Discuss why the policy rate of TCMB (turkish central bank), which is the one-week repo rate, may be misleading to measure the true cost of funding that TCMB charges to our commercial banks.

Question 1:

Suppose that your group is the executive sales team for Starbucks. The CEO has just proposed lowering the price of regular coffee and increasing the price of specialty coffee drinks. The belief is that our customers are sensitive to a price change of regular coffee but much less sensitive to a change in the price of specialty coffee. As such, your team is tasked with providing an analysis on this proposal. In order to provide your analysis, you need to find out if the CEO’s theory about customer behavior, and their sensitivity to price changes for regular and specialty coffee, is correct. In order to find out how sensitive customers are to a price change, you will need to calculate the price elasticity of demand, describe what that means, and evaluate the impact on revenues.

For this activity, use the standard percent change formula (also known as the point method).

You have been given the following data on prices and changes in quantity demanded.

Regular Coffee:

Current Price per cup: $2.00 and quantity sold per month is 1 million

Proposed Price per cup: $1.80 and estimated quantity sold per month is 1.5 million

Specialty Coffee:

Current Price per cup: $4.00 and quantity sold per month is 50 million

Proposed Price per cup: $4.40 and estimated quantity sold per month is 47 million

Part 1: Find the elasticity of demand for regular and specialty coffee.

Part 2: Find the total change in revenue for regular and specialty coffee.

Part 3: Use a demand curve graph to explain the change in revenue. You only need to show the demand curve on your graph.

You may upload a picture/file of your graph or use the creately template.

Question 2:

Suppose that your group is the executive sales team for McDonalds. The CEO has given your team a proposal; To analyze the impact of raising the price of the Big Mac by 10% and raising the price of regular fries by 10%.

In order to provide your analysis, you need to find out how sensitive customers will be to a price change of Big Macs and fries. In order to find out how sensitive customers are to a price change, you will need to calculate the price elasticity of demand, describe what that means, and evaluate the impact on revenues.

For this activity, use the standard percent change formula (also known as the point method).

You have been given the following data on prices and changes in quantity demanded.

  Big Mac:

Current Big Mac Price: $2

Current Big Mac monthly sales: 1 million

Estimated monthly Big Mac sales at the new price: 980,000

Regular Fries:

Current regular fry Price: $1.50

Current regular fry monthly sales: 2 million

Estimated regular fry monthly sales at the new price: 1.4 million

Part 1: Find the elasticity of demand for the Big Mac and fries.

Part 2: Find the total change in revenue for the Big Mac and fries.

Part 3: Use a demand curve graph to explain the change in revenue. You only need to show the demand curve on your graph.

You may upload a picture/file of your graph or use the creately template.

there is a fear that adjusting minimum wages upwards will lead to a general decline in the level of training firms offer their employees. is there any legitimate cause of worry?

Question 2 [50 Marks] – macroeconomic economic indicators Most developing countries such as South Africa, Zambia, Tanzania, Mozambique, Nigeria etc., are battling to contain inflation at desirable levels. On the other hand, some developed economies are battling with deflation. Using relevant macroeconomic theories to support your arguments: a. Write a detailed review of the challenges posed by deflation within an economy. Your answer should cover all sectors including the business, government and the society as well as other macroeconomic indicators (GDP, unemployment, interest rate, etc.,). [25 Marks] b. As an economist, write a policy brief to the parliament of a country that is attempting to find the correct policy mix to take the country out of a deflationary period. Your policy brief should demonstrate a clear understanding of relevant macroeconomic PBA4801 Economics for Managers Jan 2020 S1 Page 30 of 32 © UNISA Graduate School of Business Leadership models/theories and must cover both fiscal and monetary policies focusing on all actors of the economy (business, public sector, government, society etc.,). [25 Marks]

How does IMF Achieve It's Goal?

Why is the IMF considered as being controversial ?

Do you agree that the IMF hurts developing countries?

Why do you think that the government of developing countries actually hurt their people instead of the IMF?

1. A company is considering an investment of $4 million in a project that has a seven-year life. The company has estimated its discount rate at 12%. Details of the sales and costs associated with the project are as follows:

Note: The annual overhead includes $200,000 per year depreciation on the asset. It also includes apportioned fixed overhead of a further $50,000 per year.

