bulging downward or linear (straight)‚ depending on a number of factors. A PPF can be used to represent a number of economic concepts‚ such as scarcity of resources (i.e.‚ the fundamental economic problem all societies face)‚ opportunity cost (or marginal rate of transformation)‚ productive efficiency‚ allocative efficiency‚ and economies of scale. In addition‚ an outward shift of the PPF results from growth of the availability of inputs such as physical capital or labour‚ or technological progress
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investment firms increase. We can infer that the saving function will: a) Shift to the right. b) Shift to the left. c) Remain unchanged. d) None of the above. ??33. The cost of producing ideas is a ________ cost. a) Variable. b) Marginal. c) Opportunity. d) Fixed. ??37. Which of the following statements is inaccurate? a) The growth rate of income per capita is the sum of the growth rate of labour productivity per hour and the growth rate of hours worked per person. b)
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What is Economics? Economics is the study of choices Choices must be made because resources are scarce Make a list of all the stuff you like to acquire assuming unlimited income Dr. S Home on ICWW Tons of boats F-350‚ Club Cab Season tickets to NYY‚ NJ Nets‚ NY Giants Condo in NYC Tickets to Cup Races Mobile Home Triumph TR-6 Toyota Landcruiser Realistic income Home near ICWW A boat Occasional tickets Toyota 4 Runner Choices mean we make trade-offs Opportunity Cost Informal
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Answers: of the negative externalities associated with these goods. it is unlawful for private firms to provide public goods. private markets will never provide goods that they know the government could provide. the private marginal cost is less than the social marginal cost. Correct private markets will never provide goods at a price of zero‚ which is the efficient price. Question 2 0 out of 1 points A common-property resource is one that is Selected Answer: Incorrect [None Given] Answers:
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each of the four optimal bundles given in the table‚ while the demand curve plots the optimal quantity of wine against the price of wine in each of the four cases. See the diagrams below. 2. An individual consumes two goods‚ clothing and food. Given the information below‚ illustrate both the income-consumption curve and the Engel curve for clothing and food. |Price |Price |Quantity |Quantity |Income | |Clothing
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INEALSTIC DEMAND Student Name Institution Inelastic Demand Inelastic demand is a situation whereby a one per cent change in price of a commodity leads to less than one per cent change in quantity demanded by the consumers. Products that exhibit inelastic demand have an almost constant demand no matter the change in prices. Figure 1: Diagram illustrating inelastic demand As shown from diagram above‚ the price changes from P1 to P2 and quantity fall from Q1 to Q2. The
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CARIBBEAN EXAMINATIONS COUNCIL Caribbean Advanced Proficiency Examination CAPE ® ECONOMICS SYLLABUS Effective for examinations from May/June 2010 CXC A20/U2/09 Published by the Caribbean Examinations Council All rights reserved. No part of this publication may be reproduced‚ stored in a retrieval system‚ or transmitted in any form‚ or by any means electronic‚ photocopying‚ recording or otherwise without prior permission of the author or publisher. Correspondence related to
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1. PRINCIPES OF ECONOMICS-MANKIEW CHAPTER 1- QUESTION FOR REVIEW (18) No 3. What is inflation and what causes it? = Inflation is an increase in the overall level of prices in the economy. Inflation happen because culprit is growth in the quantity o money when a government creates larges quantities of the nation’s money‚ the value of the money. No 5. Explain the two main causes of market failure and give an example of each! = Externality‚ is the impact of one person’s action on the well being
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The notion of paying one set cost for ’unlimited’ quantities of a good or service is certainly appealing‚ and that appeal is exactly what all-you-can-eat (AYCE) restaurants take advantage of. Gobi Brighton‚ an all-you-can-eat barbeque restaurant in England‚ offers unlimited servings of Asian and Middle-eastern foods for one fixed price of 12 pounds. Of course‚ no customer will actually eat an infinite quantity. Taking this factor into account‚ and given the various costs the restaurant must pay to
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of microeconomics. The way we consume items‚ products or eatables in our daily live is all related to utility. For instance when we consume junk food it gives utility to us‚ when we listen to music on our iPods it provides utility to us or even when we read from a book we are getting utility out of that book. Utility basically satisfies our wants. In the examples above our want for hunger‚ entertainment and knowledge are all being satisfied. b) Diminishing Marginal utility is another core theory
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