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The income taxes were reduced to half of the prevailing rates at that point of time and the corporate tax rates were also reduced from 39% to 30%. At present the debt obligations of Puerto Rico has piled up to 87 billion dollars and the country with 3.7 million residents is all set to go bankrupt.
In the case of technology as an input, decreasing returns to scale would lead to a decreasing average cost in output. For constant returns to scale, the average cost in output would be constant. When the technology factor exhibits increasing returns to scale, the average cost would decrease in the output (Ferguson, pg47).
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4 pages (1000 words)
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Wal-Mart is one of the biggest retailer stores that have expanded globally to more than 15 countries in the world including UK, China, Japan, Canada, Brazil and Argentina with over 8,500 retail stores. It employs over two million employees and made it to the top of Fortune 500 list for its highest number of sales.
Firms tend to use pricing tactics, such as price discrimination, in the hope of gaining a high competitive advantage. Pundits argue whether firms must use or not such a pricing technique because of its nature. This notion brings interesting arguments, which may be used to provide firms with salient reasons about when to use it and when they should not.
5 pages (1250 words)
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, Book Report/Review
In the book, it is made clear that the conflict of classical liberalism and central planning was not concerned about the shared objective of improving the well-being of the largest number of populations but concern on the way to achieve the specified goal.
The insurance industry has greatly impacted and been impacted by the market. The industry has evolved and has managed to survive and flourish in a short period of time. The factors affecting the insurance market in a positive and negative manner are fully utilized so as to benefit from the opportunities and counter the risks that the industry faces.
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, Personal Statement
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My experience in the practice of economics is limited – but from what I have experienced at high school, I know this will be a field that I greatly enjoy. Two of the subjects I have always loved the best in my high school experience are math and history, and I think the way that economics must take both of these into account is truly fascinating.
No freedom is viable without economic freedom. The world has witnessed the failure of the planned economy with the fall of the former USSR. However, certain features of the planned economy are still visible in the form of socio-political interventions that take place in mixed economy capitalism. Such policy interventions by the government are dangerous.
Eutrophication Potential (EP)-Comparing this is insignificant since both the forms; the diesel engine and the fuel cell have the same amount of eutrophication potential. While one has the Nox emissions occurring in the areas where the vehicle is operating the Fuel cell for the electric vehicle produces these emissions at the refinery.
He emphasized upon the aspect of freedom. While in England for a short while, he wrote Economic Sophisms, which were a collection of his dialogues and sarcastic writings with an intention of criticizing the fallacy driven French economic ideas. He wrote most of his works in and around 1848 when France was gradually accepting socialism.
Wayne Swan is of the opinion that the Australian economy is in a strong position and warrants a positive economic outlook despite uncertainty in global economic circles (Australian Government, 2010). Australia registered an annual growth of 3.2% in the GDP till the second quarter of 2010 which is unlike other developed economies that have displayed either slower growth or negative growth.
Outsourcing basically involves contracting out non-core business functions to a provider external to an organization. In other words, when two organizations enter into an outsourcing agreement, one agrees to exchange a certain service or set of services for payment by the other.
Tissot, one of the branded Swiss watch manufacturers founded in 1853 came into the limelight by manufacturing the first anti-magnetic watch in 1929-30. In present times, Tissot is associated with various sporting events developing more accurate timing systems for a specific event. During this tenure, there are several factors that affected the sales and profitability of the company to sustain itself in the industry.
This essay discusses the several types of inflation and the impact created by these types, along with determining and discussing which type of inflation actually creates the most damage to the economy. The term deflation means that the prices of goods and services, in general, are on a decline during the financial period.
Generally, people are willing to pay more for higher quality products whereas they hardly purchase low quality products at higher rate. Therefore, every customer tends to scrutinize product/service quality (if possible) before they make a purchase. Usually, customers categorize products on the basis of predetermined quality grades and these grade levels play a crucial role in influencing product/service demand.
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.
These influence economic indicators which are reflectors of economic advancements within demography. Politics determines the peace and the level of stability in a country. These two, on the other hand, affect economic growth. Indonesia has been a victim of poor governance and weak political structures for a long time.
