Answer:
Check the explanation
Explanation:
Kingman view of inequality is based on individual worker. His concept of inequality can be described as follows:
He believes that individual' s productivity differs from individuals to individuals There may be individuals that are highly productive and can make best possible use of the available resource as compared to other. This constitutes one of the main reasons for huge inequality.
He also described inequality based on luck There may be individuals with same productive capacity It is just the matter of luck to be on right place at right time to grab the jackpot.
He also described inequality based on powers in this he described that executives in big corporations set their own compensation and there may be financial dealers getting richer by taking fees from the investors that are new in the market.
Lucas view of inequality can be described as follows:
Lucas view of inequality is variant of Solow model describing different countries growing at different period of times the one that kick start first will grow but nation starting to prosper later will grow more because of favorable environment created by the earlier growing nations.
Thus Lucas model indicates that different countries having different growth rates and will fail to converge and there forms the concept of inequality among nations.
The similarities in the view point of inequality between Kingman and Lucas is on the topic of human capital development.
Keynesian was of the viewpoint that fiscal policy will put the economy out from the situation of liquidity trap Thus there are some stimulus that are a must but however Lucas was monetarist and believes that final stimulus will not work if there is no printing of money.
Lucas prediction if true then money supply in economy will increase because of printing of more number of money. Rise in money supply will create the situation inflation because too much of money will be chasing too few goods which will lead to rise in price further and thus there will be no significant changes in the income inequality.
Answer:
The literature shows that there are many models that are in use and that differ substantially in both style and application. The idea generation methods can be divided into three groups: group work, individual approach and schematic techniques.
Explanation:
Answer:
Prime cost per unit is: a. $7.00
Explanation:
Prime costs are direct costs and calculated by the following formula:
Prime costs = Direct materials + Direct labor
Prime cost per unit = Prime costs/ number of units are produced
Barnard Company produced and sold 10,000 units. Direct materials were $50,000; Direct labor were $20,000.
Prime costs = $50,000 + $20,000 = $70,000
Prime cost per unit = $70,000/10,000 = $7.00
Answer:
d. benefit; strengthens
Explanation: Exchange rate is a term used in the currency market or in an economy to describe the value of a given currency against another currency, the exchange rate is usually used in most cases against a generally accepted reference currency such as the United States of America Dollar. WHEN THE EXCHANGE RATE OF A CURRENCY INCREASES(STRENTHENS) THE VALUE OF THE CURRENCY INCREASES WHICH HELPS THE USERS OF THE CURRENCY TO BENEFIT FROM THE INCREASED VALUE.
Answer:
c. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers.
Explanation:
Welfare economics by definition , is the study of how various allocation of resources affects economic well-being of buyers, seller and community at large. This study seeks to evaluate economic policies and determines their effects on the well-being of buyers and sellers. It assumes that an efficient allocation can be attained by a competitive equilibrium, given the market mechanisms that cause redistribution. However, the tools of welfare economics are not reliable when markets are inefficient.
