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It is customary for the News media to report about consumer confidence and investor confidence while discussing the national economy. How do you think the confidence of the economic agents affect the economy? From personal or work experience, state factors that could cause increase in consumer spending and investor investment. Do consumer and investor confidence trend reports affect your spending pattern? Explain.
The government purchases component of GDP does not include spending on transfer payments such as Social Security. GDP does not also include the value of used goods that are resold. Do you think such exclusion make GDP a less informative measure of economic well-being? What other production of goods and services do you think are excluded from the GDP? What is the impact of such exclusion on the economic welfare?
Illustrate what extent should managers base their plans on the assumption that customers and suppliers are self-interested.
Ford executives announced that the company would extend its most dramatic consumer incentive program in the company's long history-- the Ford Drive America Program. The program provides consumers with either cash back or zero percent financing for..
Industry studies often suggest that firms may have long - run average cost curves that show some output range over which there are economics of scale and wide range of output over which long- run average cost is constant.
Why is investment spending unstable? How is it possible for investment spending to increase even in a period in which the real interest rate rises?
Over the past few years there has been ongoing debate in Australia about public funding for (primary and secondary) school students.
suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete . the firm has fixed costs of $10 million per year and a variable cost of $1 per bag no matter how many bags are produced.
assume the consumption function is given by c2000.5y-t and the investment function is i1000-200r where r is in percent.
Which product is the most profitable? Why doesn't Mexicana just produce that product and forget about the others? What are some of the inputs that Mexicana uses to produce its products?
income from the mining of mineral deposits usually decreases as the resource becomes more difficult to extract.
In 1970 Milton Friedman argued that the only social responsibility of business was to increase profits. Compare and contrast the evidence Freidman presents to back up his claim with that provided in the Homer-Dixon article.
Long-run real interest rates are expected to increase. An accountant and an MBA student (who just finished his course of Managerial economics) were interviewed regarding the effect on the firm they both work at.
A purely competitive firm finds that the market price for its product is $20. It has a fixed cost of $100 and a variable cost of $10 per unit for the first 50 units and then $25 per unit for all successive units. For each of the first 50 units, do..
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