In: Economics
In: Economics
explain GDP properly
introduction
why you like this topic in economics
In: Economics
4. Ms. Klein borrowed $10,000 from a bank on annuity
for 2 years at 20% annual interest compounded and payable
semiannually (every six months). Calculate the semiannual payments
and provide a table that shows semiannual payment, balance,
interest payment, payment to principal for each payment. Also
calculate the total amount which Ms. Klein will pay to the bank for
the borrowed amount including interest and principal payments in
the entire period of two years.
In: Economics
Please describe the meaning and provide your comments on the given price elasticity.
In: Economics
Subject: Engineering Economics
A company is considering the purchase of a material handling (MACRS-7 year property class) automated system for its distribution center. The new system costs $350,000 has an estimated life of 8 years and an estimated salvage value at that time of 20% of initial cost. Annual maintenance are estimated 25% of its first cost regardless of its level of usage. The operating costs of the system depends on the use, at a rate of $3/piece. The current system is manually operated and it is estimated that the automated system will generate savings of $8/piece. The distribution center operates 5 days a week, 50 weeks per year. The daily demand is stochastic and the company wished to know what should be the minimum daily demand to break even. The company uses a MARR of 15%, has a tax rate of 25%. Perform an ATCF break even analysis to determine the minimum daily demand to make the investment feasible.
In: Economics
Describe how the following transactions would affect U.S. exports, imports, and net exports:
In: Economics
How can opportunity cost affect a college student? Give examples.
In: Economics
How does migration contribute to development? You are to analyse either and/or Immigration and Emigration.
In: Economics
In 2000 words comapre and contrast the views of two economic schools of thought the neo classics and marxians and discuss how relevant their ideas and theories are in todays world
In: Economics
Suppose Juanita is choosing how to allocate her portfolio between two asset classes: risk-free government bonds and a risky group of diversified stocks. The following table shows the risk and return associated with different combinations of stocks and bonds.
Combination |
Fraction of Portfolio in Diversified Stocks |
Average Annual Return |
Standard Deviation of Portfolio Return (Risk) |
---|---|---|---|
(Percent) |
(Percent) |
(Percent) |
|
A | 0 | 1.00 | 0 |
B | 25 | 2.00 | 5 |
C | 50 | 3.00 | 10 |
D | 75 | 4.00 | 15 |
E | 100 | 5.00 | 20 |
If Juanita reduces her portfolio's exposure to risk by opting for a smaller share of stocks, he must also accept a (higher/lower) average annual return.
Suppose Juanita currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bonds; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 2% to 4%. In order to do so, she must do which of the following? Check all that apply.
-Accept more risk
-Sell some of her stocks and use the proceeds to purchase bonds
-Sell some of her stocks and place the proceeds in a savings account
-Sell some of her bonds and use the proceeds to purchase stocks
The table uses the standard deviation of the portfolio's return as a measure of risk. A normal random variable, such as a portfolio's return, stays within two standard deviations of its average approximately 95% of the time.
Suppose Juanita modifies her portfolio to contain 50% diversified stocks and 50% risk-free government bonds; that is, she chooses combination C. The average annual return for this type of portfolio is 3%, but given the standard deviation of 10%, the returns will typically (about 95% of the time) vary from a gain of _____ to a loss of _____ .
In: Economics
1. Explain and show how the full Keynesian sticky wage model is built. What are the main relationships? Explain briefly what each curve depicts.
2. Imagine that the economy starts off in a situation where the labor market clears. The economy is hit by a shock that reduces consumption demand temporarily. (See e.g. Figure 3.) Show the effects of the shock using graphs. Explain every shift of a curve. What are the effects on the interest rate, consumption, investment, output, the price level, the real wage and employment?
3. Do these effects fit the business cycle facts?
4. What would happen if the nominal wage adjusted in response to the shock? (Assume for this that wage adjustment is faster than the return of consumption demand to its initial level, i.e. maintain consumption demand at its low level induced by the shock here).
5. Using graphs, illustrate how fiscal policy could be used to counteract the effect of the shock. (Assume that the nominal wage remains at its initial level.)
6. Show, using graphs, the effects of the same shock in an economy where the nominal wage is flexible. How do the interest rate, output, the price level, the real wage and employment change?
7. How do these changes compare to those in a) the short run and b) the long run of the Keynesian model?
In: Economics
(7)The average price of regular unleaded gasoline in Arlington County should be about $1.10. This statement is an example of:
(a)A normative statement
(b)A positive statement
(c)A statement of the fallacy of composition
(d)A deductive statement
(8)If there is an inverse relationship between inflation and unemployment in the economy of a city, it would be correct to conclude that:
(a)There is a positive relationship between inflation and unemployment in the city’s economy
(b)There is a horizontal relationship between inflation and unemployment in the city’s economy
(c)A decrease in inflation leads to an increase in unemployment and vice versa in the city’s economy
(d)A decrease in inflation leads to a decrease in unemployment and vice versa in the city’s economy
(9)The shortage of resources in markets is another way to describe the scarcity of resources in the world is:
(a)A true statement
(b)A false statement
(c)(a) or (b) above
(d)None of the above
(10)The decision of cattle ranchers to supply 1,000,000 lbs. of steak to local markets on a monthly basis in order to satisfy their clients’ consumption needs is in keeping with which of the following questions:
(a)How to produce steak?
(b)Where to produce steak?
(c)When to produce steak?
(d)None of the above
Table#1-Supply of Coffee Beans
Quantity supplied Per Month (Millions of Bushels of Coffee beans) |
Price Per Coffee beans |
185 |
$10.99 |
180 |
10.99 |
175 |
10.99 |
164 |
10.99 |
155 |
10.99 |
142 |
10.99 |
(11)The data for the price and quantity supplied of coffee beans in Table#1 above demonstrate a (an) -------------------------------------------------relationship.
(a)Vertical
(b)Inverse
(c)Direct
(d)Horizontal
(12)The largest expenditure component of US GDP in any given year is:
(a)Net exports
(b)Consumption
(c)Gross investment
(d)None of the above
Table#2-Disposable Income, Consumption and Savings Data
Disposable Income or (Yd) |
Consumption or (C) |
Saving or (S) |
||
$ 0 |
$ 500 |
$ |
||
14,500 |
-1200 |
|||
18,650 |
850 |
|||
24,785 |
||||
32,596 |
36,768 |
|||
0 |
48,655 |
(13)Which of the following is consumption spending for the household in Table#2 above when saving is -$1200?
(a)$13,300
(b)$16,700
(c)More information needed
(d)None of the above
In: Economics
The real exchange rate of RMB keeps decrease from the last year.
Please state possible advantages towards a particular industry and possible disadvantages towards another industry in Hong Kong.
about 1000 to 2000 words
In: Economics
Consider the following statement: “Devoting a larger share of national output to investment will imply a higher consumption per worker and a higher living standard.” Do you agree with this claim? Explain, using the Solow model.
In: Economics