What are some of the ways economic growth can be achieved?

June 30, 2024 No Comments

A: Economic growth is measured by an increase in gross domestic product (GDP), which is defined as the combined value of all goods and services produced within a country in a year. Many forces contribute to economic growth; unfortunately, no one is 100% clear about what

What are the disadvantages of using a simple random sample to approximate a larger population?

June 30, 2024 No Comments

A: Simple random sampling statistically measures a subset of individuals selected from a larger group or population to approximate a response from the entire group. Unlike other forms of surveying techniques, simple random sampling is an unbiased approach to garner the responses from a large

What are some real life examples of absolute advantage?

June 30, 2024 No Comments

A: Absolute advantage is fairly simple to identify in theory, but it can be difficult to tease out in practice. Even with the existence of absolute advantage, the influence of comparative advantage and other factors affecting trade make absolute comparisons between countries difficult. Absolute advantage

What are the economic impacts of specialization?

June 30, 2024 No Comments

A: Specialization, along with the complementary concept of the division of labor, occurs when the innate inequalities of human productive output are intensified along different skills. An individual becomes economically specialized when he focuses his productive efforts on an increasingly narrow range of tasks. The

What are some real-life examples of the 80-20 rule (Pareto Principle) in practice?

June 30, 2024 No Comments

A: There are a number of practical applications for the 80-20 rule in diverse areas such as the distribution of wealth in economics, quality production control, business sales and growth. The 80-20 rule was invented by Vilfredo Pareto in Italy in 1906. According to legend, Pareto,

What are the Four Types of Economic Utility?

June 30, 2024 No Comments

A: The four types of economic utility are form, time, place and possession. “Utility” in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company’s goods or services. Companies seek to provide maximum customer

What are some examples of expansionary fiscal policy?

June 30, 2024 No Comments

A: The two major examples of expansionary fiscal policy are tax cuts and increased government spending. Both of these policies increase aggregate demand while contributing to deficits or drawing down of budget surpluses. They are typically employed during recessions or amid fears of one. Classical

What are some examples of expansionary monetary policy?

June 30, 2024 No Comments

A: Examples of expansionary monetary policy are decreases in the discount rate, purchases of government securities and reductions in the reserve ratio. All of these options have the same purpose—to expand the country’s money supply. This is a tool employed by central banks to stimulate

What are some examples of industries that practice price discrimination?

June 30, 2024 No Comments

A: Many industries practice price discrimination, including the entertainment industry, the consumable goods industry and the client services industry. Each one of these industries provides a good example of the three types of price discrimination, which is the act of charging different prices for the

What are some examples of inelastic goods and services that are not affected by the law of supply and demand?

June 30, 2024 No Comments

A: The laws of supply and demand affect all goods in the market. The degree to which prices respond to changes in supply and demand is known as price elasticity. Goods that are highly inelastic react less dramatically, but that does not mean the laws

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