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What is the opportunity cost of your going to college? List components of the opportunity cost. Be sure to include all costs, including the value of what you might otherwise have done with your time (including forgone leisure time, working) as well as the price of tuition, books, et cetera.
The pricing of roads is often cited as the mechanism to manage demand in the theoretical literature starting from Pigou in the year 1920. Many articles took into account the compelling case for the utilization of the mechanism as management for congestion as well as optimizing congestion along with network investment.
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4 How are oligopolistic markets different from monopolies? Describe how the short run and long run equilibria may differ for each market case. 6 Describe how the assumptions for the different markets (perfect competition, monopolistic competition, oligopoly and monopoly differ from each other.
The exchange rate regime used by a country greatly influences the effectiveness of the monetary policies of that nation. In this paper, I rely mainly on the IS-LM BP model to explain the influence of the exchange regime use on the effectiveness of its monetary policy. This model is among the most popular standard macro models that explain different characteristics of an open economy.
In particular, this discipline carries crucial importance on the lives and welfare of every human being. Any economy that has thriving macroeconomic management should be in a position to experience low rates of unemployment and inflation with a steady and sustained economic growth and vise versa (Bade and Parkin 1983).
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The Occupy Wall Street Movement that occurred in 2011 in the United States of America raised several questions about the ways in which the world is organized today. The manner in which the economies of the world function is unacceptable to many.
These firms add capital stock to the host countries, which leads to an increase in the output levels of these countries. Apart from the increase in capital stock, host countries benefit from management skills. These effects have a direct impact on the economic growth of the countries. Foreign firms also increase employment in these countries.
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With the emergence of many small and medium carriers, large airlines are subject to significant threats too. Air France KLM appears to be in the most unprofitable position in terms of its short-haul operations. With regard to the past trends of these three airlines, an analysis is done to forecast their future prospects in the industry.
In a closed economic country, all economic activities are conducted within the boundary of the country. Such an economy means the country does not accept imports from other countries and does not export to foreign countries. The main objective of this type of economy is to make everything available for people within the confines of the economy.
The focus of the case study will be entailed on the endeavor adopted by different governments for neutralizing this grave problem. Finally, the paper will inject some self-assessed recommendations for solving the problem of unemployment, a major indicator reflecting the economic health of a society.
As for example in an area there is an established Information Technology (IT) company which provides a huge service to the customers in that area and has earned a huge goodwill in that market. This means that the company is a dominant player in that market and posses the price mechanism in its hand i.e., it can charge variable price from time to time for the products it sell and a new IT firm will find it very hard to enter into his market as it will find unprofitable to enter this business.
Since international trade has tremendously impacted people, management and economies worldwide, today’s savvy business people are able to explore in to wider marketing opportunities beyond national boundaries. This speech presents international trade in relation to balance of payments, impacts of surplus imports, relation to GDP and exchange rate etc.
Why are Oligopolies tempted to collude even if it means breaking the law? This essay deals with oligopolistic market structures and incentives that push them towards collusion. In doing so, it discusses the characteristics of oligopolies, collusion, cartels, game theory and the kinked demand curve.
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Algeria is a North African country that borders the Mediterranean Sea, Morocco, and Tunisia. Most of the country's land is plateau and desert with arid to semiarid climatic conditions. The Algerian economy is highly dependent on oil and natural gas export in addition to Agriculture. About 45% of Algerians live in urban areas.
The main aim of the essay is to show how the countries economy has changed after SAP adoption. Structural Adjustments were a set of policies implemented on developing countries by the IMF and World Bank. These policies targeted areas like reducing expenditure, focusing on economic growth and output, increasing trade liberalization and stability to increase foreign investment etc.
Each question should be only two to three typed pages, times new roman, twelve point font and at one and a half spacing. Part One: Compulsory Question 1. With reference to your team’s group of countries identify and discuss key features of inequality in developing countries.
