2. Why isn’t money consider a capital in economics? Capital is a physical asset‚ which can be used to produce goods and services. Money is related to capital‚ in that it can be used to purchase capital‚ but it is not itself capital. The distinction is important if you consider that money can be created or destroyed through the expansion or contraction of credit‚ but this does not create or destroy any real capital. Money is capital. Money is the most common form of capital. Raising capital money
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Perfect competition A perfectly competitive market is a hypothetical market where competition is at its greatest possible level. Neo-classical economists argued that perfect competition would produce the best possible outcomes for consumers‚ and society. Ex:- Wheat‚ rice Key characteristics Perfectly competitive markets exhibit the following characteristics: 1. There is perfect knowledge‚ with no information failure or time lags. Knowledge is freely available to all participants‚ which means
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References: 1. Sexton‚ Robert; Fortura‚ Peter (2005). Exploring Economics. "This is the sum of the demand for all final goods and services in the economy. It can also be seen as the quantity of real GDP demanded at different price levels." 2. ^ O ’Sullivan‚ Arthur; Steven M. Sheffrin (2003). Upper Saddle River‚ New Jersey 07458: Pearson Prentice Hall. pp. 307. 3. Australian Bureau of Statistics‚ Concepts‚ Sources and Methods‚ Chap. 4‚ "Economic concepts and the national accounts"‚ "Production"‚ "The production
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resources financially ‚ we as consumers are now faced with the choice of what to purchase and how much to purchase so that we may satisfy our appetite whilst still remaining well within our allocated budget. This scenario is basically the concept of economics’ placed into practice in one’s everyday life. To the average consumer purchasing products or goods that are relatively close to the product’s expiration date may seem risky‚ hazardous‚ life threatening to one’s health or to the more skeptical individual
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MC equals MR‚ the profit is maximized. From the above table‚ when output level is 140 minutes‚ marginal revenue equals marginal cost ($10000=$10000)‚ so the profit-maximizing level of output is 140 minutes. (d) When the industry exists positive economic profit‚ it will attract new firms to enter into the industry. However‚ no more licenses will be offered by government‚ so no any new firm entering the industry. (e)(i) Collusion is a formal or tacit agreement to limit competition by setting output
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2.0 Factors that Cause Poverty It has many factors that cause to poverty for a country. This happens because on this world‚ it has too many people but just has few jobs and lack of foods for all people to survive. Some of the causes that cause to poverty are overpopulation‚ education‚ wars‚ corruption‚ and lack of resources‚ politics‚ and natural disaster and so on. 2.1 Overpopulation First of all‚ the factor that has cause to poverty is overpopulation. For example‚ Vietnam is one of the countries
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Contents 1. CHAPTER ONE 2 1.1 INTRODUCTION 2 1.1.1 Background 2 2. CHAPTER TWO 5 2.1 LITERATURE REVIEW 5 2.1.1 Definition of key concepts 5 2.1.2 Gender inequality indicators for education 6 2.1.3 Overview of Gender‚ education and economic development 7 2.1.4 Factors affecting gender equality in education. 8 2.1.5 Gender Equality in Education the Ethiopian Contexts 10 3. CHAPTER THREE 12 3.1 ANALYSIS AND FINDINGS 12 3.1.1 Trend of Gender equality in primary education 12 3.1.1.1 Primary
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Chapter 1 The Big Ideas in Economics Think of why some goods should be allocated by money while some not. Why demand curve is downward sloping? Two effects: 1.Substitution effect (dominent) 2.Income effect (small) The demand&supply curve can be read horizontally or vertically. You should be familiar with both ways of reading. Chapter 3 Supply&Demand Concepts: 1.A normal good: a good for which demand increases when income increases. An inferior good: a good for which demand decreases
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In the world of economics‚ the two main recognizable concepts are supply and demand. These two simple lines influence the factors in the free market. This paper examines how the laws of supply and demand influence the process of reaching market equilibrium for USB flash drives. Law of Supply The law of supply states that‚ “other things equal‚ firms will produce and offer for sale more of their product at a high price than at a lower price” (McConnell‚ Brue‚ & Flynn‚ p. 54). The basic determinants
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Projection is of two types – forward and backward. It is a forward projection of data variables‚ which is named forecasting. By contrast‚ the backward projection of data may be named ‘back casting’‚ a tool used by the new economic historians. For practical managers concerned with futurology‚ what is relevant is forecasting‚ the forward projection of data‚ which supports the production of an event. Thus
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