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Discussion Post I:
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.
1. Do you agree or disagree with this argument?
2. Why or why not?
3. How has the spending behavior of the government sector changed over the past decade, and what effect had these changes had on the economy?
4. Justify your answers
Discussion Post II:
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. Justify your answer.
What is the competitive criterion in the market place? What is its function in resource allocation? What are the "rules of the game" associated with market
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While visitng family in Mexico, your professor has a budget of $287 ($ = pesos) that he spends on tacos and tequila. The price of tacos if $6 and a shot.
Compute the change in the levels of consumption and investment from one year to the next, and graph them for the period 1959 to the latest available date. Are the year-to- year changes in consumption and investment of similar magnitude?
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