Discuss the differences between developing and emerging market economies
What will be an ideal response?
Although the average income in emerging market economies is less than that in advanced economies, developing countries generally have lower levels of income than emerging market economies. Emerging market economies are in some ways as developed as the advanced economies because they often have a well-trained labor force and a reasonable capital stock, both of which are typically missing in developing economies. But emerging market economies are struggling to raise their living standards. The main difference between emerging market economies and other economies is their economic system. Emerging market economies operated under state-owned production for many years and are now moving towards a free market system. Developing economies generally do not have the same history of a very long period of time operating under a system of state-owned production.
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All else equal, the price elasticity of demand for a good tends to be lower:
A. in the long run. B. if the good has many close substitutes. C. if the good represents a large share of a consumer's budget. D. if the good has few close substitutes.
In long-run equilibrium,
a. perfectly competitive firms in a decreasing-cost industry can earn economic profits b. perfectly competitive firms in an increasing-cost industry can earn economic profits c. perfectly competitive firms in a constant-cost industry can earn economic profits d. perfectly competitive firms can earn only normal profits e. no entry occurs in an increasing-cost perfectly competitive industry
Because of college financial aid packages, the cost of college is highest for ______.
a. the poor b. most of the middle class c. the rich d. first generation students
The conventional way to regulate a natural monopolist is to force it to charge a price equal to marginal cost.
Answer the following statement true (T) or false (F)