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According to economic growth theory, the level of the GDP and the rate of the real GDP growth rate have different economic implications about economic well-being of a country. If you are given the options, would you rather live in a nation with a high level of GDP and a low growth rate or in a nation with low level of GDP and a high growth rate? Why? B. Economist considers education as an investment that has both private and social benefits. Education is also the major source of human capital, which is the most important form of capital for the long term economic growth. What is the opportunity cost of investing in human capital? Do you think a country can overinvest in human capital? What is the opportunity cost of attending college? Explain. (Macroeconomics)
Repeat these calculations for the third, fourth, and fifth years, assuming that the Government taxes at a rate each year and has noninterest expenditures annually.
With the aid of a diagram explain the difference between monopoly price, average cost pricing, and marginal cost pricing of a natural monopoly. Which is the most efficient and why
Why has the application of the World Bank's standard Structural Adjustment Policies been counter-productive in many developing countries?
For each of the following events, explain the short run and long effects on output and the price level, assuming polycimakers take no action.
Edison Electric Company's president has been arguing that residential electric rates need to be raised relative to industrial rates.
When government becomes heavily involved in tax-transfer activities, how will this involvement affect economic efficiency.
Different products have different elasticities. Heart medication, for example, is inelastic, and corn is elastic.
q. assume that a household in a two-period model has income of 30000 in period 1 and 25000 in period 2 and the interest
Suppose there is an increase in the immigration to the US from around the world (ie. No specific country). Show graphically how this affects the growth rate of both output per capita and total output in the short and the long run. Chart the time path..
For any given level of output:
If the base year is 2009, then the economy s inflation rate is
Elucidate how the Solow Growth Model reacts to an increase in government spending.
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