The utility maximization

Using the utility maximization diagram in chapter 6, graphically illustrate the effects of higher income on the number of children that a family will choose to have. Assume that children are inferior goods.
What is the Malthusian population trap? In the context of the Malthusian population trap, explain the role of OECD countries in helping a country out of a population trap.
Investment in human capital is very similar to investing in physical capital. True or false? Explain your answer.
What is the Great Gatsby Curve? As an economic policy maker, how would you change the education policy in order to reverse the Great Gatsby curve?
According to Sachs, what is the demographic trap? Why will a demographic trap prevent a country from reaching a higher level of development?
What is the Millennium Villages Project? According to Sachs, how large of a development assistance was needed in order to get the project going?

Sample Solution

Ikea Communication

Compelling correspondence of IKEA correspondence is the way in to a fruitful business since everything is appropriately actualized, working easily and being sorted out well. Inside an undertaking, correspondence happens not just between the organization and its buying clients, yet in addition among them and all providers of partners associated with the business. This incorporates all interior and outside clients. On the off chance that the chose technique is relevant to the administration and the collector circumstance, compelling correspondence is made.

IKEA ‘s correspondence centers around IKEA’ s inventory, site and sovereignty program. The list is imprinted in 28 dialects, and duplicates of 190 million duplicates overall are circulated in 35 nations. In Europe, inventories are accessible to 200 million individuals consistently, more than 300 pages and in excess of 12,000 items. It is dispersed gratis by shops and mail. IKEA will likewise post notices as a wellspring of data through room magazines and the Internet. In 2005, 125 million guests from everywhere throughout the world visited the IKEA site. Worldwide site permits access to different destinations

In that history, IKEA prevailing with regards to building a world popular brand. The most well known advancement is the item list of IKEA. Consistently, IKEA prints a list and sends it to neighboring purchasers in mass to present the most recent items. IKEA has various purchaser sites to give on-request valuing and item details to likely clients. IKEA will advance overall buyer driven TV channels and advance stores and item ideas focused on nature (IKEA.com, 2004)

• Ikea must keep up great correspondence with customers and investors on natural conduct. The extent of the errand makes it hard to allocate this. IKEA produces diaries online with prints. For example, “individuals and the earth”, thus that the business can build up contact with different objective gatherings, execute significant TV projects and radio advancements. At the end of the day, the achievement factor of IKEA is brought about by different hypotheses. IKEA’s business reasoning backings the extension of the IKEA realm and its effect and incentive on an overall scale keeps on entering. It got around the world, however it remembers the limitation, and those methodologies are being balanced in an inexorably questionable financial condition. In view of IKEA’s current plan of action, gracefully chain, imaginative item structure, and inexhaustible crude materials, IKEA will additionally create.

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