The perfect economy offers choices that are price-influenced. Question 1. The monopoly market structure is defined as a business environment where the industry and the sole entity are one and the same. In the 2008 Northwest’s monopoly style potato chip industry, there is no substitute for the lone Wongs potato chip products sold in the potato chip market segment.
Weather Phenomenon vs. Crops Prices.
Commodity prices are generally influenced by a number of economic factors, the most common being the demand and supply of the commodity in the market. Nevertheless, the forces of demand and supply are also influenced by other macroeconomic factors such as the prevailing weather patterns at any given time that can either increase or reduce the production of a particular commodity.
China’s economy is facing a decreasing labor supply with the government formulating policies that are likely to accelerate the decline in the country’s workforce. Economic planners in this country face the task of making the necessary transitions that can help in avoiding a slump in the growth of the country’s economy.
Ensuring the good health condition of the citizens who are consumers is a common role of businesses and governments. This calls for various economic and legal measures that promote the health of consumers. It, therefore, is an economic issue that also involves the intervention of policies and laws of the government.
This is facilitated by the private sector and banks by means of electronic money. The liquidity and funding in the money market increases by a growth in the money supply due to a rise in capital in banks and other financial institutions (Wieland, 2009). Quantitative easing is divided into expansionary and contractionary policies as well.
With diversity in mind, and first business growth cognate with globalization, the company expanded to other parts of the world diversifying their services. XYZ Inc. introduced products such as, Software developments and maintenance, Business Processing and Outsourcing.
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The Philippines is a densely populated Southeast Asian country which gained independence in1946 after the defeat of Japanese forces by the Allied troops in the Second World War. The country is a democracy with a presidential form of government. The Philippines enjoys good relations with United States, Middle East, and China.
The success of the product and the company depend on both the macroeconomic and microeconomic factors that influence the sale of the product. Apple's success is dependent on the IPhone’s demand and supply, which affects the sales and profitability of the company. Apple operates in a perfect competition market but it has chances of creating a monopoly through technological advancement.
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The Greater Arab Free Trade Agreement was signed and brought into existence in the year of 1997. This is the agreement signed between various Arab countries including Egypt, Libya, Bahrain, Oman, Qatar, Syria and many others, making it up to fourteen countries.
And stressing upon this assumption coupled with the evidence of the behavior of the agents (the domain of social interaction), economics has been able to develop various stylized theoretical models for analyzing those interacting patterns and generating optimal solutions for the attainment of the general welfare of the people.
Sales Tax in Canada.The influence of government in the economy is of a great magnitude given that they issue policies and impose taxes (Bird, 2009). Taxes serve different functions in the economy and one of their critical uses is raising revenue for the government (Bird, 2009).
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This, therefore, means that the waste and its effects are a result of market failures. Identification of the problem is a key factor here and it involves looking at all the externalities of the various economic activities and the economic activities that are associated with them. Problem analysis is the other factor that we consider here.
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He argues that in order to find out who killed the economy it is important to know what or who caused the crisis in the first place. According to him focusing on the notion of causation will not only help in fixing the current crisis but also help to figure out how to prevent another crisis in the future.
The country needs to develop a coherent elevation policy to improve its infrastructure quality to enhanced standards that can successfully support growth and economic development. When compared to China, India’s infrastructure is quite poor weakening the country’s economic expansion endeavors.
Firstly, the manager should consider the costs of additional capital as compared to cost of employing new workers. Moreover, he should also consider whether adding new workers will help increase the output or it will result in falling output. In the short run, the capital is fixed and as more workers are added to the fixed capital, initially with each additional worker the marginal revenue product of the labor will increase as the restaurant will experience increasing returns to scale.
Free market system which is the most productive way of running an economy suggests that any intervention by forces other than demand and supply will tend to affect the economic efficiency negatively, resulting in production inside the production possibilities frontier rather than on it.
Government spending is undertaken with the intention that it will boost the country’s economic growth. And it does. The higher the Government Spending, the more availability of public goods in the country, proving to be beneficial for the citizens of the country. Public spending is a key factor in the state’s economic growth and development.
