Does the federal government fund any NGOs? Which ones?

June 30, 2024 No Comments

A: A non-governmental organization (NGO) is a non-profit, citizen-based group that functions independently of government. NGOs are organized on local, national and international levels to serve specific social or political purposes. Despite their independence from government, many NGOs receive significant funding from government entities. While

Are perfect competition models in economics useful?

June 30, 2024 No Comments

A: Perfect competition is the name used for a set of false assumptions of mainstream economists in models that, without those assumptions, could not be applied to real data. In effect, these models create the framework necessary to make economics a positive empirical science. Most

Globalization and International Investment

June 30, 2024 No Comments

A: Globalization has resulted in greater interconnectedness among markets around the world and increased communication and awareness of business opportunities in the far corners of the globe. More investors can access new investment opportunities and study new markets at a greater distance than before. Potential

Are there any exceptions to the law of demand in economics?

June 30, 2024 No Comments

A: There are different definitions of the law of demand in economics. The most common definition, which is adapted to fit macroeconomic models, shows an inverse correlation between the price and quantity demanded of a good. There are some real-world exceptions to the model-based definition,

Are there critics of the human development index (HDI)?

June 30, 2024 No Comments

A: The human development index (HDI) assigns numerical values to different countries as a measure of human prosperity. These values are derived using measures of health, education, standard of living and life expectancy. Countries with higher scores on the index are said to be better

Can Internet companies be vertically integrated?

June 30, 2024 No Comments

A: Internet companies can be vertically integrated, just as traditional businesses vertically integrate to consolidate costs and to expand corporate reach in the market. Vertical integration occurs when a merchant or business begins to absorb the various levels above and below it in the distribution

Can state and local governments in the US run fiscal deficits?

June 30, 2024 No Comments

A: There is nothing about the nature of state and local governments that prevents them from running deficits in the same manner as the U.S. federal government. A fiscal deficit is brought about whenever government revenue fails to meet government expenditures – an accounting reality

Can the Efficient Market Hypothesis explain economic bubbles?

June 30, 2024 No Comments

A: The efficient market hypothesis (EMH) cannot explain economic bubbles because, strictly speaking, the EMH would argue that economic bubbles don’t really exist. The hypothesis’s reliance on assumptions about information and pricing are fundamentally at odds with the mispricing that drives economic bubbles. Economic bubbles

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