If the Fed wanted to slow down the economy, what would happen to the Federal Funds rate and to open market operations (buy or sell securities)?

Facebook is currently the leading social network; everyday thousands of people use this network to socialize. However, this practice is not secure from criminal minded predators, and a person’s privacy can be easily invaded. Discuss three other social problems associated with the use of Facebook, and recommend a solution for each problem.

Discuss the possible solutions to “heal” the economy once the great recession was in full force.

7. When the price of Coke rises, we see that consumers shift to purchase more Pepsi which is still cheaper. This statement describes:

    A)    An inferior good.    

    B)    The rationing function of prices.

    C)    The substitution effect.

     D)    The income effect.

The factor proportions, or Heckscher-Ohlin, theorem remains the most important single theory of why relative prices differ before trade, providing insights into the relationship between commodity trade and factor endowments.

1. Provide a common-sense conclusion that can be drawn from this theorem.

2. Discuss two implications of the factor proportions theorem.

3. The table below shows units of commodity X and Y that the U.S. and Mexico can produce with one- hour of labor time. Output Per Hour of Labor Commodity U.S. Mexico X (in units) 5 20 Y (in units) 30 5

a. Identify the commodity in which the U.S. and Mexico have a comparative advantage.

b. Suppose that the U.S. exchanges 15Y for 45X with Mexico. What is the TOT for commodity Y? How much would the U.S. and Mexico gain?

Compare and contrast the US GDP with another country's GDP ranking. What are the similarities/differences? What are the strengths/weaknesses of each country - look to analyze the composites that comprise GDP (consumption, investment, government spending, net exports).

A construction company is choosing between two backhoes. Options A is a wheel-mounted version, with an initial cost of $65,000, an expected life of 6 years, and a salvage value of $5,000. Option B is a trackmounted version, with an initial cost of $85,000, a 9-year life, and a salvage value of $10,000. Both machines will achieve the same productivity. The interest rate is 9%.

a) What is the EUAC of option A ($/year)?

b) What is the EUAC of option B ($/year)?

c) If the interest rate is 12%, which option is preferred (A or B)?

How are countries compared in terms of their economic development? Discuss.

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?