about elasticies

5  out of 5 found this valuable. Do you find this valuable? Do you?    

Show Last Reply

is G.N.P an efficient measure of social welfare?

1  out of 2 found this valuable. Do you find this valuable? Do you?    

IAre venture capital companies (like Mit Romney's Bain Capital company) practicing "vulture capitalism"??

 out of  found this valuable. Do you find this valuable?    

My school is considering the launch of AP Econ. Can it be feasibly done as a one-semester class? Would you recommend Macro or Micro for student recruitment and success?

0  out of 1 found this valuable. Do you find this valuable? Do you?    

discuss the importance and concept of income elasticity of demand and cross elasticity of demand

2  out of 2 found this valuable. Do you find this valuable? Do you?    

A Command economy system (also known as planned economy) is an economic system in which the state or government controls the factors of production and makes all decisions about their use and about the distribution of income.
That is why a command system is one in which decision making is centralized. In a command economy, the government controls the factors of production and makes all decisions about their use and about the consumption of output (Bruce115). The central planning unit takes the input of the economy and directs them into outputs in a socially desirable manner. This requires a careful balancing between output goals and available resources. Resources are allocated through a planning process. In a command economy, the state plans the allocation of resources between current consumption and investment for future, the output of each industry and firm, methods of production and the resources allocated to each industry and firm. Moreover, in a command economy, all factors of production apart from labour are owned by the state. The classic examples of command economies are Cuba and North Korea.
This system is unresponsive to the needs and whims of consumers and to sudden changes in conditions (for example, crop failure or fluctuations in the world price of raw materials). For example, in the former USSR, state planners decided what was to be produced. They passed orders down to factories, allocating raw materials, workers, and other factors of production to them. Factories were then told how much they should produce with these resources and where they should be sent. If there was a shortage of goods in the shops, then goods would be rationed through queuing.

In command economies, government committees of economic planners, production experts, and political officials establish production levels for these goods and designate which factories will produce them.

0  out of 1 found this valuable. Do you find this valuable? Do you?    

as a student-consumer identify the good/service you purchase which are:
1. Luxury Item
2. essential Item
3. Semi Luxury Item

3  out of 6 found this valuable. Do you find this valuable? Do you?    

http://www.econbrowser.com/archives/2008/06/the_oil_shock_o.html

The article talks about the price of oil and its influence in the sales of cars and trucks. It has many demonstrations of how the increase in the price of oil in 2008 affected their complementary good (cars, trucks, etc). Additionally, there is a mention about changes in the income of the population.

3  out of 3 found this valuable. Do you find this valuable? Do you?    

Show Last Reply

Im just wodering to know the different between diminishing marginal return and decreasing ecnomic scale.want to know the clear concept in the curve

1  out of 1 found this valuable. Do you find this valuable? Do you?    

I would be most grateful if someone could clarify the concept of normal profit for me. There seems to be somewhat different definitions in different texts. (But it is probably that I am not understanding it completely.) Some places seem to say that normal profit is the total economic profit expected from a firm in a particular industry in order to remain in business. Other places seem to say that it is the implicit cost of entrepreneurial talent supplied to a firm. But in the latter definition, the text I am reading from (Economics by Parkin, 8th ed.), the normal profit is just one part of the total economic cost. He also adds lost wages that the owner could supply in the next best job. But how can a business owner supply both entrepreneurial talent (by being the boss) and labor at the same time? Are we not double counting by considering the lost wages of the two next best jobs?

2  out of 2 found this valuable. Do you find this valuable? Do you?