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Spending by the consumer sector is the driving force in the US economic system. Although the business and government sectors make a considerable contribution to the success of the economy, it is the spending by the consumer or household sector of the economy that determines prosperity or recession in the economy. Do you agree or disagree with this argument? Why or why not? Support you answer with examples and references of how the business and government sectors of the economy are crucial in supporting spending by the household sector. How has the spending behavior of the government sector changed over the past decade, and what effect have these changes had on the economy? Decision making in a business environment requires an understanding of cost and revenue data. This includes an understanding of marginal and incremental analysis, as well as basic cost and revenue relationships. Explain how a basic understanding of these concepts, as well as of managerial economics, can enhance the managerial decision-making process. Support your answer with examples and references.
The Case in Point on America’s shifting comparative advantage suggests that the United States may have a comparative advantage over other countries in the production of high-tech capital goods. What do you think might be the sources of this advantage..
Assess what the results of the regression equation tells managers and how it is likely to impact decisions made related to maximizing profitabilit
Based on discussions surrounding the controversy over the value of the Chinese yuan in foreign currency markets, is China still using central bank foreign exchange policy to maintain the value of the Yuan? What is the current policy of the United Sta..
Write a well-reasoned argument defending your stance. If deposit insurance were abolished, elucidate how would this change incentive structure facing deposit theory institutions.
Suppose the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 600 shares at $78 per share with an initial margin of 25 percent. One year later, the stock is selling for $84 per share, and you close out your positi..
Consider an economy that produces food and cloth. Food is produced using land and labor. Cloth is produced using capital and labor. Initially, the world price of food and the world price of cloth are both $1 per unit. Find the equilibrium allocation ..
When an excise tax is collected from sellers of a product with relatively inelastic demand, which of the following occurs?
suppose the government is considering the imposition of a unit tax to be levied on beer producers. the view of
q. a county is considering using a piece of park land for one of two alternative recreation projects. project s would
A proposal has been advanced to limit advertising of pharmaceutical prices to prevent unfair pricing by national chains. You estimate that limits on price advertising will change the price elasticity of demand from -5.63 to -4.43. From the pharmacis..
Suppose the government sets a controlled price below the market clearing price for a commodity. Draw a diagram and use the idea of a maximum buying price to explain whether the total price paid by the buyers will end up lower or higher than before.
The first cash flow of a 25-year series of quarterly cash flows is equal to $35,000. Each cash flow in the series increases by $800. Find the amount of each cash flow in an equal quarterly cash flow series that is equivalent to the increasing cash fl..
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