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On the contrary, it occurs when production is below equilibrium point or when there is a price ceiling.
Thus, on the basis of the above analysis, it clear that the market equilibrium may be applied in the process of economic recovery. For instance, strains in the economy may be attributed to lack of economic incentives. This ends up locking potential entrepreneurs out of business perpetuating disequilibrium in the market. Therefore, for an economic recovery to be instituted, the government may introduce various economic incentives. Consequently, economic incentives encourage more investments, enhance technological innovations, enhance substantial cost saving and above all, enhances improved relationship between the public and the private sector. Basically, this is what is required to stimulate economic recovery. Thus, economic recovery may not be achieved through excessive government expenditure, increase in taxes, artificial stimulation or instituting various regulation.
Instead, economic recovery may be championed through stimulating the various economic incentives as mentioned in the foregoing paragraph. This may include enhancing the growth of small entrepreneurial business. Such businesses are accredited for fueling economic growth and create more job opportunities. This may be done through slackening the requirements for establishment of businesses and creating disincentives for business investments as well.
The profusion of incumbent government regulations acts as a hindrance to new investments. Thus, it could be perceived that such regulations perpetuate disequilibrium in the establishment of new markets. In order to ensure equilibrium in the establishment of new entrepreneurial businesses, removal of such hindrances is a necessary
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The economic point of view specifically states that interest and personal consumption are highly associated, more consumption is preferred than less and current and future consumptions influence behavior (Berg, Dickhaut, & McCabe 122). In line with this assumption, there is a need to challenge existing belief that an individual’s self-interested behavior prevails in the social context of the economic standpoint.
The authors indicated that the game would require a “volunteer” in order to enjoy a stipulated benefit by all participants of the game. Equilibrium properties were used to predict the outcomes of the probabilities of volunteering depending on the size of the group: the Nash predictions that contend that the probability of volunteering decreases as the number of members in a group increases, attributed to a “diffusion of responsibility” (Goeree, et.al, 3); the quantal response equilibrium (QRE) which incorporates the effects of noice factors requiring “choice probabilities to be consistent with beliefs” (ibid, 4); and the inequity aversion that indicates that “a person who volun
The experiment consisted of 12 experimental sessions. The laboratory design of each experiment question consisted of an auction market with four buyers and sellers. Buyers made money by buying from the sellers and reselling to the experimenter, while sellers made money by buying from the experimenter and reselling to the buyers.
The paper presents a series of economic anomalies. An economic concept discussed in the journal article was the winner’s curse. The winner can be set to be cursed in one of two ways: 1) the winning bid exceeds the value of the item; 2) the value of the item is less than the value to bidder estimated.
The second line directly mentions without much ado, what are the main environmental problems. The writer mentions all the main issues one by one, so that the readers should know the objective of the article. Unlike normal writers, who address the whole humanity, he is addressing only the scientists, who according to the author are more knowledgeable.
China’s competitiveness is characterised by a large, cheap and productive workforce, an expansive industrial sector, technical expertise etc. China’s membership of the World Trade Organisation (WTO) has heightened the threat due to greater access to
Though the study has dealt with a case study of Slovenia, ideal to be called economically a small country, the paper sets a model for capital market development in smaller countries. The paper with the aid of supporting data and evidences suggests the lack
The article also identifies the geo-economics that is fundamentally reshaping lives faster than we can realize. Thomas L. Friedman (2005) also talks about people sleeping on these lies rather than focusing on them to find out the truth. The article then states
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