# All Questions

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### Is the development of “developing countries” evidence against the idea that former colonial powers owe their headway to exploitation?

There is a recurring narrative (especially but not exclusively in left-leaning circles) that today's "developed nations", particularly Western former colonial powers, owe much of their wealth and ...
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### Why do increase in firms profit margins cause cost push inflation?

I read somewhere that this was the case. I get what profit margins and cost-push inflation are, but don't see how increase in marginal profit causes cost-push inflation? Also, how does increase in ...
68 views

### Economic Effects of Presidential Candidate Proposal: Pay the same % in taxes no matter what you gain

There's a presidential candidate in USA that promises to change IRS laws in order that everybody pays the same % in taxes, i.e., the rich will pay the same percentage as the poor. This would seem to ...
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### Arguments against inheritance tax

One of the arguments against inheritance tax is that it lowers the incentive to work for those close to retirement who have earnt enough money to be comfortable in old age. How much is this offset ...
250 views

### Foundational equations or concepts of Finance

For the other sciences it´s easy to point to the most important equations, inequalities, propositions or concepts that ground the discipline. If I want to explain Finance to a physicist say, what are ...
109 views

### How does Schumpeter's view of capitalism's demise fit in with the importance he placed on innovation?

Schumpeter is widely remembered for his belief in the power of innovation and entrepreneurship within a capitalist framework. In fact he argues that capitalism owes much of its success to this. Yet, ...
991 views

### What are main methods for econometrics of Macroeconomics?

I have a background in Finance and have become pretty interested in Macroeconomics as a graduate student. However the time is limited and I want to focus on econometrics part of Macroeconomics. In ...
418 views

### Under what circumstances is an increase in national output called economic growth?

An increase in output can be achieved in two basic ways. The first scenario: Aggregate demand increases, so supply extends. In this way the economy is making more use of its resources, but there is ...
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### Estimating causal effect for educated people on wages

I have a problem regarding causation and effect. I have a linear model $wage=\beta_0+\beta_1educ+\beta_2female+\beta_3hourseworked+errorterm$ When I need to estimate the causal effect for educated ...
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### Why Law of Supply indicate direct relation between price and supply?

According to Wikipedia, the Law of Supply states that: an increase in price results in an increase in quantity supplied. However, if the market was overflowing with a particular good (meaning ...
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### Why don't Burgers cost 5 cents?

In this blog post, economist Bob Murphy raises a puzzle involving the principle that in a competitive market, the price equals the marginal cost: There’s a general principle from intro to ...
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### Violating WARP or not? [closed]

If the only information we had about Goldie were that she chooses the bundle (6, 6) when prices are (6, 7) and she chooses the bundle (10, 0) when prices are (5, 5), then we could conclude that a. ...
177 views

### How are disaster effects calculated into GDP?

Assuming no income was lost, only assets were destroyed (e.g. homes), how does disaster event impact GDP numbers? Or otherwise, is losing and rebuilding wealth neutral to GDP (e.g. spending on ...
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### Indifference curves passing thru few points [closed]

Tommy Twit’s mother measures the departure of any bundle from her favorite bundle for Tommy by the sum of the absolute values of the differences. Her favorite bundle for Tommy is (2, 7), that is, 2 ...
842 views