Answer:D) backward bending.
Explanation: Engel Curve is a curve developed based on the study on households expenditures and income by a German Statistical expert named Ernst Engel in the year 1857.
An Engel curve shows the relationship between demand for a good (on the horizontal or x-axis) and income level (on the vertical or y-axis). A normal good has a positive slope of curve is Positive,but if the slope of the curve is negative, the good is an inferior good.
THE CURVE FOR JOYCE AND LARRY AFTER THEY REDUCED THEIR HOME IMPROVEMENT SPENDING WILL HAVE A BACKWARD BENDING.
Answer:
family insurance and life insurance
Answer:
The answer is B.
Explanation:
Foreign Direct Investment (FDI) flows record the value of foreign direct investment(a form of having a controlling ownership in a business in one country by a business based in another country) during a given period of time. Financial flows consist of equity transactions or debt transactions among entities.
The cpi is a measure of the overall cost of the goods and services bought by a typical consumer.
<h3>What is the CPI?</h3>
The consumer price index is a measure of inflation. It measure the price changes of a basket of goods bought by consumers.
CPI = (cost of basket of goods in current period / cost of basket of goods in base period) x 100
To learn more about, consumer price index, please check: brainly.com/question/26382640
Answer:
If the Cobb Douglas production funtion is
This function is homogeneous of degree 3: To understand that, we first must know that a function f(K,L) is homogeneous of degree "m" if . Intuitively, this means that, when you increase your productive factors (in this case, we are talking about a production function), by a factor "", your output increases by . Depending on the value of m, the function will exhibit increasing returns to scale (m>1), decreasing returns to scale (m<1) or returns to scale equal to 1 (when m=1).
- In this case, . Applying distributive power's property, we get .
- Because of power property, we can associate terms and get (remember that .
- Finally, . In this case the function is homogeneous of degree 3 because when multiplying K and L by , the function as a whole is multiplied by .
Euler's Theorem: this theorem states that, if a function is homogeneous of degree "m", the following must hold: .
- To prove it, we should then calculate the partial derivative of Q with respect to L and K respectively, and apply the previous definition to see if the statement holds.
- Applying Euler's Theorem then means should be equal to (remember that in this case, m=3, see previous exercise).
- Solving
- Then the Euler's Theorem is verified!