What is the opportunity cost of economic growth, Macroeconomics

Assignment Help:

What is the opportunity cost of economic growth?

Opportunity cost measures the cost of an economic option within terms of the next best option foregone.

The government of a developing country only meeting its important wishes may chose to reallocate resources through the production of consumer gods to investment the goods.

1912_Opportunity cost of economic growth.png

Opportunity cost of economic growth: The economy moves from A to B

The short run opportunity cost of HG additional investment is ED lost consumer goods probably essentials. People might starve for additional producer goods.


Related Discussions:- What is the opportunity cost of economic growth

How growth are improved living standards, How growth are improved living st...

How growth are improved living standards The two main benefits of growth are improved living standards and technological advancement. As an economy grows, the output of

Determine in detail about money supply of central bank, Determine in detail...

Determine in detail about money supply of Central bank The central bank will not pay cash when it buys government securities. Instead, it will ask the seller's bank to credit t

Find out the opportunity cost of corn, Outline briefly a.      How peopl...

Outline briefly a.      How people make decisions? b.      How they interact? c.       How economy as a whole works? 1.  Give three examples of important trade offs, th

National icome determination, subjective questions on national income deter...

subjective questions on national income determination

Gross domestic product, GDP is an important indicator of a nation's economi...

GDP is an important indicator of a nation's economic performance. It has many components which contribute to the growth of the economy. Oil is a minor component of GDP and therefor

Price to the government of buying unsold units firms, Consider a market whe...

Consider a market where supply and demand are given by QXS = -12 + PX and QXd = 78 - 2PX. Suppose the government imposes a price floor of $35, and agrees to purchase any and all un

Internatinal trade, HOW CAN A COUNTRY MAINTAIN EQUILIBRIUM GDP IN AFOREIGN ...

HOW CAN A COUNTRY MAINTAIN EQUILIBRIUM GDP IN AFOREIGN TRADE?

Mathematical presentation of indifference curve, Mathematical Presentation:...

Mathematical Presentation: Consider the utility function U = U(x 1 , x 2 ). Differentiating totally, we get the following: dU = U 1 dx 1 + U 2 dx 2 = 0 (as along the indiffe

Production possibilities table for consumer goods, To the right is a produc...

To the right is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts): a. Show these data graphically. Upon what specific assumptions is t

Equilibrium in money markit, equilibrium in money market and derivation of ...

equilibrium in money market and derivation of lm curve

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd