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Explain how getting right price affected the market for promoting development.
Getting prices right implies:
• Abolishing price controls as well as subsides on fundamentals. Higher prices which deny the very poor access to essentials as like clean water and electricity.
• Privatisation which can result into potential windfall profits to wealthy domestic as well as foreign speculators
• Deregulation which weakens the rules which defend consumers and workers from exploitation and causes environmental through unchecked negative externalities damage.
QUESTION 1 (a) Suppose the government decides to implement a minimum wage to help low-income workers. How will the minimum wage affect the demand for labor and what does this i
concep of ni
Are international capital flows a problem? Problem: Capital flows can have an adverse outcome onto: a. Balance of payments (BoP): Shortly term capital inflows can be like:
Question: (a) Assume that a market is in equilibrium and all investors agree that the return on any diversified portfolio P is equal to R P = a p + b p 1 F 1 + bp 2 F 2
In AS/AD model monetary polices is seen to working primly through its effect on interest rate. There are some example to understand to interest policy impact on exchange rate an
How is Harrod-Domar model used in planning? The Harrod-Domar model is helpful to government for setting target rates for saving required to deliver a specified rate of economi
Describe the terms inflation, deflation, and inflation rate and price stability. Inflation and Deflation: a. An increasing aggregate price level is called as inflation.
definition of money markets
Discuss, using examples the economic consequences of a sudden monopolization of an industry that had been previously been competitive
features of monopolistic competition and oligopoly
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