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In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies.
(a) Discuss the difference between economic costs and accounting costs. Which are important for the calculation of economic profits of the firm?
(b) Discuss the differences between the long run and the short run. What are the implications for the firm of making decisions in the short run and making decisions in the long run? Discuss the limitations and freedom of the two time horizons.
Explain your answers and support your answer with theory and examples.
Discuss why are manufacturers’ new orders, nondefense capital goods, an appropriate leading indicator and explain w hy is the index of industrial production an appropriate coincident indicator?
Suppose that a country's real growth is 2% a year, while its real deficit is rising 5% per year. Can the country continue to afford such deficit indefinitely?
The Cairo plan called for sizeable monetary pledges from developed countries to support enhanced population planning in the developing world. For the most part, those pledges have not been honored. Do you think the financial obligations assigned to..
Suppose the Fed has already make a decision that it wishes to target the money stock. Will the Fed come closer to its target by setting the interest rate at a given level, or will it do better by fixing the money supply through open market operations..
ohn Dolan, CFA, is an international fund manager with Borderless Fund. Dolan is planning an investment in nation of Kenya. He is concerned with inflationary environment in Kenya,
Similarly, the autarky price of poultry in Mexico was above the world price and in the United States was below the world price. Draw diagrams with domestic supply and demand curves for each country and each of the two goods. as a result of NAFTA, ..
Suppose that a nation faces a balance of payments deficit with high unemployment. Determine what exchange-rate adjustment can be made to solve these problems?
Explain why is the population shape a concern when estimating a mean and what effect does sample size, n, have on the estimation of mean?
The problem of estimating what goods and services society should produce, Determine the models used in economics
Describe unequivocally why the foundation of trade has nothing to do with absolute advantage and only law of comparative advantage is relevant.
If American consumers decrease their spending on imports but leave their overall consumption spending constant, "hence buying more locally made goods", with all other factors constant what would happen to America's current Account and why
Determine the government's role be with respect to regulating accounting companies in the wake of mismanagement and accounting irregularities?
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