branding ghana as a tourism destination. the major considerations

Recently, the owner of a Trader Joe’s franchise decided to change how she compensated her top manager. Last year, she paid him a fixed salary of $60,000 and her store made $135,000 in profits (not counting payment to her top manager). She suspected the store could do much better and feared the fixed salary was causing her top manager to shirk on the job. Therefore, this year she decided to offer him a fixed salary of $30,000 plus 18% of the store’s profits. Since the change, the store is performing much better, and she forecasts profits this year to be $275,000 (again, not counting the payment to her top manager).

Assuming the change in compensation is the reason for the increased profits, and that the forecast is accurate, how much more money will the owner make (net of payment to her top manager) because of this change?

$

Does the manager make more money under the new payment scheme?

(Click to select)  Yes  No

Question 5 [10]A large share of the growing expenditure in South Africa goes towards the remuneration of employees (the so-called wage bill). Explain how unbalanced productivity growth (According to Baumol’s unbalanced productivity growth model) affects government expenditure, and briefly comment on its relevance to South Africa.

Subject: Government economics 20A

do you think that the US government has done enough to try and stimulate aggregate demand?

Do you think that developing nations would should focus on improving their education system before large scale economic projects?

In an enquiry in to the wealth of nation by Adam Smith. How did Adam Smith reconcile the pursuit of individual self-interest in free markets with the attainment of socially beneficial outcomes? explain using between 900-1000 words

the benefits of lowering interest rates would be to raise the investment in residential houses. Do you think there could be a risk to this of inflating housing prices like we saw happen in the first half of the 2000s.

1. Compute the price elasticity of demand if price increases from $10 to $12 and quantity demanded falls from 600 to 400. Use the value obtained and a specific example to determine whether price must be increased or decreased to increase total revenue. Explain why. Note: Explain only how to increase total revenue, not decrease it.

​​The Credit River has two polluting firms on its banks. Plants A and B each dump 100 tonnes of effluent into the river each year. The cost per tonne of reducing emissions is $20 for plant A and $100 for Plant B. The government wants to reduce overall pollution from 200 tonnes to 50 tonnes.
a. If the government knew the cost of reduction for each firm, what reductions would it impose in order to achieve its overall goal at the least possible total cost? What would be the cost to each firm, and the total cost?
b. If, in the absence of information about each firm’s costs, the government decided to reach its overall goal by imposing uniform reductions on the firms, what would be the cost to each firm, and the total cost?
c. Compare the total costs in parts a and b. If the government does not know the cost of pollution reduction for each firm, is there still some way to reduce pollution to 50 tonnes at the total cost calculated in part a?

Identify and discuss the store's target market and the specific product, price, integrated marketing communications and distribution decisions the management has made to develop marketing mix.

A country which does not tax cigarettes is considering the introduction of a $0.40 per pack tax. The
economic advisors to the country estimate the supply and demand curves for cigarettes as:
QD = 140,000 - 25,000P QS = 20,000 + 75,000P,
where Q = daily sales in packs of cigarettes, and P = price per pack. The country has hired you to provide
the following information regarding the cigarette market and the proposed tax.
a. What are the equilibrium values in the current environment with no tax?
b. What price and quantity would prevail after the imposition of the tax? How much do buyers now pay?
How much do produces receive?
c. How much revenue is raised by the tax?
d. Calculate the deadweight loss from the tax.
e. Based on your answer in (b), is supply or demand more elastic? Explain.

1. Why is a minimum wage such a popular government policy in most countries? Use your understanding of supply/demand analysis to explain the advantages of the minimum wage and the disadvantages of the minimum wage. Provide a graph to illustrate your answer. Be sure to use your graph and the laws of supply and demand to answer the question, not public opinion.

Conducting Monetary Policy

1. (.5 marks) Should the Central Bank increase or decrease the discount rate to get the economy to full-employment output? For full credit, please describe the timeline of events / channel (what happens to relevant curves in money market and AD-AS model in a sequential manner).

1. (1.5 marks) The Central Bank decides to increase reserve requirement to 40% in order to close the output gap / get the economy to full-employment output. On the AD-AS graph, please draw which curve shifts and in which direction. Also, please draw what happens (shift/movement of any curve) in the money model graph too.

1. (.5 marks) To conduct Open Market Operations to follow an expansionary monetary policy, should the Central Bank buy or sell Treasury bonds? Justify / describe the channel of how the procedure works (Open Market Operations).