Questions
As ABAC International University continues to grow and grow, expanding into post graduate, and doctorate courses,...

As ABAC International University continues to grow and grow, expanding into post graduate, and doctorate courses, many have asked for higher education to be free. Describe the advantages and disadvantages to the economy, if education was free in Thailand.

In: Economics

What do you believe is the most significant change required in organizational structure as a company...

What do you believe is the most significant change required in organizational structure as a company makes the shift from a national to a global enterprise? Why? How does this change most significantly influence the marketing of the company's products or services? Explain.

In: Economics

The following diagram presents a circular-flow model of a simple economy. The outer set of arrows...

The following diagram presents a circular-flow model of a simple economy. The outer set of arrows (shown in green) shows the flow of dollars, and the inner set of arrows (shown in red) shows the corresponding flow of inputs and outputs.

  

Based on this model, households earn income when___________________ purchase_______________________ in factor markets.

Suppose Cho earns $525 per week working as work as a flight attendant for Flyaway Airlines. She uses $10 to order a mojito cocktail at Little Havana. Little Havana pays Bob $300 per week to wait tables. Bob uses $125 to purchase air travel to Hawaii from Flyaway Airlines.

Identify whether each of the following events in this scenario occurs in the factor market or the product market.

Event

Factor Market

Product Market

Bob earns $300 per week working for Little Havana.
Cho earns $525 per week working for Flyaway Airlines.
Bob spends $125 to purchase air travel to Hawaii from Flyaway Airlines.

Which of the elements of this scenario represent a flow from a household to a firm? This could be a flow of dollars, inputs, or outputs. Check all that apply.

The mojito Cho receives

The $125 Bob spends to purchase air travel to Hawaii from Flyaway Airlines

The $300 per week Bob earns working for Little Havana

Cho's labor

In: Economics

Give 3 different concepts and examples of macroeconomic policy.Interpret ıt.(200-300 words)

Give 3 different concepts and examples of macroeconomic policy.Interpret ıt.(200-300 words)

In: Economics

Notice the following model of a bond market. In each situation given, explain what happens to...

Notice the following model of a bond market. In each situation given, explain what happens to the bond price and yield and why. a) Expected inflation decreases b) The return on bonds falls relative to other assets c) The federal government deficit decreases

In: Economics

Example of Macroeconomic policy tradeoffs? Interpret it.(200-300 words)

Example of Macroeconomic policy tradeoffs? Interpret it.(200-300 words)

In: Economics

Is it impossible to talk about the best macroeconomic policy? İf not why? (200-300 words)

Is it impossible to talk about the best macroeconomic policy? İf not why? (200-300 words)

In: Economics

Some observers argue that the mandate of the Federal Reserve should be changed to prioritize the...

Some observers argue that the mandate of the Federal Reserve should be changed to prioritize the control of inflation over other goals. Research and discuss the arguments for and against inflation targeting like this. Look into the policies of a different central bank when it comes to balancing inflation control versus other goals and share with the group what you found out.

In: Economics

Discuss each of arguments presented below for small local governments units: For small LG units: 1....

Discuss each of arguments presented below for small local governments units:

For small LG units:

1. Easier communication between citizens and governors

2. More „quasi-market” competition- by „exit”

3. Less people in administration

4. Economies of scale could be achived by PPP

5. More innovative governors and administration

In: Economics

In the country of imagination, we have the following data for the GDP calculation (2015 is...

In the country of imagination, we have the following data for the GDP calculation (2015 is the base year):

year

Price of pizza

Quantity of pizza

Price of cheese

Quantity of cheese

2015

$10

250

$6

200

2016

$12

250

$9

250

  1. Please compute the nominal GDP, real GDP and GDP deflator for 2016.
  2. what is the percentage change in nominal GDP between 2015 and 2016?
  3. What is the percentage change of the overall price (GDP deflator) between 2015 and 2016?

In: Economics

Assume a Ricardian model with two countries, Home and Foreign, that both produce coffee and tea....

Assume a Ricardian model with two countries, Home and Foreign, that both produce coffee and tea. Home has 600 units of labor (L) available. Home’s unit labor requirement in the production of coffee is aLC = 4, while in the production of tea it is aLT = 3. Foreign has 800 units of labor (L*) available. Foreign’s unit labor requirement in the production of coffee is a*LC = 2, while in the production of tea it is a*LT = 1.

a) Assume there is no trade. Moreover, markets are competitive and wages equal marginal productivities.

a1) Determine Home’s production possibility frontier (PPF), i.e., denote QC as a function of QT where QC denotes the output of coffee and QT denotes the output of tea.

a2) Determine the wages that are paid in both sectors in Home. Provide a brief explanation.

a3) What are the equilibrium relative prices of coffee in terms of tea in both countries? Provide a brief explanation.

b) Assume now that there is free trade.

b1) Assume the world relative price of coffee in terms of tea is PTC / PTT= 1.5. Determine the production output of coffee and tea for both countries. Explain how you get to your results.

b2) Assume the world relative price of coffee in terms of tea increases to PTC / PTT = 2. How does your answer to part b1) change? Briefly explain.

In: Economics

With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

With examples, discuss the effect of protectionism trade policies on the socio-economic development of developing countries.

In: Economics

Define and explain the tactical-strategic capacity decisions, capacity utilization and economies of scale. Establish a relationship...

Define and explain the tactical-strategic capacity decisions, capacity utilization and economies of scale. Establish a relationship between those. Use examples.

In: Economics

2. Airbus sold an aircraft, A400, to Delta Airlines, a U.S. company, and billed $30 million...


2. Airbus sold an aircraft, A400, to Delta Airlines, a U.S. company, and billed $30 million payable in six months. Airbus is concerned with the euro proceeds from international sales and would like to control exchange risk. The current spot exchange rate is $1.05/€ and six-month forward exchange rate is $1.10/€ at the moment. Airbus can buy a six-month put option on U.S. dollars with a strike price of €0.95/$ for a premium of €0.02 per U.S. dollar. Currently, six-month interest rate is 2.5% in the euro zone and 3.0% in the U.S.
a) Compute the guaranteed euro proceeds from the American sale if Airbus decides to hedge using a forward contract.
b) If Airbus decides to hedge using money market instruments, what action does Airbus need to take? What would be the guaranteed euro proceeds from the American sale in this case?
c) If Airbus decides to hedge using put options on U.S. dollars, what would be the ‘expected’ euro proceeds from the American sale? Assume that Airbus regards the current forward exchange rate as an unbiased predictor of the future spot exchange rate.
d) At what future spot exchange rate do you think Airbus will be indifferent between the option and money market hedge?

In: Economics

You are given the following information for a closed economy in a general equilibirum context. Cd...

You are given the following information for a closed economy in a general equilibirum context.

Cd = 5000 + 0.8Y - 80,000r , Id = 1000 - 45,000r.

Md/P = 0.9Y - 4000i ,  π e = 0.05, G = 450, Y-bar= 1000, and M = 3000.

a) Calculate the general equilibrium values of the real interest rate and the price level.

b) Explain what general equilibrium means in the IS-LM framework and how it is attained.

c) What kind of a shock has the Covid-19 pandemic crisis led to in the economies?

In: Economics