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How do we evaluate the value of money?
Supply and demand verifies the value of a currency. If demand is high, the value rises, and vice versa. Factors that affect supply and demand contain the following: • Interest rates • Inflation • Balance of trade • Economic growth • Market speculators • Government budget deficits/surpluses
Rational Expectations- Inflation Unemployment Trade-off : Now, consider what happens if we suppose that workers have rational expectations about the rate of inflation First, th
What is a natural monopoly Define natural monopoly as a situation where the advantages of scale a fixed costs are so high that it is impossible to fully exploit them. MC and AC
The government has undertaken a highway bridge project that was originally projected to cost $2 million and provide benefits of $2.5 million. Unfortunately, the costs have been mu
Economies of Scale
regression line drawn as Y=c+1075x, when x was 2 and y was 239, given that y intercept was 11. calculate the residual
Functions and Resources of the Bank The main functions of the Bank are as follows: • to assist in reconstruction and development of the territories of it member-governmen
what are the recommendations for effective economic planning?
Over the course of modern American economic history there have been market failures, various social problems, and other complexities that have resulted in certain resource markets
Budget Constraints * The Budget Line - The budget line indicates all the combinations of 2 commodities for which total money spent equals the total income. * The Budget
explain abnormal profits and normal profits
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