What kind of structural reforms should Latin American countries promote in order to encourage more foreign direct investment and promote sustained economic growth?
In: Economics
An electronics company estimated the investment cost for equipment for producing replacement CCTV will be $800,000. The operating and maintenance cost is expected to be $500,000 per year with an annual revenues estimated at $650,000. Considering MARR of 15% per year, find: The simple payback period=??years The discounted payback period=.??years
In: Economics
a. Suppose that government would like to maximize tax revenue. Explain why it may not be a good idea for the government to lower tax rates for the goods that have very low price elasticities of demand (less than one).
b. Suppose that the government wants to maximize tax revenue. Explain why it may be not a good idea for the government to raise tax rates for a good with a price elasticity of demand more than one.
c. Use a demand/supply diagram to discuss why producers for luxury goods may benefit from a technological improvement in producing the goods.
In: Economics
In: Economics
1a) Suppose your company is faced with the following demand curve: QD = 600 – 100 P. The price elasticity of demand, ED , at a price of $5 equals _____, and the price elasticity of demand, ED, at a price of $1 equals _____
1b) Assume that the demand equation for exercise watches, such as the Fitbit, is QD = 2,200 – 15 P and the supply equation is QS = 15 P – 800. After a favorable study shows that using exercise watches significantly reduces users' weights, quantity demanded increases by 300 at every price. The new equilibrium price will be _____ and the new equilibrium quantity will be ____
1c)In the market for oranges, we observe that the equilibrium price increased and the equilibrium quantity increased. What could have caused this change?
1d)The demand curve for a good is Q = 80 – 0.20 P, where Q is the quantity demanded and P is the price per unit. This good's inverse demand curve is:
In: Economics
In 2018 the United States and China entered into a trade dispute that led both countries to impose tariffs on each other’s goods. Economists concluded that the tariffs contributed to slower growth in real GDP for both countries, though the effects were greater in China. Using aggregate demand and supply analysis explain and graph how a trade surplus can lead to a slowing real GDP in both countries.
In: Economics
9.T/F
a. A tax increase will have less of a direct impact on income, employment, and output than will an equivalent increase in government spending.
b. Currency fluctuations affect aggregate supply and demand.
c. In June 2013, the Bank of Japan announced that it was
continuing its easy money policy through open market operations.
The Bank must have decided to continue to sell
securities.
In: Economics
Is it true that for any production function diminishing marginal return to each factor implies decreasing returns to scale? (with proof using the general production function, if possible)
In: Economics
one of the marketing characteristic of packaging is to drive association created by advertising into the consumer mind. Discuss specifically what this means, using several marketplace illustrations to support your explaination.
In: Economics
For Friedman inflation is a monetary phenomenon - given increases in the Money supply in the US and in other countries, are we seen inflation increasing? Why yes or why not?
In: Economics
The economy is estimated to be growing at .02% annually, what policy will keep the economy out of a recession? Use the three economic variables: Government spending, Taxes, and Money supply in your reasoning. Your goal variables are: Real Gross Domestic Product, Prices, Interest rates, wages, and employment. Describe your proposed policy changes, how they might be implemented, and what effect they are expected to have on various sectors of the economy.
In: Economics
In the Solow growth model with diminishing marginal returns to capital, explain what happens when the savings rate increases.
In: Economics
In: Economics
Explain two theories or frameworks for understanding how Western Europe emerged out of 1,000 years of feudalism.
(e.g. 2-3 well-reasoned paragraphs).
In: Economics
How would the S/D curves shift if a $3 tax was imposed on suppliers for each unit of caviar and milk sold? With visuals please explain how the economic incidence, DWL, and welfare effects differ between the two goods and why?
How do you determine if the demand and supply or elastic or not?
Can Aishwarya Verma not respond please. I would like to understand from someone else's explanation.
In: Economics