8 pages (2000 words)
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The world economy is currently at its worst with most countries hit by the pinching global recession. Economists define financial crisis as a significant downturn in activity that affects all the economic segment, the decline in activity normally last for a certain period, which could be more than months or years.
6 pages (1500 words)
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The number of unwaged civilians declined from 88,710,000 to 88,341,000, this subsequently led to an increase in the number of the employed by a margin of 410,000 to stand at 143,384,000 and the unemployed also to increase by 170,000 and stand at 12,258,000.
Normative statements represent an opinion, or a theoretical scenario, and they are always used to develop new ideas, and establish goals. An example of a normative statement is such as; the government should reduce taxes by half, in order to increase the level of disposable income within the state.
The answer to this question is largely dependent on a country, as different countries have different methods of computing what is to be subjected to taxation from the security funds. The conventional knowledge would argue that as one grows older, the burden of taxation should reduce, this is not particularly the case in some cases when one has some of the income generation activities while at the same time having security funds; thus, security funds will be subjected to limited taxation.
In this era of competition where economic supremacy can impact various other aspects of a given nation, the need of monitoring economic performance has gained a special attention among the nations. In this regard the economists worldwide has suggested various measures amongst which Gross Domestic Product commonly known by its abbreviation of GDP has become the most popular indicator that measures the health of the nation’s economy which in turn impact the standards of living of the nation.
Economic planning can be used for the replacement of imports by home products. If the defects of home products can be analyzed, and the likely future trends in demand can be forecast, then domestic firms can take the necessary action both to improve their product and to expand their capacity. Government support for certain industries can also be helpful here.
The Bretton Woods Agreement was developed in New Hampshire in 1944. The major outcomes of the agreement were the formation of an International Monetary fund. The system proposed the introduction of a pegged foreign monetary exchange rate system that was adjustable. Other countries' central banks were made to maintain a fixed exchange rate.
This results in the emergence of an economic equilibrium for both quantity and price. Considerations of the power of supply and demand within the market date as far back as the 14th century. This paper will consider the subject of supply and demand, discussing its inherent provisions and assumptions.
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According to the report two countries where labor issues are quite prevalent are Qatar and the United Arab Emirates. Both countries have a large influx of immigrants who come in for work hence a high rate of labor issues. It is difficult to create labor laws that fit both the needs of the citizens and non-citizens.
This paper elucidates on the major changes, that took place in the economic front, especially as a result of the crisis, that resulted in diminished access to liquid cash and real capital. Today, building credit has higher prominence than building real wealth because businesses became increasingly dependent on credit to supply goods and services.
Monopoly and Microsoft. The question of whether or not Microsoft represents a monopoly has long since been settled. With fully 90% of all computers running Microsoft operating systems, the reality of the current market speaks for itself. However, even though it is been demonstrably proven that Microsoft is in fact a monopoly, a further question that must be engaged is whether or not this monopoly could somehow represent a benefit to the consumer.
The relationship between the political forces in the United Kingdom and the banking industry is subject to change. With that in mind, it must be understood that past experience with regards to the banking industry cannot and should not be determined to be equivalent to future expectations of how the industry will evolve and continue to be manifested.
The states of economic affairs in the global marketplaces have become highly complex over time. Modern countries operate in the market by following the motto of free market principles. After the emergence of privatization associated with globalization and liberalization of the world economy, the powers of the public and private authorities in the economies have changed over the years.
As recorded in 2012, the country had a growth rate in a real gross domestic product (GDP) of about 2%. The estimated real per capita GDP of the country was about $36900 as recorded in 2012 (“The World Fact Book”). The major sector of the economy that contributes a wholesome amount in its GDP is the service sector (7.5%).
Inflation yields positive effects only if it is a short-term inflation but a long-term one where even the central bank has no capacity to handle looms disasters not only to a country but the globe in general due to the fact that the world has become a global village. Some of the causes of inflation ) can be prevented or mitigated early enough.
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‘The public debt, which is sometimes called the federal or the national debt, is the total amount the federal government owes its creditors.’ (Arnold, 2008) The reduction strategy for budget deficit involves decreasing the public expenditure or increasing taxes or a combination of both.
