Please use the economics knowledge you have learned so far to analyze the case below. You can propose your own questions and then answer them. Remember, there is no absolutely correct answer to this exercise. Its purpose is to provide you an opportunity to demonstrate your ability to think like an economist by applying economic principles to interpret the logic of a real-world phenomenon.
Will Economic Reforms in Mexico Boost Economic Growth?
More than 18,000 U.S. companies, including Fortune 500 firms, have operations in Mexico. Proximity is to the United States is an advantage of doing business in Mexico but investing in Mexico is risky because of the presence of crime and corruption. The Mexican government has failed to fully establish the rule of law, which is critical for the long-term prospects of the Mexican economy. Mexican entrepreneurs also suffer from problems in the banking industry that make it difficult to obtain the funding needed to finance expansion
In: Economics
* write a report that STYLIZED FACTS between U.S. MONETARY POLICY AND GCC COUNTRIES banks
In: Economics
The Economic Growth Model's Prediction of Catch-Up
The economic growth model makes predictions about an economy's initial level of real GDP per capita relative to other economies and how fast the economy will grow in the future.
a. Consider the statistics in the following table. Are these statistics consistent with the economic growth model? Briefly explain.
|
Country |
Real GDP per Capita, 1960 (2005 dollars) |
Annual Growth in Real GDP per Capita, 1960-2011 |
|
Taiwan |
$1,861 |
5.81% |
|
Panama |
2,120 |
3.50% |
|
Brazil |
2,483 |
2.73% |
|
Costa Rica |
4,920 |
1.42% |
|
Venezuela |
7,015 |
0.91% |
b. Now consider the statistics in the following table. Are these statistics consistent with the economic growth model? Briefly explain.
|
Country |
Real GDP per Capita, 1960 (2005 dollars) |
Annual Growth in Real GDP per Capita, 1960-2011 |
|
Japan |
$5,586 |
3.39% |
|
Belgium |
10,132 |
2.50% |
|
United Kingdom |
11,204 |
2.10% |
|
Australia |
15,255 |
1.85% |
c. Construct a new table that lists all nine countries, from the lowest real GDP per capita in 1960 to the highest, along with their growth rates. Are the statistics in your new table consistent with the economic growth model?
In: Economics
In order to start this coffee business, the Manager took a 300K loan from the bank. He/she will have to pay 10K monthly for three years.
a-Calculate the effective interest rate (per year).
b-If the coffee business makes a Revenue=19K/month and has an operational cost of 12K/Month, Calculate the PW if the study period is 5 years and the MARR is equal to 1.5% per month. Solve by Hand Please
In: Economics
write a report why spillovers from U.S. monetary policy to non-oil GDP growth in the GCC countries depends on the level of oil prices.
clarify
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In order to improve the financial Situation of Thoughts, the Manager looked into expansion plans and decided to offer caterings for events. For the catering business, the manager is offering his customers a selling price p that depends on demand, where p= 9 - 0.02*D.
a- Calculate the Quantity that Maximises Revenue.
b- Calculate the Quantity that Maximises Profit (Refer to problem 1 for costs).
Problem 1 Costs:
Rental $80 per day
Coffee beans $5 per Coffee Cup
Sugar $0.3 per Coffee Cup
Flavors $ 0.5 per Coffee Cup
Filtered water $0.2 per Coffee Cup
Labor $30 per day
c- Calculate the Breakeven point(s).
No Ready-to use Formula should be used in this Problem, show your iterations. Ready-to-use formulas and Calculator-derived results will NOT be accepted
In: Economics
WHAT ARE THE BEST 10 PENNY STOCKS TO BUY RIGHT NOW? and why
In: Economics
Is it good for an economy to experience sudden inflation or deflation? Explain with relevant examples.
In: Economics
Compare the neoclassical model, the new endogenous growth model and the strategic trade theory. Any differences between these theories? What are the differences? Explain in detail.
In: Economics
DOMESTIC workers will no longer be subjected to meagre salaries
as the government has
adjusted the minimum wage for domestic workers, with effect from
December last year.
The announcement was made by the Department of Labour Minister
Mildred Oliphant and it
coincided with the signing into law of the National Minimum Wage
Bill by President Cyril
Ramaphosa.
According to the Department of Labour’s new rates, domestic workers
working in Area A (bigger
metropolitan areas) who work more than 27 ordinary hours per week,
must be paid a minimum
of R13,69 per hour.
Workers who work fewer than 27 hours per week, must be paid a
minimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours per week
will now earn a minimum of
R2 669,24 a month.
Gardeners, drivers or people who look after children, the aged,
sick, frail or disabled in a private
household, all qualify as domestic workers.
Source:
https://www.news24.com/SouthAfrica/Local/Stanger-Weekly/sa-domestic-workers-toget-
higher-minimum-wage-20190109-2 Accessed 24/09/2019
With the aid of a diagram, discuss the welfare effect of this new
legislation if the new minimum
wage is (1) below the equilibrium wage and (2) above the
equilibrium wage rate with labour
hours as your quantity variable.
In: Economics
Compare and contrast the neoclassical model and the strategic trade theory in detail.
In: Economics
Contrast the neoclassical economic theory with the new economic theories (new endogenous growth theory, new economic geography, and strategic trade theory)? Do the new economic theories reject the neoclassical economic theory? Substantiate your arguments with real world case(s) and example(s). ( Explain it in detail)
In: Economics
Executive Summary of Impacts of Engineering Decisions on Financial Statements
In: Economics
Two firms, A and B, compete as duopolists in an industry. The firms produce a homogeneous good. Each firm has a cost function given by: C(q) = 30q + 1.5q2 The (inverse) market demand for the product can be written as: P = 300 − 3Q , where Q = q1 + q2, total output.
Question: If each firm acts to maximize its profits, taking its rival’s output as given (i.e., the firms behave as Cournot oligopolists), what will be the equilibrium quantities selected by each firm? What is total output, and what is the market price? What are the profits for each firm?
In: Economics
In: Economics