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Are weaknesses of financial markets a problem?
Problem:
a. Potential entrepreneurs require funds to finance new projects. Financial institutions, as like banks, are middle men who channel funds through savers to borrowers. Feeble financial markets mean entrepreneurs have limited access to savings and therefore cannot finance investment which increases productive capacity and thus facilitate growth.
b. The poor in specific lack access to traditional formal financial institutions as like banks and that cannot elevate loans for small family businesses.
Implications of financial markets a problem: governments and NGOs to promote microfinance, particularly in the poorest rural areas.
What is the Lewis Model? The Lewis Model argues economic growth needs structural change into the economy whereby surplus labour within traditional agricultural sector along wit
1. A monopolist faces the industry demand Q=400-0.5 p and has constant marginal costs of 8, with no fixed costs. a) What is the monopoly price? What is the monopoly quantity?
What is urbanisation? Urbanisation arises while an increasing proportion of the population live into cities, suburbs or towns. All cities are attractive to potential migrants s
General Agreement on T arif fs and Trade (GATT) A multilateral treaty, the basic goals of which are: (1) to liberalize and promote world trade via multilatera
A1. Given the following production function Level of fertilizer Level of maize 0 0 1 44.9 2 83.6 3 110.1 4 127.3 5 136.9 6 139.9 7 137.1 8 129.2 a) Calculate the APP, MPP and elas
Aska) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether consumers regard the c
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explain law of production
What is poverty? Poverty is a complicated multidimensional model measured by using a range of indicators. It is about disparities into the distribution of power, opportunity a
How much power or influence does a U.S. President versus a company CEO actually have in a free enterprise system, when it comes to producing jobs or the decision to manufacture co
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