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Read the policy brief by Vijaya Ramachandran, Alan Gelb, and Manju Shah entitled, "Africa's Private Sector: What's Wrong with the Business Environment and What to do About It," from the Cgdev website https://cgdev.org/content/publications/detail/1421337/ and use it to answer the following question:
Explain why the authors cite ethnically segmented markets as a factor that holds back private sector development and building entrepreneurial capacity. What factors do the authors believe are important to starting and sustaining an entrepreneurial culture in Africa? (If you can compare the advice proffered in this article to the remarks about African economic growth by Sudhir Shetty in his Rethinking Development Policy talk on 10/22, so much the better!)
Explain why user cost, or scarcity rent, arises in the intertemporal allocation of a depletable resource such as minerals, and some types of energy and aquifer water resources.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks. Assume that the relationship between the output ratio and the unemployment rate, U is given by the equation U = 6.0 - 0.5 (output ..
Calculate the equilibrium real wage rate and the equilibrium quantity of labor. Suppose that the nominal wage rate equals 60. In the short-run, aggregate demand and aggregate supply are equal at a price level of 1.0. Compute the real wage rate.
The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.
Suppose two nations are considering specializing in either calculators or personal computers. If solely producing calculators, country A can produce 300 and country B can produce 400.
Write a brief explanation of each of the following terms. import tariff, effective rate of protection
Mention the four assumptions for the Monopolistic competition model.
Assume you hire a furloughed Wall Street analyst to aid you examine your production process, and she uses your historical cost records to estimate that your total cost function is C(Q) = 100 + 2Q + 3.5Q2. Using this equation, answer the following ..
According to the quantity theory of money, what is the effect of increase in quantity of money?
Using the IS/LM/BP model, demonstrate the effect of each of the following changes. Assume that the economy is a small country with perfect capital mobility and a flexible exchange rate.
You will be asked to collect five (5) newspaper articles relating to subjects we are covering in the class. As we cover the various chapters you should be actively searching newspapers/magazines to find articles.
What is the cost of producing additional car when 50 cars are being produced? What is the cost of producing additional care when 150 cars are being produced?
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