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What is productive efficiency?

productive efficency is seen at the lowest point of average cost, which is also where the marginal cost curve cuts the average cost curve. Productive efficiency means that all resources have been allocated e...
IA
Answered by Isini A. • Economics tutor
3941 Views

Evaluate a constraint on Economic growth and development. (8)

Definition: Economic growth is a long-term expansion of the productive potential of the economy. Chain of Argument: ↑Primary Product dependency → ↓Terms of trade + ↑susceptible to price fluctuations, protect...
JB
Answered by Jacob B. • Economics tutor
7106 Views

How would a reduction in interest rates lead to an increase in Economic Growth?

A reduction in interest rates would lead to a boost in Aggregate Demand and therefore an increase in real national output. If the monetary policy committee decide to reduce interest rates then the incentive ...
SC
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How can a fall in interest rates affect the Aggregate Demand of an economy

AD=C+I+G+(X-M) Interest rates (i) determine the return of saving money in a bank and the cost of borrowing money from a bank. Therefore, a fall in i means that the cost of borrowing falls and the return on s...
IK
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The demand curve can be graphed using the expression Q = 100 - P and the supply curve can be graphed using the expression Q = 40 + 2P. Find the equilibrium price and quantity in this market.

The equilibrium price and quantity within a market for a good can be found at the intersection of the supply and demand curves. Therefore, we need to use a mathematical method to find the P and Q by equating...
TK
Answered by Tamara K. • Economics tutor
2810 Views