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There are 1000 people living in a small seaside village; 250 of them are potato farmers and 250 are fishermen. The people in the village enjoy a balanced diet of fish and chips. However, a resident vegetarian has convinced people to eat more potatoes and the demand for potatoes has risen. Due to the increased demand, many fishermen have sold their fishing businesses and become potato farmers; there are only five fishermen left with all the fishing equipment. The remaining fishermen are also thinking about becoming potato farmers. An economist has been observing the situation and advises the five fishermen not to become potato farmers but rather to form a single fishing firm, she tells them that they will thank her later.
Given your understanding about market structures, explain what the economist has observed and why she is making that specific recommendation to the fishermen.
The following table describes the production possibilities of two cities in the country of Basebalia:
Wheat per Worker per Hour Corn per Worker per Hour
Boston 6 6
Chicago 2 4
Which city has an absolute advantage in the production of wheat and corn? Which city has a comparative advantage in the production of wheat and corn? Explain your answer.
consider the police force of a country . its job is to maintain law an order of the country. suppose that in a given year it spent rs 10 lakh interest on its outstanding loan
,rs 20 lakh in wages and salaries , rs 10 lakh on stationary, fuel,power, and acquired buildings,equipment and cars worth rs 30 crore. what is its GVA in a given year ?
Did it contribute anything to G and transfer payments of goverment administration and defence ? explain?
How can the government utilize the instruments within a fiscal policy to stimulate economic activity in an economy experiencing a recession?
.National Income is a good measure of social welfare. Do you agree with the statement? Discuss.
What is the purpose of competition in monopoly and oligopoly
Eskom is a well-known government-created monopoly in South Africa. briefly explain Eskom as a monopoly has impacted the South Africa economy, since 2009. ( 50 marks)
the market fast-food chicken restaurants, like KFC, chicken licken, and Nandos are said to be within the category of monopolistic competition. examine this market for characteristics and behaviors that link them to this type of market structure. ( 60 marks)
according to the theory of labor market mechanisms of supply and demand will naturally move towards equilibrium, where unemployment will be at its natural rate. however, for more than 25 years, South Africa's unemployment rates have been among the highest in the world. using your knowledge of the South African labor market as well as the theory of firm examine why South Africa is faced with such high levels of unemployment. ( 80 marks)
How fiscal policy influences aggregate demand and how these can be used to expand the economy?
