How the gender pay gap happened and where it stands today. Include strategies on how the gap can be closed.
In: Economics
Given the following estimated demand equation Answer the following questions
“From the data for 50 States in the United States for 2015, the following Regression Equation was estimated:
Ln C = 5.75 – 1.29 LnP + 0.67 LnY - 0.022LnA - 0.03LnExcT
T- Stats: (0.91) (1.45) (2.45) (1.02) (2.04)
R2 = 0.87;
T- table value at 95%; and 46 degrees of freedom is 1.96.
Where C = Cigarette consumption packs per year
P = real price per pack
Y = Real disposable income per capita
A= Per capita Advertising expenditure
Exc = Excise tax per packet
T-values are all in the parentheses
a). What is the elasticity of demand for cigarettes with respect to price? Is it statistically significant? Interpret this number in plain English
b) What is the Income Elasticity of Demand for Cigarettes? Is it statistically significant? Interpret this number
c) Some people claim that Advertising has No bearing on consumption of cigarettes. Do you agree/ Why or Why Not?
d) Using your calculator, or EXCEL can you predict the level of Consumption of Cigarettes when the Price per pack is $6.25, Income per capita is $69,600, and Advertising expenditure is 30 million dollars? What is that number?
e) Suppose the State of Wisconsin is proposing to increase 10% increase in its Excise tax on cigarette for collecting more “sin-tax” and to promote healthy life-style. Do you think that measure will change anything? Why? Or Why not?
In: Economics
In the postwar period, the US was the leading nation in the creation of much of the systemic architecture of the global economy. Whether with military alliances, the Bretton Woods system (including the World Bank and the IMF), the GATT treaties and the WTO, the OECD, or even the United Nations, the US played a major role in the creation and maintenance of the rules by which countries interact. Yet recently, the US has been walking away from these rules and institutions. Why has this happened, and what are the implications if this continues?
In: Economics
What additional environmental issues did Nestle` need to address? What was the solution?
In: Economics
Describe how Marriott might employ lead user analysis to better
align its proper-
ties and services with the needs of the executive traveler.
Evaluate this statement: “To increase the speed of the
new-product-development
process, a firm might follow one strategy for unpredictable
projects and an entirely different one for more predictable
ones.”
In fast-changing high-tech industries, some firms have a better
record in devel-
oping new products than others. Describe the critical factors that
drive the new
product performance of firms
In: Economics
The country of La la land has an agrarian economy and only produces food on a fixed supply of land. The production of food per person hasn’t increased for a very long time even though better fertilizers have become available. Seeing this an economist tries to understand the country’s predicament using a mathematical model. Production in the model is given by a function that combines land and labor in the following way. Y = AL0.3N 0.7 Everything that is produced in the economy is consumed. I.e. C = Y . The economist also finds that the growth ratio of population given by N0 N has the following relationship with nutrition levels, measured by consumption per capita. N0 N = 0.5 C N 0.5 Note that N0 can be written as Nt+1 and N as Nt for notational purpose. (Show Work)
(a) Using equations in the question, write N0 in terms of the parameters A, L and population N.
(b) On a graph with N on the x-axis and N0 on the y-axis, show the country’s level of population in the long-run. Argue using the graph why this is the level of population.
(c) Compute the level of consumption per capita in the long-run.
In: Economics
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Suppose the economy is operating in long-run equilibrium and a positive demand shock hits. We expect a short-run increase in real GDP and the price level and a long-run _____ in real GDP (in comparison to the then short run GDP) and _____ the price level (in comparison to the then short run price level). |
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| Changes in aggregate demand can be caused by changes in: | |||||||||
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| An inflationary gap will be eliminated because there is _____ pressure on wages, shifting the _____. | |||||||||
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| In the short run, the equilibrium price level and the equilibrium level of total output are determined by the intersection of: | |||||||||
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In: Economics
1) The (real) wealth effect is reflected in:
a) the downward slope in aggregate demand
b) increases in interest rates to savers.
c) the upward slope in aggregate demand.
d) the upward slope in aggregate supply
| Suppose that the economy is in long-run macroeconomic equilibrium and aggregate demand increases. As the economy moves to short-run macroeconomic equilibrium, there is a(n) _____ gap with _____. | |||||||||
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| The short-run aggregate supply curve is positively sloped because: | |||||||||
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| According to the short-run aggregate supply curve, when the _____ rises, the quantity of aggregate output _____ rises. | |||||||||
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In: Economics
Suppose investment levels are alarmingly low. Using the AS/AD model, explain whether government should increase or decrease its expenditure.
In: Economics
What is your position on a $15/hour minimum wage in your area (you may need to look it up for your location)? In regards to the fast food industry, what would be the short-term ramifications? How about the long-term effects? Should the minimum wage be nationalized? Explain.
In: Economics
Suppose the Fed’s rule is given by: r = αY + γZ. (Show Work)
(a) Draw the AD curve.
(b) Due to budget cuts, government expenditure decreases in a given year. What is its effect on equilibrium output and price level?
(c) How does the change in price affect investment levels? Explain the mechanism clearly.
(d) Does the price change affect the level of output?
In: Economics
Using a diagram, outline why Malthus believed technological improvements would not improve living standards. Explain your reasoning why you agree or disagree with Malthus’s analysis.
In: Economics
Suppose we live in an economy with just one bank. Mary is the first customer of the bank and makes a deposit of $500. The required reserve ratio is 10%. (Show Work)
(a) What is the excess reserve amount? With this amount of excess reserve, is the bank allowed to make any loans?
(b) What is the maximum amount of loan that the bank can make if the borrower does not withdraw the money.
(c) What is the maximum amount of loan that the bank can make if the borrower decides to withdraw $100.
(d) What is the money multiplier?
In: Economics
Philips Medical Systems in 2005 (HBS 9-706-488)
How strategically necessary were the acquisitions Philips Medical Systems made between 1998 and 2001? Should they have made the commitment to medical systems that they did?
2. Compare Philips Medical Systems with GE Healthcare and Siemens Medical Solutions in terms of the amount of leverage it has managed to create for itself vis-à-vis each of the AAA strategies.
3. How might Philips Medical Systems significantly improve its position? In particular, should it focus on creating a competitive advantage for itself around a subset of the AAA strategies and if so, which one(s)? Should they apply the “one, two, or out” rule if unable improve their position significantly?
In: Economics
Technology and Production Theory
The ABC Corporation produces just one product, widgets. The company’s new economist has calculated a short-run production function as follows:
Q = 7L + 0.6L2 – 0.1L3
Where Q is the number of widgets produced per day and L is the number of production workers working an eight-hour day.
Develop a production schedule with L equaling 1 to 10.
Calculate the Average and Marginal Product.
In: Economics