+1-817-968-5551
+61-488-839-671
+44-7480-542904About Expert
Key Topics
Requirement
1- Write a report on "microeconomics of Liberia" in approx 1250 words with references to APA.
Solution
Answer to Q a)
The Gross Domestic product can be defined as the financial or monetary assess indicating the market value of all ultimate goods and services created in a given period of time in a particular financial year.Liberia has always been an underdeveloped country mainly after the civil war of Liberia that took place from 1989 to 1996 (Tradingeconomics.com. 2019). The current figure of GDP value of Liberia has been around 215.8 million USD in 2017 and is expected to be 3.22 USD billion in the end of the quarter of 2019.
Answer to Q b)
Productive Efficiency can be explained as an economic situation where a country or an organisation can no longer produce a particular good without sacrificing or minimizing the production of another good (Deng and Leonard 2008).
Allocate efficiency can be defined as the situation in the economy where the production process is mainly determined by the preference of the consumer i.e. each and every product is produced up to that level where even the last point where the marginal benefit will be equal to marginal cost of the consumer (Deng and Leonard 2008).
Why stress when you can get the best economics assignment help from Allassignmenthelp.com professional experts? By following a few simple steps, you can easily access our economics assignment writing services. We have kept our order process so simple that even beginners can easily place their international economics homework help orders on our website.
Answer to Q c)
As we know that the nominal GDP value of a country is the total output that is produced in a country within a particular financial year. Real GDP figure of a country takes the inflation into account and hence removes the effects of inflation from the data which measures the standard of living of a country (Brookings.edu. 2019). The higher the production of a country the higher will be the wages and therefore higher will be the standard of living.
Answer to Q d)
There are 3 main factors which actually drive economic growth:
-
Accumulation of capital stock – Capital stock measures the economic growth of the country. The more amount of capital, the more will be the value of investment and therefore more will be amount of output production which means higher GDP growth.
-
Increase in labour inputs –Labour input increases the output production. The more the number of labour, the more will be the level of production and thus more will be economic growth (Matsushita, Siddique and Giles 2006).
-
Technology Advancement – Technological advancement drives economic growth to a certain extent. The more the technology is advanced, the more will be the output production and more economic growth
Answer to Q g)
There are several ways to control inflation in an economy:
-
High Interest rate – The government often increases the rate of interest to control inflation. Lowering interest rate will in turn reduce investment, which will control inflation in the economy.
-
Reducing Money Supply – Another way to control inflation is reducing the money supply of the economy. Reducing money supply will lead to decrease the purchasing power of the consumers, thereby reducing inflation (Kaushikbasu.org. 2019).
-
Decreasing government expenditure – During inflation, the government reduces its expenditure level to control inflation. It stops giving subsidies and discounts to maintain the expenditure level which in turn controls inflation.
Place Order For A Top Grade Assignment Now
We have some amazing discount offers running for the students
Place Your OrderAnswer to Q h)
There are various roles of Central Government in an economy:
-
Regulating the functions of banks – One of the important functions of central government is to regulate the functions of bank. The monetary measures that are taken by the reserve bank are all approved by the central government as well.
-
Keep unemployment low – The central bank also plays an important role in reducing the unemployment level by creating jobs for the economy.
-
Prevent inflation – High inflation in an economy reduces the growth of the economy (Tabellini 2005). Therefore, the central bank takes various steps in reducing the inflation rate of the economy to foster economic growth.
-
The functions of the foreign currency exchange rate are:
-
Stabilize nation’s currency rate – The foreign currency market of the country determines the exchange rate of the country. Therefore, foreign currency market helps to stabilize the exchange rate and prevent the rate from fluctuating.
-
Fulfils the demand of the foreign market – The demand of the foreign market is fulfilled with the exchange rate that is fixed by the foreign market. Goods that are traded cannot be done in domestic currency; it has to be done in foreign currency (PreserveArticles.com 2019).
Step 1:
GDP values of 3 countries in USD (billion)
Year
Liberia
Algeria
Egypt
2014
201.3
213.81
305.53
2015
203.4
165.979
332.698
2016
210.1
160.13
332.928
2017
215.8
167.555
235.369
2018
324.8
180.689
250.895
Step 2:
The mean value of the GDP of Liberia is 3.2266 billion over these years.
Comparing the above data of GDP of these three countries, we can conclude that the growth rate of Egypt is quite high than Liberia and Algeria. This is may be because Egypt is termed as a developing country whereas Liberia and Algeria both are considered as under developed country. Egypt has high capital formation, high investment which leads to high output and thereby high income and GDP value compared to Algeria and Liberia (Pubdocs.worldbank.org. 2019). On the other hand, Liberia and Algeria have lower capital formation, lower investment which leads to lower output and therefore low income and low GDP and hence slow growth compared to Egypt. The above graph shows that the GDP per capita of Egypt is quite higher than Liberia and Algeria. The Algeria’s per capita is higher compared to Liberia and Liberia’s per capita is the lowest.
Give your grades a boost
Just share your requirements and get customized solutions on time.
-
1,168,768 Orders
-
4.9/5 Overall Rating
-
5,052 Experts
