country, its market size will expand and thus it can eventually become a developed economy. Apart from this, Nurkse has been nicknamed an export pessimist, as he feels that the finances to make investments in underdeveloped countries must arise from their own domestic territory. No importance should be given to promoting exports.