1) Explain why the Consumption and Production distortions are indeed a loss to society, and what is wrong with the logic that leads to the apparent paradox. The two deadweight triangles associated with the graphical analysis of a tariff are the Consumption distortion and Production distortion losses. It is easy to understand why the Consumption distortion constitutes a loss for society. After all it raises the prices of goods to consumers, and even causes some consumers to drop
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------------------------------------------------- Shrey Tandon 12P047 ------------------------------------------------- Shrimoy Tripathy 12P048 Contents Introduction 3 Some industry trends of last 20 years: 4 1. Growth in Sales relative to the Real GDP 4 2. Personal Disposable Income 5 3. Petrol Prices 5 4. WPI of Two wheelers 6 Segment wise Price Trends 7 Regression Analysis 8 Elasticity 10 Price Elasticity 10 Income Elasticity 11 Cross-Price Elasticity 11 Analysis 11 Market
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Living On The Edge BMI View: This year will be of pivotal importance for Argentina and Venezuela, with potential knock-on effects for the entire region. Both countries are on a highly unsustainable macroeconomic trajectory, which could lead to an economic and political implosion.
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and real GDP is reflected by correlations and cross correlations. Secondly, forecasts are made based on past figures and with the help of moving average method. 4 2 0 Apr-2004 May-2008 Sep-2003 Nov-2004 Aug-2006 Mar-2007 Dec-2008 Feb-2010 -2 -4 -6 -8 Sep-2010 Apr-2011 Jun-2005 Jan-2006 Oct-2007 Jul-2009 GDP growth rate inflation rate Analysis Task 1: Decide the cyclical natural of different variables, which can be decided by the correlation of individual variable and change rate of real GDP
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cc * Week 2 * Rationally, you should compare marginal benefit with marginal costs Do (all) individuals make rational decisions all of the time? * NO (Economies is a study of how rational individuals make decisions) Examples: * Many restaurants do stay open for lunch, although there are relatively few customers * Number of motor vehicle accidents does go up subsequent to introduction to seatbelt legislation Agenda Key Concept: Comparative Advantage Production Possibilities
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China’s Economic Growth 1978-2025: What We Know Today about China’s Economic Growth Tomorrow Views of the future China vary widely. While some believe that the collapse of China is inevitable, others see the emergence of a new economic superpower that increasingly poses a threat to the U.S. This paper examines the economic growth prospects of China over the next two decades. Extrapolating past real GDP growth rates into the future, the size of the Chinese economy surpasses that of the U.S. in
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Subjective Well‐Being and Income: Is There Any Evidence of Satiation?* Betsey Stevenson The Gerald R. Ford School of Public Policy, University of Michigan & CESifo and NBER betseys@umich.edu www.nber.org/~bstevens Justin Wolfers Department of Economics & The Gerald R. Ford School of Public Policy, University of Michigan & Brookings, CAMA, CEPR, CESifo, IZA and NBER jwolfers@umich.edu www.nber.org/~jwolfers ABSTRACT Many scholars have argued that once “basic needs” have been met, higher income
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Asymmetric Shocks, Long-term Bonds and Sovereign Default1 Junjun Zhu, Shiyu Xie School of Economics, Fudan University January 2011 Abstract: We present a sovereign default model with asymmetric shocks and long-term bonds, and solve the model using discrete state dynamic programming. As result, our model matches the Argentinean economy over period 1993Q1-2001Q4 quite well. We show that our model can match high default frequency, high debt/output ratio and other cyclical features, such as countercyclical
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What is unemployment? How do we calculate it? What are the different types of unemployment? Which ones do you think are the most difficult for a country to resolve? Explain. Unemployment occurs when people are without work and actively seeking work. Unemployment is a barometer for economic well-being in other sectors of the economy. Unemployment is calculated through the unemployment rate. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by
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ECONOMICS EXAMINATION GUIDELINES GRADE 12 2014 These guidelines consist of 25 pages. Copyright reserved Please turn over Economics 2 Examination Guidelines DBE/2014 INDEX PAGE 3 1. INTRODUCTION 2. ASSESSMENT IN GRADE 12 2.1 Format of the question papers 2.2 Detail of question papers 4 4 4 3. CONTENT 6 4. CONCLUSION Copyright reserved 25 Please turn over Economics 1. 3 Examination Guidelines DBE/2014 INTRODUCTION The Curriculum and Assessment Policy Statement (CAPS) for
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