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The fluctuations in terms of price of different commodities also have a significant effect on the purchasing power of the individuals. It is in this context that income effect fundamentally refers to the response of the individuals in relations with their purchasing powers (Miller, 2012).
Economics is everywhere. People deal with it every day, just choosing to ride a bus or take a walk is an application of economics. When planning to take the bus, one should take into consideration the available money and the possibility of traffic jams. Also, when deciding to walk, available free time must be considered since walking consumes more time.
Due to the on-going liquidity crisis in Europe, the European banks including other financial institutions are facing difficulty in getting access to short-term credit. Aside from its implications to the U.S. economy, the on-going European economic crisis will also affect other global economies.
The company is also said to have a leading position in more than 50 countries and operates in more than 180 countries across the globe. The companies main brand products include Kent, Dunhill, Pall Mall and Lucky Strike (Britannica Educational Publishing and Rogers 2011 p.177-198).
As monopoly proceeds, the consumers will ultimately forego the product, especially consumers who value the product or service more than they value its cost. This tends to create a deadweight loss. The deadweight loss also indicates that the combined surplus for the monopolists and the consumers is always lower than that for perfect competition.
There is a multiplicity of sites, some real, some virtual, where national transactions are governed. The states now share center stage with international entities like the World Bank, International Monetary Fund, and World Trade Organization. Treaties among states create these international organizations.
His annual income is although not that high but allows him to maintain a standard life style. He has been able to afford a car which he uses for family purpose. He is going to get married in the coming years and so he is concerned about his savings. He prefers a tradeoff between price and quality and always wants to hunt for the product of highest quality at lowest price.
What strikes a stronger and more emotionally deep chord with the audience is how the blame for keeping sweatshops in operation falls completely on the shoulders of the average consumer.
In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks employed a management consulting company, which projected a diverse long-run competitive equilibrium. This paper is aimed at providing a descriptive and analytical structure with a critical thought regarding the acquisition of benefits by the stakeholders of the company, including the government, businesses, and consumers.
Outsourcing had more benefits for the exporting countries and firms than it did for countries and firms who were not exporting. The authors elaborated in this study that a possible reason might be that countries and firms operating internationally have more knowledge about this practice and thus face lowers costs in the process.
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Wet/Dry: A Status of the United States Alcohol Sales.
Traditionally, the United States has implemented a total prohibition with regard to buying and selling of alcoholic beverages; however, the government perception about the prohibition was changed during the beginning of the 20th century.
The essay seeks to find economic solution to the challenge of unemployment, that countries are facing now in the aftermath of the crisis. Micro and macroeconomics activities demand fiscal support and source their rewards by selling their products and services to the population. The population’s wealth states the success of the economic endeavors.
The mere mention of monopolistic competitive shows that there are many small competitors in the same market. The competitors sell different products that can fill the same need. For example, the grocery store sells different brands of cheese. Each potato chip market type has its own benefits and peculiarities.
In highly turbulent periods, the ability of industries to support national economies is usually decreased. However, there are industries, like the oil and petroleum industry, which have managed to keep their competitiveness and remain intact from global market pressures. The current paper focuses on the oil and petroleum industry of the UK.
Also the lower level of investment is creating negative effects on the level of production and thus on the amounts of banking deposits (Bexley et al., 2011, p. 2). This paper is aimed at describing the effects of the financial crisis on banking industry. The issue and positive and negative externalities: The list of disturbed banks on the watch list of the regulatory agencies is at a strangely high stage as well as is the absolute number of banks which are bankrupt and are forced to close.
The fact that the United States is still the leading economy notwithstanding; this country has managed to capture markets both in the developing and developed nations, especially due to the reduced prices on their products facilitated by cheap labor in the home country.
Lane and Banks (2010) present a survey report that examines the attitudes and aspirations of consumers after the global financial crisis. This report presents interesting findings that depict consumer behavior in the United Kingdom after the end of the global financial crisis and salient statistics from this report are in the figures below.