Jon has taught Economics and Finance and has an MBA in Finance Cite this lesson Opportunity cost is determined by calculating how much of one product can be produced based on the opportunity cost of producing something else. Learn how to calculate opportunity costs to make efficient economical ...
How is the graph of a PPF model in economics shaped? What is the difference between the saving rate in Solow Growth Model and marginal propensity to consume in Keynes theory? Using the Solow-Swan Model, explain why we might expect an economy coming out of a recessi...
How do you calculate the marginal propensity to consume? Explain, in your own words, the concept of diminishing marginal returns. How do you find the point of allocative efficiency? Provide examples of the law of diminishing marginal returns. ...
Describe circular flow model, as applied in economics. How do you calculate opportunity cost in economics? Explain the shape of the short-run aggregate supply curve. How is the graph of a PPF model in economics shaped? How are the long-run Phillips curve and the long-run aggregate supply ...
How does Malthus' theory relate to the lack of sustainability in the economy or the modern structure of the economy? How do you calculate the marginal rate of substitution in Microeconomics? Suppose demand for a commodity can be modeled by p= 10e0.5x and supply of the same quantity can be...
Calculate the marginal propensity to consume if the marginal propensity to save is 0.25. Explain what this value of the MPC means. Explain the notion of diminishing marginal returns to labor in the Short Run. Economists use production functions to: a. define what is t...
310K Understand what the population growth rate is and different population growth rate formulas in various cases. Learn how to calculate the population growth rate. Related to this QuestionExplain how economic growth is shown in...
Government regulation refers to the group of laws and executive orders place by successive governments in a bid to regulate and control how businesses operate. Indeed, most citizens, consumers and civil bodies believe that it is necessary to safeguard public interest. ...
Explain how to calculate the production effect. Explain the relationship between comparative advantage theory and the production possibility curve. How does the price system help allocative efficiency? Explain how prices can act as "feedback mechanism...
maximizing output in this sector. Conversely, if it produces 100 units of butter, resources are allocated solely to butter production. These points on the PPF illustrate the efficient use of resources dedicated entirely to either guns or butter. ...