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Sources of Economic growth:
Human resources: Investment in human capital is considered as an important factor for economic growth. This is done by increasing the quality of a nation’s labour force through education and training in advance technology. It has also been proved that literacy not only improves productivity but also makes an individual more adaptable to new challenges.
Natural resources: Availability of natural resources (land and mineral) to a nation is also a vital source of growth. It is not only the availability of these resources but the extent to which they are exploited. It should be noted that for the exploitation of these resources care should be taken not to sacrifice the environment. This means that growth through exploitation of these resources should be sustainable and maintain environmental quality.
Securitization: A process in that financial relationships (like loans) are converted into financial securities or assets (like bonds) that can be bought and re-sold in securities m
the diagram used to illustrate abnormal and normal progits
a) The production function of certain firm is given as Q = 40 K 1/2 L 3/4 A unit of capital and labour costs Kshs 44 and Kshs 36 respectively. The firm would like to maxim
Income and Substitution Effects A fall in price of a good has the two effects: Substitution & Income -Substitution Effect Consumers will tend to buy more of the good
Price Elasticity of Demand is explained below: Price elasticity of demand/require is the percentage change in the quantity demanded with respect to the percentage change in the
What are the properties of the profit function? Properties of the Profit Function: The properties specified below follow solely by the assumption of profit maximization. No
This involves the characteristics of the production human as well as non human using the product concerned. For example it may pertain to the number and characteristics of children
why men and womens indifference curves are different
(a) What are the problems associated with R 2 and how can adjusted R 2 solve them? (b) If the regressors in an equation are highly correlated, which measures can be used to
Much of undergraduate macroeconomic theory is discussed on the assumption that, in the short run, the expectations of economic agents about the future values of macroeconomic varia
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