REPORT

These sometimes may be ranked, in the sense that one is preferred over another, but the unaided market will not move the economy to the preferred outcome.

• Bad Equilibria

• Good equilibria

• Equilibria

• Multiple Equilibria

A positive or negative spillover effect on a firm’s production function through some means other than market exchange.

• Technological externality

• Information

• Assumptions

The result can be an ____ in which a region remains stuck in subsistence agriculture.

• Underdevelopment Trap

• Development Trap

THE FOLLOWING ARE THE POSSIBLE PROBLEMS OF MULTIPLE EQUILIBRIA, EXCEPT ONE. Choose the correct answer

• Behavior and Norms

• Linkages

• Inequality

• Efficient Advantages of Incumbency

List down your observation about the given picture.