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The financial crisis of 2007-08, not only led to the collapse of several banks and financial institutions but turned down the stock markets in most of the countries. The financial crisis has led to one of the largest banking shakeouts due to the meltdown of loans and savings.
These two parties decide what to produce and what to purchase. A free market economy is based on the forces of demand and supply with little or minimum government intervention in the form of subsidies, taxes and regulation (Kates, 2011:34). The means of labour are privately owned and this enables parties to according to their own self-interests.
In fact, the country has seen long periods of deflation before the Second World War. The last economic expansion took place between March 1991 and March 2001 when the rate of inflation was low by the standards of the post Second World War era, which holds true irrespective of the kind of index used to calculate the rate of inflation.
Generally, in the economic analysis, there are various kinds of market structures that may operate in the economy depending on the number of sellers and the degree of market power that each seller has in the market. Therefore the market structures of an economy can be categorized under the following types.
With the help of modern techniques, up to date procedures, contemporary practices, globalization and highly advanced transportation system the International trade system is spreading really fast. 1) "Trade restrictions will stop foreign imports, which will increase American employment and protect American jobs." Most economists realize this argument is wrong.
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Marketplace realities surrounding the firm in question are the defining characteristic in terms of price and profitability. The decision of what the price for any given product or commodity should be made often has little to do with what it actually costs to produce and distribute a particular product.
The economy of the United States in the past few years has gone through a major slump. This slump has been seen through their real estate crisis, rise in unemployment rates, and reduced competitiveness in the global economic setting. This economic crisis was not helped by the matching economic crisis felt in other western nations as well.
The expansion of world markets by rapid globalization also means increased competition. The improvements in technology have allowed business organizations to coordinate their business activities with the rest of the world by using facilities such as e-mail, phone, fax, and video conferencing. Different cultures have different ways of business.
Professionals and patients in contemporary Australia increasingly become involved in care situations that are likely to lead to death, there has been an increase in the literature devoted to such issues as palliative care and end-of-life decision-making. The objective of all concerned in these situations is to ease the transition from life to death.
Courts, and the public in general, view the expert evidence as more authentic than the conventional evidence like documents, witnesses, statements, behavior in court, and other forms that might be submitted by the opposing parties. such evidence carries considerable weight in jury decisions, especially if it goes in accordance with circumstantial evidence.
Scarcity is defined as an “Ever-present situation in all markets whereby either fewer goods are available than the demand for them, or only too little money is available to their potential buyers for making the purchase. This universal phenomenon leads to the definition of economics as the science of allocation of scarce resources".
1a. Price elasticity of demand (PED) is the extent to which quantity demanded changes to a change in price (Bamord, Brunskill, Cain, Grant, Munday, Walton 2002). When PED of a good is between 0 and 1 then it is said to have inelastic demand with the good being more inelastic the closer the value is to zero.
For a couple of decades now, Wal-Mart has been characterized as being the leader, the dominant firm and the Big One Retail Company, all relatively smaller firms look up to. The main reasons behind this are multifarious, with the consumers benefitting the most among them. This paper attempts to focus and analyze the impact of the merger of the smaller firms in the Retail Industry, with the Major leader – Wal-Mart.
The term real business cycles (RBC) means recurrent fluctuations in an economy’s income, products, and factor inputs (especially labor) that are due to non-monetary sources (McGrattan, 2006). As a result of these fluctuations, individuals consciously change their consumption and labor supply (Mankiw, 1989).
As eHow.com puts it, “a closed economy is just a theoretical concept as no perfectly closed economies are still in existence.”1Globalization has led to removal of barriers to trade and allowed flow of capital and employees in and out of the country. Advocates of an open economy argue that opening the country to international trade creates employment, provides a variety of goods and services to consumers at low prices, increased investment opportunities as well as economic growth.
Consumer well-being is increased by lower prices on imported products and a greater variety of products available in the market. Further, production efficiency is improved by specialization based on comparative advantage and increased competition from foreign businesses, thereby raising the country’s gross domestic product (GDP).
Economic growth is defined as the increased capacity of a country’s economy to produce goods and services in comparison to a previous period and is measured by the gross domestic product. Economic growth leads to better living standards for the population and higher rates of employment. Different theories are used to explain economic growth.