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How does economic system influence the development process?
The development experience of free market or capitalist and command as socialist/communist countries is extremely different. The evidence considered clearly that:
• Command economies have been not capable to deliver sustained economic democracy and development.
• Just Cuba and North Korea manage a command economy and North-Korea standard of living (SoL) is far lower than its free market neighbour, South-Korea
• The former soviet block of countries are currently transitional economies moving by a command to free market system.
A businessman invested $ 4000.00 as his fixed cost in a new venture that produces batteries. Each of these batteries cost $150.00 to manufacture and he sells each battery for $180.
QUESTION (a) Explain what factors might determine the level of investment in an economy. (b) ‘If investment increases it will cause an increase in income. If income increase
Question: (a) Discuss the conditions necessary to achieve Pareto Efficiency. (b) Competitive markets are generally assumed to lead to a Pareto optimal allocation of resource
An online stock trading company makes part of their revenue from clients when the clients trade stocks therefore, it is important to the company to have a good idea of how many tra
Situation: Only a few astute operatives say the crash in real estate prices as the USA entered the summer of 2007. You were one of the few that appreciated that real estate price
What is mean by stabilization policy? Taming the Business Cycle: To decrease the severity of recessions policy efforts undertaken are termed as stabilization policy. a
Is migration a problem? Huge scale rural-to-urban migration places a strain onto city economic systems. As like some examples of: • There is inadequate demand for labour to
#discuss the theory of costs in relation to business operations.you should identify different types of costs and explain how the supply curve is constructed for an organisation?
Is unemployment and underemployment a problem? The cost of unemployment is both: • Economic along with the opportunity cost of lost output raised poverty and inequality
Comparing Production Possibilities Curves
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