Q.: 1: The manuscript for this book was typed for free by a friend. Had I hired a secretary to do the same job‚ GDP would have been higher‚ even though the amount of output would have been identical. Why is this? Does this make sense? A.: 1: If a secretary were hired to type the manuscript‚ they would have had the opportunity to provide a service at a price. We know that each good and service produced and brought to market has a price. That price serves as a measure of value for calculating total
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Chapter 1 (2 & 6 p. 27) 2. What is the maximum amount you would pay for an asset that generates an income of $150‚000 at the end of each of five years if the opportunity cost of using funds is 9 percent? To find the maximum amount‚ we must determine the Present Value (PV) of the $150‚000 over the 5 years. PV=(150000/1.09^1)+(150000/1.09^2)+(150000/1.09^3)+(150000/1.09^4)+ (150000/1.09^5) = $583‚447.69 So‚ if costs exceeded $583‚447.69‚ then the asset would not be worth the price
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economists of our time. Robbins was known for his contributions to economic policy‚ methodology‚ and the history of ideas‚ but made his name as a theorist. Robbins was made famous for his definition of economics‚ "Economics is a science which studies human behavior as a relationship between ends and scarce means which have alternative uses." (The Concise Encyclopedia of Economics 2007) Robbins was able to change the Anglo-Saxon thought economics off its Marshallian process and onto the Continental train
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Assignment | Fundamental of Economic Concept Basic Economics Problems | Faculty Of Science Computer and MathematicsECO 415 : Economics | Prepared By;Appy Hillester Sylvester2010170645CS 226 | Prepared For;Madam Saliza SulaimanDate of Submission;09th February 2011 | | Fundamental Economic Concepts Economic is a social science that studies human behavior as a relationship between ends and scarce means which have alternatives uses. ( L.Robbins ) Economic is basically
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* The author here talks about the fundamental problems in education‚ he emphasizes that it not being an education problem at all. He rather says its more of a social problem between adults and children. * “ The fundamental problems in education is not an educational problem at all: it is a social one. It consists in the establishment of a new and better relationship between the two great sections of society- children and adults” – Dr Montessori * * The education system that exists
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Economic problems. The economic problem‚ sometimes called the basic‚ central or fundamental economic problem‚ is one of the fundamental economic theories in the operation of any economy. It asserts that there is scarcity‚ or that the finite resources available are insufficient to satisfy all human wants and needs. The problem then becomes how to determine what is to be produced and how the factors of production (such as capital and labor) are to be allocated. Economics revolves around methods and
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Major economic problems in the Philippines are very similar to the economic problems in other underdeveloped countries. Some of the major pinpointed problems are the import-export imbalance‚ causing those who specialize in trade and make their living off of imported and exported goods to lose money. The imbalance causes families that are forced to survive off of this small income to wonder if they are going to eat the next week or not. One week there are plenty of orders to keep a family and company
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ECO 405 Week 8‚ Chapter 11: Economic Growth |Slide # |Topic |Narration | |1 |Intro |Welcome to Economic Problems and Issues. In this lesson‚ we will discuss Economic Growth. | | | |Please go to the next slide. | |2 |Objectives |Upon completion
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Key terms: Definition: Opportunity cost The cost of missing out on the next best alternative. Economic goods Goods that are scarce and therefore have an opportunity cost. Free goods Goods that have no opportunity cost‚ e.g. Air Factor market The market for the factors of production that make other goods and services such as labour or raw materials. Free market economy One in which there is very limited government involvement in providing goods and services. Division of labour
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Five economic problems and five social problems of the philippines? social: 1. lack of individualism. don’t need to abandon social structures totally. 2. colonial mentality. royalty‚ status symbols‚ subservience 3. western influence. don’ love their own 4. parinig system 5. authoritarian economic: 1. leaders are mostly landowners who don’t know how to make a profit 2. consumers are lured by too many commercial establishments like KFC‚ McDo‚ Jollibee‚ Levis‚ etc. even those who cannot really
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