Present the concept of PPF and discuss the Ricardian model in detail.

Q: Why is Solow Model important for any Economy?

A: Solow finds a mathematical model for long-run economic growth. He expects full employment of capital…

Q: Explain what gains from trade are. Use the Ricardian model to explain the how an economy obtains…

A: When talking about Ricardian model, it can be said that gain from trade can be seen on the…

Q: Explain the weaknesses of Malthusian Theory?

A: The Malthusian theory was developed by the 18th-century economist Thomas Malthus who introduced…

Q: Discuss the role of positive economics and narrative economies in the policymaking?

A: The discipline of economics that deals with describing and understanding economic phenomena is known…

Q: Differentiate between classical and neo-classical economics.

A: "Classical" and "neoclassical" are the names for two philosophical approaches to economics. As the…

Q: Outline the five main macroeconomic objectives that the South African government strives to achieve.

A: Macroeconomics is a branch of economics dealing with the structure, performance, behavior, and…

Q: In 60 words or less what is the major economic thought of John Maynard Keynes?

A: Keynesian economics theory was developed by the British economist John Maynard Keynes in the 1930s.…

Q: The following are exogenous (not directly affected by income): G = 11 I = 4 X = M = 0 The…

A:

Q: A Malthusian equilibrium, or an economy envisioned by Thomas Malthus, is more consistent with the…

A: According to Malthusian economy, the advancement in production technology is so slow in the economic…

Q: Economics came from the Greek word Oikos which means scarcity. Select one: True False

A: Scarcity: It refers to the problem of resources that are limited in the economy and wants of the…

Q: On the distant planet of Blompf, there are two types of citizens: Strongs are good at manufacturing…

A: Production possibility curve shows the different combinations of two goods that can be produced with…

Q: What are the characteristics of a good economic model?

A: Characteristics of a good economic model: 1) The acquisition cost is low compared to the cash flow…

Q: How does macroeconomics help analyze the impact of the coronavirus that swept the world late last,…

A: The Coronavirus or Covid-19 is the most discussed dangerous pandemic that is currently active all…

Q: According to the trilemma, which three macroeconomic policies are mutually inconsistent?

A: The currencies are bought and sold in the foreign exchange market. The equilibrium price of foreign…

Q: Microeconomics differs from macroeconomics in that microeconomics focuses on:     government…

A: Economics is the study of how people make choices in the situation of scarcity. The people make…

Q: Contrast laissez- faire( classical school of thought) vs Keynesian economics

A: Economics, it’s the science that speaks about the causes and explains the aspects that are linked…

Q: What fundamental concept is behind the PPF model?

A: Production Possibility Frontier (PPF): The Production Possibilities Frontier (PPF) shows all the…

Q: What is neoliberalism, why does it matter, and what are some differences in terms of how different…

A: Neoliberalism is a policy model that combines politics and economics, with the goal of transferring…

Q: Discuss each of the following statements from the standpoints of equity and efficiency. a. “Everyone…

A: Meaning of Equality and Efficiency: The term efficiency refers to the situation when an economic…

Q: Explain all three Circular flow economic models in one structure.  ?

A: An economic model is a simplified depiction of reality that enables economic action to be observed,…

Q: classical and Keynesian economists

A: The biggest disagreements in macroeconomics are related to the economic philosophy.

Q: how Ricardian model results in an increase in production in the world

A: International trade: - it means the buying and selling of goods and services with other countries.

Q: According to John Maynard Keynes, what are the major sources of economic instability?

A: Inflation is the rise in the prices of goods and services over some time.

Q: Market solutions would take too long

A: John Maynard Keynes more focus on demand side to come out from recession. He believe demand creates…

Q: According to Ferdinand Tönnies, urbanism corresponds to __________ (gemeinschaft/gesellschaft).

A: When talking about the difference between gemeinschaft and gesellschaft according to Ferdinand…

Q: Economic stabilisation programmes frequently include time gaps. Which lags in the effects of…

A: These lags are explained as under: 1. The Recognition Lag: It alludes to the time between the…

Q: Explain the role of macroeconomic policies in achieving the macroeconomic goals of a country

A: Macroeconomic goals refer to the government aim to maintain stability, improve economic growth, and…

Q: What can increase the standard of living in the Malthusian​ model?

A: Before the industrial revolution, the Malthusian economy was the economic system that characterised…

Q: How does neoliberalism differ from classical liberalism in its approach to economics? Group of…

A: Neoliberal proponents may use classical liberal logic to justify neoliberal policies. The…

Q: In the circular flow model, how does government affect the economy? What about the rest of the…

A: The circular flow model depicts how money circulates in society. Money moves from producers to…

Q: Compare laissez-faire (classical school of thought) vs Keynesian economics

A: The classical school of thought is related to laissez-faire, that is, the idea of minimal or no…

Q: The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…

A: circular flow of income is the economic model which represent the flow of income between household…

Q: What is intertemporal choice? And how it is elaborated in economics?

A: Economics is the study of efficient allocation of resources. The resources are limited or scarce…

Q: A normative statement reflects opinions or beliefs, while a positive statement... Cannot be tested…

A: Economics is a branch of social science that deals with the production, distribution, and…

Q: What are the Strength and Weaknesses of Malthusian Theory?

A: Malthusian Theory This theory of population was given by British economist T. R. Malthus. This…

Q: Explain the Malthusian theory briefly and concisely.

A: The Malthusian theory is propounded by Thomas Malthus in 1798 in his book on the Principle of…

Q: Define the concept of economic models

A: The model that compares the market variables to forecast the change in the market is known as an…

Q: The rich should pay higher income tax rates than the poor" is an example of a_________. a. Normative…

A: A normative statement is opinion-based and it says a value judgement if the statement is desirable…

Q: To minimize globalization's harm and reap its benefits, governments should strive for nationalized…

A: 1. To minimize globalization's harm and reap its benefits, governments should strive for…

Q: Solve the attachment.

A: Ricardo model of comparative advantage theory in International trade states that one trading nation…

Q: how does the circular flow model of  “incomes” and “expenditures” provide a foundation for economic…

A: The circular flow of income is an economic paradigm that represents the aggregate of market…

Welfare Analysis

Welfare analysis of the society is related to welfare economics. From the economic point of view former welfare economics refers to that subject which uses the techniques of microeconomics to analyse and evaluate the welfare at the economic or aggregate level.