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What is the meaning of Capital - Gross domestic product
By capital we characteristically mean manufactured goods which are used to produce other goods and services though are not used up in production process (like machines and computers). Sometimes we use the term fixed capital rather than capital to distinguish capital from financial capital, which comprises bank deposits, bonds, stocks and other assets. Fixed capital is sometimes divided into physical capital and immaterial capital like individual capital (talent, knowledge and skills) and social capital.
Assume a sudden collapse in the stock exchange of an economy is expected to reduce the future profitability of the firms of the economy. Construct loanable funds market in a c
What are long run and short run? Long run: It is the time period wherein all inputs cannot be fixed. Short run: It is the time period within which at least one in
An economy has the following parameter values: s ?=.3,d ?=.1,A ?=1,andL ?=100.2 The economy begins at steady state but at some point is attacked by Godzilla, destroying 70% of the
Process to control inflation rate The belief that control of inflation must be the primary economic objective of government can be traced back to neo-liberal revolution that st
take one set ( lk& output) to prove
As is the case with the supply and demand function for a single business firm determining the equilibrium price and output for its product, the aggregate supply and aggregate deman
what is the difference between classical and non-classical model
This economics of scale exist for all of the following reasons except: a. bureaucratic inefficiencies b. management problems c. failures in information flows d. firm size is to
Assess the impact of transaction costs as they apply to the Coase Theorem. Evaluate how government assignment of property rights impacts free market exchanges.
In 2001, Puerto Rico enacted a law that requires specific labels on cement sold in Puerto Rico and imposes fines for any violations of these requirements. The law prohibits the sal
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