Discuss Foreign Direct Investment as a method for internationalization, including the motives and selection decisions for locating FDI.
In: Economics
Do any labor and employment laws strike you as unfair and would you seek to strengthen or weaken current employment laws if you could? If so, what would you change?
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Consider the global market of oil, which has become quite competitive, so you can rely on the supply and demand graph . A group of oil producing countries (OPEC) would like to impose a price floor, to prevent the price from reaching a low equilibrium level. Show graphically the effect of a successful price floor on oil buyers, sellers, and society at large.
In recent years, the number of new oil producers has risen considerably (one reason among many is the discovery of shale oil). How is this going to affect the market under the same price ceiling? Will OPEC find it easier to maintain the ceiling? Explain.
In: Economics
In terms of supply and demand in economics how does the Public Option under the Affordable Care Act affect the markets of healthcare?
Does supply go down and demand go up if more people become insured? Will costs go down if the Public Option strives to lower costs?
In: Economics
a) Assume a tax of 2 $ per unit is imposed on buyers. Show the impact of the tax on buyers, sellers, and economic efficiency. Carefully label your graph. Other things being equal, will a tax on sellers produce a better outcome? Will it change the burden of the tax? Explain.
b) Accounting professors earn more than Literature professors at most universities. What might be the reasons (use the supply and demand model)?
In: Economics
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Question 21 (1 point)
If a firm in country B borrows from a bank in country A, and the loan is denominated in country B's currency, which party(ies) would stand to lose (in the loan transaction) from an unexpected devaluation of currency B (relative to currency A)? Assume the loan will be repaid at face value.
Question 21 options:
A-bank |
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B-firm |
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both in roughly equal measure |
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neither Question 22 (1 point) In the early 2000s, as a source of foreign savings for developing countries, official foreign savings was on average _____ private foreign savings. Question 22 options:
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In: Economics
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Present a labor market analysis (a diagram and accompanying “story”) that describes how technological improvement will tend to affect the nominal wage level, real wage level, and employment level, assuming the technological improvement increases labor productivity.
In: Economics
a. Suppose that business pessimism leads to a reduction in investment demand. What are the short-run (immediate) effects on output, the unemployment rate, the real interest rate, consumption and investment?
b. If the nominal interest rate is reduced to the zero lower bound by the reduction in investment demand, what happens over time to inflation, output, the unemployment rate, and the real interest rate?
c. In this circumstance, discuss the ability of monetary and fiscal policies to restore full employment, that is, to return output and the unemployment rate to their natural rates.
In: Economics
Suppose that individuals become more optimistic about their future incomes, and increase consumption at their current levels of disposable income. Use the Romer model to explain the short-run (immediate) and long-run effects of this law on inflation, output, the real interest rate, consumption, and investment.
In: Economics
Quantity Demanded 2018 |
Prices 2017 (base year) |
Prices 2018 (current year) |
10 kilograms (kg) coffee |
$6/kg |
$2/kg |
10kg tea |
$4/kg |
$4/kg |
Assume that a typical consumer’s food basket contains only coffee and tea. Moreover, assume that consumers are completely indifferent between coffee and tea. If the official “food inflation rate” for 2018 is calculated using a Paasche index, the substitution bias is demonstrated by the fact that the official (i.e. calculated) food inflation rate is
why is it more likely -25%?
In: Economics
This question definitely brings back information we studied at the start of class. Change is stressful for many people, especially at work. Communication plays a big factor here. What are some ways we can better help employees understand change and why change is needed? How can kindness and understanding play a big role here?
In: Economics