discuss the economic system in ethiopia over the recent three regimes
EPRDF
Derg
imperial regime
Answers
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Economy of Ethiopia
Economy of EthiopiaUnder Haile Selassie I (reigned 1930–74), Ethiopia’s economy enjoyed a modicum of free enterprise. The production and export of cash crops such as coffee were advanced, and import-substituting manufactures such as textiles and footwear were established. Especially after World War II, tourism, banking, insurance, and transport began to contribute more to the national economy. The communist Derg regime, which ruled from 1974 to 1991, nationalized all means of production, including land, housing, farms, and industry. Faced with uncertainties on their land rights, the smallholding subsistence farmers who form the backbone of Ethiopian agriculture became reluctant to risk producing surplus foods for market. Although land has remained nationalized, conditions in rural Ethiopia have improved slightly, as the government has given considerable attention to rural development. Still, the question of land ownership has remained contentious and has hindered the development of commercial agriculture.
Explanation:
firm faces the production function Q = 20K0.4L0.6. It can buy inputs K and L for 400 a unit and 200 a unit respectively.
What combination of L and K should be used to maximize output if its input budget is constrained to 6,000?