1. Calculate the net present value of the project. Provide a commentary on the discounting process and on the net present value that you calculated.
2. Carry out a sensitivity analysis on the five variables of this project. Include the life of the project and the discount rate. Identify what you consider the most critical variable and advise management what they should do, if anything, before adopting the new project.
3. Advise the company on whether it should proceed with the project and provide reasons for your advice.

One of the great new “marketplaces” of our time is eBay. Spend some time on the eBay website (www.ebay.com). Find a product that you are interested in and follow the bidding. How much would you be willing to pay? Consider the following questions. (Objective 2)

How is eBay providing value to its customers?

Describe the relationship they have with their customers.

What are their markets?

What effects would each of the following have on aggregate demand or     aggregate supply? Justify your answer. In each case use a diagram to show the expected effects on the equilibrium price level and real output level in the economy. Assume that all other things remain constant and prices are inflexible downward.

(a) A reduction in interest rates at each price level.

(b) A sizable increase in labor productivity.

(c) The nation’s currency appreciates against its major trading partners .

#8 The cost of hiring workers includes not only payments made directly to workers, that is, wages, but payments made on behalf of workers as well, such as contributions by employers to pension plans and to health-care insurance for employees. How would a decrease in the cost of employer-provided health insurance affect the economy?  

CH8 

#1.Suppose the people in a certain economy decide to stop saving and instead use all their income for consumption. They do nothing to add to their stock of human or physical capital. Discuss the prospects for growth of such an economy. 

#4. China’s annual rate of population growth was 1.2% from 1975 to 2003 and is expected to be 0.6% from 2003 through 2015. How do you think this will affect the rate of increase in real GDP? How will this affect the rate of increase in per capita real GDP? 

#10. Suppose that for some country it was found that its economic growth was based almost entirely on increases in quantities of factors of production. Why might such growth be difficult to sustain? 

1. Consider the long-run production of shirts. The cost of the indivisible inputs used in the production of shirts is $500 per day. To produce one shirt per day, the firm must also spend a total of $4 on other inputs-labor, materials, and other capital. For each additional shirt, the firm incurs the same additional cost of $4.

1. Compute the average cost for 20 shirts, 50 shirts, 100 shirts, and 500 shirts.
2. Draw the long-run average cost curve for 20 to 500 shirts per day. (2marks)

c) What is the minimum set of conditions necessary for the OLS estimator to be the most efficient unbiased estimator (BLUE) of a parameter? List each of these minimum conditions and explain what they mean in one or two sentences.

b) Choose any two of the conditions and for each one (i) explain what could go wrong in estimating a model should the condition not hold, and (ii) give one real world example (each) of a research design where the condition might not be satisfied.

Two steel factories are currently emitting 8,000 tons of pollution each (for a total of 16,000 tons). Pollution reduction (abatement) costs for Plant 1 are given by MCR₁= 0.02Q and for Plant 2 by MCR₂ = 0.03Q, where Q represents tons of abatement, and MCR the marginal cost of pollution reduction.

1. Suppose a regulation is implemented that requires each firm to reduce its pollution by 4,000 tons. What will be each firm’s pollution control costs? Draw two graphs on Excel(one for each firm) to support your answer.
   
2. Suppose instead that a pollution tax of $240 per ton of pollution emitted is implemented. How much will each firm now pay in pollution reduction costs (not considering taxes)? How do total pollution reduction costs with the tax compare to the total costs from part (a)? Briefly explain why the costs differ. How much does each firm pay in taxes? Use two graphs on Excel (one for each firm) to support your answer.For Problem 2, please upload your completed MS Excel spreadsheet in HuskyCT to support your answers.

In the recent past, Japan and Argentina have had completely different experiences in terms of inflation dynamics. Japan experienced neither sustained inflation nor disinflation, whereas Argentina had very high inflation rates. How would a cut in the target inflation rate affect expectations in the two countries? What does this imply in terms of short-run and long-run Phillips curves?

• Given the different perspectives of diverse groups regarding international trade, on what should national trade policy be based? (Efficiency? Most beneficial impact on production (GDP) and economic growth? The largest number of people who benefit? The smallest number of people who are harmed? Other considerations?)

. Using Philips curve illustrate relationship between inflation and unemployment in the short run and long run.