Illustrate the 4th role is the reallocation of resources
Illustrate the 4th role is the reallocation of resources?
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A fourth role is the reallocation of resources comprises provision of public or social goods, such as streetlights, education, national defence and lighthouses. It also comprises government programs which correct misallocation of resources, also it may occur when there are spillover costs or benefits. When spillover costs happen, resource allocation would be more than is socially desirable, because some of the production costs have been passed on to third parties.
Describe GDP gap and Okun’s Law?
Economic Territory: This refers to the region of a country where there is a free movement of goods, capital and human resources.
Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?
Adam Smith’s opinion of an “invisible hand” powerfully implies the meaning that: (w) pursuit of individual self interest must be controlled. (x) most people lose sight of what’s good for society. (y) most peopl
According to Adam Smith nation's wealth is, not the gold this possesses, but somewhat it’s: (1) number of people. (2) capability to give goods for its people. (3) foreign investments. (4) domestic financial capital. (5) militar
Why businesses are not really “free” to produce what they wish?
Why producers not be able to find enough paying buyers for “public goods”?
This is difficult for firms within highly competitive markets to exploit consumers since: (i) consumer advocates organize boycotts that generate bad publicity. (ii) market pressures force fair distributions of products. (iii) the government sets price
Illustrate major economic flows that link U.S. with nations. Provide an example to illustrate each flow. Explain the relationship between the top and bottom flows.
Give a brief introduction of the term Timing Principle?
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