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Less-Developed Countries (LDCs) are caught in a vicious circle of poverty. For output to increase, they must build up capital. To build up capital, they must save and consume less than what they are producing. However, because they are poor, they have little or no extra output available for savings as it must go toward feeding and clothing the current generation. Thus, they are destined to remain poor forever.
How should developed-countries and international institutions assist LDCs to develop and are there unintended consequences?
Suppose that the price of pizza falls from AED 25 to AED 15 per pizza. The quantity demanded increases from 0 to 20 pizzas. The average price is AED 20 per pizza. Calculate the price Elasticity of Demand.
Your dental clinic provides 3,000 exams for private pay patients and 1,000 exams for members of a union. Your fixed costs are $50,000 and your incremental cost is $40. Private pay patients have a price elasticity of demand of -3. What do you charge t..
For each of the following items, identify whether it is included or excluded in calculating this year's GDP. In each instance, briefly explain why. (Note: since you are not responsible in this course for "Measures of Income" section in Chapter 5, non..
how many pineapples will she consume? If her income increases to $120, how many grapefruits will she consume? Are grapefruits a normal or inferior good?
What are the factors which led M&S to internationalize
There are increasing returns to size whenever increasing the output of the business results in: At the output level where MC is just equal to ATC:
You make an investment of $12,000 in an account with an APR of 6% compounded monthly. (A) What is the balance in this account after 8 years? (B) If, after this initial 8 year period, you wish to make equal withdrawals at the end of each year for 5 ye..
Describe how a developing/emerging economy can benefit from trade with a wealthy country even if it has no absolute advantages. How can they benefit from trade with a poor country?
If the price-taking firm was earning zero economic profits before the dynamic efficiency, will the level of profits change after? If so, show the extent of the change.
What are some of the reasons that the U.S. has greater degrees of income and wealth inequality than other high-income market capitalist economies?
Gorton is HIV positive. He is also has severe allergies. The medication he takes to control the debilitating effects of his allergies causes his nasal membranes to dry out, resulting in frequent nosebleeds. Gorton sues based on the Americans with Dis..
q. 1. what contact does natural capital have on economic growth? will it be probable for a country through few natural
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