EC 1101 Study Questions Fall 2012 Chapter 5 Market failures‚ public goods and externalities 1. Explain the functions of government in an economy. Why do governments intervene in markets? 2. (a) Using the concept of allocative efficiency‚ explain the meaning of “market failure” and “externality”. Why is this is a type of market failure? (b) Explain the difference between the market equilibrium output and the efficient level of output when there are (i) negative externalities and (ii) positive
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High GDP per capita * Mild and stable inflation * Increase in money supply * Reduction in unemployment | * Appreciation of Krone | Strength GDP per capita Norway’s GDP per capita3 was $40‚034.85 in 2011 (constant 2000 US$) which is among the highest in Europe and being expected to increase more in the coming years4. This is equivalent to 656% of world average that is $6099.56 which can be clearly seen in the graph below. 1. see reference no. 1 2. see reference no. 2 3. GDP per
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In this paper I am going to address that question as well as a few other things such as: Describing the effect on net personal income when the government raises taxes and when the government lowers taxes. Describing how the Gross Domestic Product (GDP) is affected by higher taxes and lower taxes. I will also identify what other economic factors are affected when taxes are raised or lowered‚ and explain the results of these changes. And finally I will explain why in my own opinion the government should
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debts reached 90 percent of GNP. There was a clear urban bias in the development expenditure‚ land reforms were implemented only halfheartedly. External factors‚ particularly the terms of trade for its exports‚ were also adverse. Political instability was an additional handicap. All these resulted in slow growth of economy‚ and slow change in the sectoral composition in terms of the contribution to GNP and in terms of occupational diversification. Share of agriculture in GNP declined only marginally
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Good business research generates dependable data as is described in this report. The Aerospace Industry Economists use the Gross National Product (GNP) as a way to measure our nation ’s income and the overall health of the economy. GDP is the market value of all final goods and services produced in the economy in a single year. One way to figure GDP is to add up the income received by American businesses and households. Another way is to look at expenditures made by the decision-makers in the economy:
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negative effect of external public debt service and positive effect of external public debt stock on GDP growth have been found from this investigation. In short run‚ only external debt service has negative effect but the debt stock does not have any significant effect. Thus the investigation did not find any evidence of debt overhang provided that there is no significant adverse effect of debt stock on GDP growth. But crowding out effect was originated from the fact that there is evidence of adverse effect
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present in Indian economy. Some of these features are discussed below: 1. Low Income: In India GNP (Gross National Product) per capita was $1‚180 in 2009 at current prices‚ roughly one third of the population is below the poverty line. On world scale‚ income inequalities between the developed and underdeveloped countries arc very large. According to the World Hank estimates‚ in 2009 the average GNP per capita of the high income economies was $38‚139 whereas it was $503 in low income underdeveloped
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NEWS STRAITS TIMES Unemployment rate drops 2011/07/06 THE country’s unemployment rate currently stands at 3.1 per cent compared with the 3.4 per cent last year‚ the Dewan Negara heard yesterday. Deputy Human Resources Minister Datuk Maznah Mazlan said the government was fully harnessing its workforce to keep the unemployment rate at four per cent and below. This was because according to international standards‚ this was considered full employment. "According to the Statistics Department
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preferred shares. Gross Domestic Product (GDP) The GDP is monetary value of all goods and services produced in a nation during a given time period‚ usually one year. Basically‚ it’s a tally of everything bought for money during the course of a year. Consumer purchases from a candy bar to a car are counted in the GDP. When business buy computer‚ farmers sell their crops‚ or a corporation exports goods overseas‚ the transaction all increase the GDP. Government spending‚ whether for a highway or
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FUNDAMENTAL FACTORS INFLUENCING INVESTMENT IN MUTUAL FUNDS - EIC APPROACH - A CASE STUDY OF RCAML - Prof. K.Viyyanna Rao* - Ms. Nirmala Daita** ABSTRACT The Indian mutual fund industry is witnessing a rapid growth as a result of infrastructural development‚ increase in personal financial assets‚ and rise in foreign participation. There are many of factors contributing to this phenomenon.
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