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a) The ceteris paribus assumption is much weaker than the controlled experiment of a laboratory science. Comment on this statement by defining the tem ceteris
a) "The ceteris paribus assumption is much weaker than the controlled experiment of a laboratory science". Comment on this statement by defining the tem ceteris paribus and explain the reasons why the above statement is correct. b) Identify which of the following are macroeconomic issues and which are microeconomic issues? 1). The inflation rate in Tonga in the last 10 years. ii). Why the price ofkava fluctuates more than that oftaro. i). Samoa'srate of economic growth this year compared to last year. iv). The rate of exchange between the Fiji dollar and the Tongan pa'anga. v). Who is paying more tax on inelastic demand goods, buyers or sellers? c) Discuss under which circumstances would the production possibility curve be; 2) a straight line, (b) bowed in towards the origin and clearly state whether these circumstances ever likely to happen. d) In Tonga non-govemment schools are a significant part of the primary secondary and tertiary school sectors. If a 4 per cent increase in income causes the number of students who want to attend non-govemment schools in Tonga to go up by 6 per cent, what is the income elasticity of demand for non-govemment school education in Tonga? What does this tell you about the private school education in Tonga
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