This topic contains a solution. Click here to go to the answer

Author Question: In the 1960 nations could be divided into three distinct groups. Discuss these three groups and ... (Read 57 times)

fox

  • Hero Member
  • *****
  • Posts: 540
In the 1960 nations could be divided into three distinct groups. Discuss these three groups and offer examples of countries that fit into each of these categories.
 
  What will be an ideal response?

Question 2

If a household has an income of 40 and buys only bus rides at 2 each and magazines at 4 each, what is the equation of the household's budget line?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

ms_sulzle

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

In the early 1960s, the nations of the world could be assigned rather easily to categories: The developed countries included most of Europe, North America, Japan, Australia, and New Zealand; the developing countries included the rest of the world. The developing nations were often referred to as the Third World to distinguish them from the Western industrialized nations (the First World) and the former Socialist bloc of Eastern European nations (the Second World).

Answer to Question 2

The budget equation states that a household's spending must equal its income. The budget equation is derived for two goods, bus rides and magazines. The amount spent on bus rides is (Pbus ride)(Qbus ride), the amount spent on magazines is (Pmagazine)(Qmagazine), and the consumer's income is y. We know that (Pmagazine)(Qmagazine) + (Pbus ride)(Qbus ride) = y. Rearrange this equality by subtracting the amount spent on bus rides from both sides to give (Pmagazine)(Qmagazine) = y  (Pbus ride)(Qbus ride). Finally, divide both sides by the price of magazine to give the budget equation Qmagazine = y/Pmagazine  (Pbus ride /Pmagazine)(Qbus ride). Substituting in our values, y = 40, P bus ride = 2 and P magazine = 4, gives Qmagazine = 40/4  (2/4)(Qbus ride) which is equal to Qmagazine = 10  0.5 Qbus ride





 

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Did you know?

Acetaminophen (Tylenol) in overdose can seriously damage the liver. It should never be taken by people who use alcohol heavily; it can result in severe liver damage and even a condition requiring a liver transplant.

For a complete list of videos, visit our video library