Question: 1. Why might it be possible for there to be a zero marginal productivity of labour on many family farms in poor countries and yet

1. Why might it be possible for there to be a zero marginal productivity of labour on many family farms in poor countries and yet for there to be just enough food for all the members of the family to survive? (Illustrate using MPP and APP curves.)

2. The figures in the following table are based on the assumption that birth rates will fall faster than death rates. Under what circumstances might these forecasts underestimate the rate of growth of world population?

Step by Step Solution

★★★★★

3.46 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

1 Because the average physical product is sufficiently ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Microeconomics Questions!

If economic profits were zero, would a monopolist ever stay in business? Why might it be possible for a monopolist to earn positive economic profits in the long run?

Why might it be possible for a company to make large operating profits, yet still be unable to meet debt payments when due? What financial ratios might be employed to detect such a condition?

Suppose that there were three possible states of nature as represented in the table below: a. What conditions would be required for the regret theory utility function to predict preference cycling...

Cite and explain the structural changes that an economy undertakes as it goes through the process of development. MAKE IS BRIEF AND CONCISE. FOLLOW PICTURES PROVIDED AS REFERENCES The Structural...

Debating Global Development - Review: Chapter 8 Instructions: Chapter 8 Identify and explain two distinct pieces of knowledge acquired from the chapter. Identify a specific assertion that you found...

Chapter 3 Describe and explain the terms climate sensitivity, fat tail, and low beta, and how they relate to climate change. What are the estimated economic costs of global warming? Can we trust...

1: Describe and explain the terms climate sensitivity, fat tail, and low beta, and how they relate to climate change. 2: What are the estimated economic costs of global warming? Can we trust these...

1.Infant mortality rates in developing countries: A/ are substantially higher than in developed countries. B/ are substantially lower than in developed countries. C/ are about the same as in...

make short notes for the answer 27. Assertion (A) : In India, "Green 30. The fundamental cause for the Revolution' was also criticised collapse of the Bretton Woods as Wheat Revolution. System was...

Case Summary Read the Discussion Assignment 2-1 on p.34 of the text Technology Adoption by Small Manufacturers. Consider yourself as a health care leader in a small not-for-profit hospital. You have...

Consider the following four data sets in the table below. Complete parts (a) through (g) below. Click the icon to view the four data sets. a. Compute the mean of each data set. x (Data Set I) x (Data...

Pavin acquires all of Stablers outstanding shares on January 1, 2009, for $460,000 in cash. Of this amount, $30,000 was attributed to equipment with a 10-year remaining life and $40,000 was assigned...

Which of the following factors are relevant when determining whether a person resides in Australia in accordance with the 'resides test'? social and living arrangements maintenance and location of...

8. You buy a 3-month European put on a share for 4 with an exercise price of 50. The current share price is 52. when will you exercise your option and when will you make a profit? Draw a diagram to...

A well-known industrial firm has issued $1000 bonds that carry a 4% nominal annual interest, rate paid semiannually. The bonds mature 20 years from now, at which time the industrial firm will redeem...

One aspect of obtaining a college education is the prospect of improved future earnings in comparison to non-college graduates. Sharon Shay estimates that a college education has a $28,000 equivalent...

An investor purchased a one-acre lot on the outskirts of a city for $9000 cash. Each year he paid $80 of property taxes. At the end of 4 years, he sold the lot. After deducting his selling expenses,...

QUESTION 4 A . Dren Industries is considering expanding into a new product line. Earnings per share are expected to be $ 5 in the coming year and are expected to grow annually at 5 % without the new...

Consider the following asset and liability structures: County Bank Asset: $10 million in a one-year, fixed-rate commercial loan $5 million in a 6 month Treasury bill Liability: $10 million in a...

Suppose you have the following probability distribution. State of nature Profit Level Probability Optimistic $500 0.3 Most Likely 100 0.6 Pessimistic -400 0.1 What is the mean? A. 68,100 B. 1.5 C....