entry into these industries is largely unrestricted by government’s rules and regulations. One example of an MPC firm is the hawker stall. The set-up cost including the rental cost is low and due to the small-scale production of food‚ there is limited scope for EOS that act as a BTE. This weak BTE gives rise to the large number of hawker stalls being set up. With so many hawker stalls present‚ each hawker stall has a relative small share of the total food market. Thus‚ each hawker stall has only
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Chapter 1 Introduction Multiple-Choice Questions 1) The best definition of economics is A) how choices are made under conditions of scarcity. B) how money is used. C) how goods and services are produced. D) how businesses maximize profits. Answer: A Level of Difficulty: Easy 2) Managerial economics is best defined as the economic study of A) how businesses can make the most profits. B) how businesses can decide on the best use of scarce resources
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economics central to an understanding of the problems of development? It is because that the development of a country depends on economic factors. Economics helps you to interpret how a country is developing‚ economic policies of a country that determine whether or not it develops and how fast it develops if it performs. In addition‚ economics helps you to understand how wealth and finance are distributed‚ and the causes and effects of borrowing and lending. Problems of development are like not having enough
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entry + No NPCF easy to switch. 2. Increase P slightly above market P‚ no sales demand is perfectly elastic. 3. D curve is horizontal at the P determined by the intersection of market S&D curves Profit Maximzing decision 1. Since MR=MC 2. Set P (price) = MC 3. MR curve = Demand curve 4. Firms can sell all they want at this market price Q* is the profit maximizing level of output. 1.For output < Q*‚ P < MC. Increase output -->increase revenue more than cost-> More
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Econ Answers Chapter 3 The price of train travel increases by 10% and the demand for train travel falls by 12.5%. The price elasticity of demand for train travel is – -1.25 The short run (retail) supply of freshly cut flowers is much less elastic than that of pot plants because: -florists cannot keep freshly cut flowers as long as pot plants If demand drops to zero at the slightest increase in price‚ demand is: - Perfectly elastic Price elasticity of supply will be greater when: - firms hold large
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economic policies? One of the major reasons for why the GMD lost the civil war was because of their economic mismanagement‚ which then left the same problems for Moa and his government to deal with. So it is worth pointing out that it was not Mao who started the economic mess‚ but whether he helped to clear it up is what I hope to find out. The problems he faced included the hyper inflation‚ mass poverty across the country and a large debt owed to the west. Mao’s aims for his economic policies were
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Money Labor Tools and machinery | 5. (TCO 1) A movement along the production possibilities curve would imply that (Points : 1) | the labor force has grown. productivity has increased. productivity has declined. society has chosen a different set of outputs. | 6. (TCO 1) Which would not be characteristic of a capitalist economy? (Points : 1) | Government ownership of the factors of production Competition and unrestricted markets Reliance on the market system Free enterprise and choice
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Economics and Macroeconomics Discussion Questions 1 Explain why both nations with high living standards and nations with low living standards face the problem of scarcity. If you won $1 million in a lottery‚ would you escape the scarcity problem? You would not escape the scarcity problem even if you won $1 million in a lottery because the problem of scarcity will always be present. There will always be unlimited wants that cannot be satisfied due to limited resources. 2 Why is money not considered
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how to best produce them. Daniel Defoe’s [1659 (?60)-1731] Robinson Crusoe [1719] was a tale of a solitary individual‚ endowed with scarce resources‚ and the challenges he faced. When Friday enters the story‚ their lives and the allocation problem are altered. When individuals live in social groups it becomes necessary to distribute the goods among the individuals as well as choosing which goods and services to produce. In the jargon of the economist‚ it is necessary • • • to
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News Article Analysis Topic: Demand and Supply Headline: Used- car shortage looms as curbs bite Source: The Strait Times Date: 25th May 2013 Summary Supply of used-cars has decreased from 7000 to 2400 because MAS (Monetary Authority of Singapore) lifted loan curbs on these vehicles for 60 days. Moreover‚ suppliers are unable to increase supply of used cars since owners are not selling due to future loan restrictions. Under the old scheme‚ car buyers can borrow up to 100 percent of the purchase
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