This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is productive efficiency? A) a situation in which firms produce as much as possible B) a ... (Read 69 times)

cabate

  • Hero Member
  • *****
  • Posts: 537
on: Jun 29, 2018
What is productive efficiency?
 
  A) a situation in which firms produce as much as possible
  B) a situation in which resources are allocated such the last unit of output produced provides a marginal benefit to consumers equal to the marginal cost of producing it
  C) a situation in which resources are allocated such that goods can be produced at their lowest possible average cost
  D) a situation in which resources are allocated to their highest profit use

Question 2

Suppose you are a famous international economic advisor. You have been asked to asses the possibilities for growth in an African country. It is a country abundant in labor and some natural resources. The capital-to-labor ratio is low.
 
  It has a free market economy. You have found that this country does not have a very strong and healthy banking system, however the political system is stable and the government does a good job protecting property rights. Assess this country's prospects for growth. Recommend two things that would enhance the country's growth.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ndhahbi

  • Sr. Member
  • ****
  • Posts: 390
Reply #1 on: Jun 29, 2018
Answer to Question 1

C

Answer to Question 2

The prospects for this country's growth are fairly good. It has a lot of labor and natural resources. Having abundant factors of production can contribute to strong growth. The free market system is also another characteristic that should help enhance economic growth. Entrepreneurs can respond quickly and adopt technological innovations. We know that technological change can increase labor productivity. Also the fact that the government enforces property rights can help the free market to flourish. The political stability of the government is also a good sign. Investors won't be afraid to risk investing in the country. Two things the country could do to increase growth would be to raise the capital-to-labor ratio and develop the financial sector. The country could increase the capital-to-labor ratio by attracting foreign investment, or perhaps giving tax breaks to firms that increase the amount they invest. This is probably one of the most effective ways to increase growth.


cabate

  • Member
  • Posts: 537
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

miss.ashley

  • Member
  • Posts: 371
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Furchgott's discovery that endothelial cells produce a vasodilating substance. Furchgott's discovery that endothelial cells produce a vasodilating substance.
Role-Playing a Situation in Which a Patient Is Frightened, Angry, or Anxious Role-Playing a Situation in Which a Patient Is Frightened, Angry, or Anxious
The transition from college to first job can be a triggering situation for new growth in meaning ... The transition from college to first job can be a triggering situation for new growth in meaning ...
As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ... As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ...
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
A common autosomal recessive allele can produce a pedigree that looks like an autosomal dominant tra A common autosomal recessive allele can produce a pedigree that looks like an autosomal dominant tra
Video: Male Reproductive System - The gonadotropin releasing hormone

For a complete list of videos, visit our video library