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Macro & Microeconomics Essay

Research assginment
Additionally, the poor people are also marginalized from the society and have little representation or voice in political and public debates, which makes it harder for them to escape from poverty. In contrast, the richer you are, the more likely you benefit from political and economic policies. The amount of money the world spends on financial and military bailouts and other areas which benefits the richer is compared to the amount that is spent to address the daily crisis of poverty and other
Pages: 7 (1750 words), Essay
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Managerial Economic and Quantitative Analysis
The optimal output and price will be determined through equating total revenue function to the total cost function, and solving for the values of price and quantity, which will be the optimal price and quantity (R. Thomas & Maurice, 2007).Airbus demand function is P = 500 – 0. From this demand function, the total revenue function derived by integrating the demand function is TR = 500Q – 0. Airbus has the following Average cost function; AVC = 104.8822Q – 0.001Q2 + 0. By integrating this
Pages: 4 (1000 words), Essay
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Macro1.2
Goods and services bought by the government for to benefit the society as well as government investments in the various sectors of the economy constitute government expenditure. Government expenditure is financed by taxes, returns on government investments, revenues from state owned enterprises, donations and borrowing from individuals, groups of people, financial institutions, Central Bank and from other countries (Gupta, Mandal & Gupta, 2008). Examples of government expenditures include:
Pages: 5 (1250 words), Essay
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Discuss and evaluate the most important reasons for a multinational enterprises decision to undertake foreign direct investment (FDI). 2500 words
This paper provides a critical evaluation and discussion of some of the major factors that can drive a multinational enterprise to decide to undertake foreign direct investment in efforts to expand its operations and go global. The paper highlights on the benefits of foreign direct investments to the multinational enterprises.Foreign Direct Investment has been associated greatly with the current trend that is observed towards globalization and internationalization of business operations. High
Pages: 10 (2500 words), Essay
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INTERNATIONAL ECONOMICS ...Evaluate the significance of imperfect competition models for explaining the pattern of international trade
Another assumption is that S is not affected by P. This refers to the situation where competition in price will simply redistribute the share of the market without increasing the total sales. To determine the market equilibrium, firms are assumed to be symmetric. The demand and cost functions are the same for all firms. An upward sloping relationship is said to exist between the number of firms and average cost of any firm. A downward sloping relationship is said to exist between the number of
Pages: 8 (2000 words), Essay
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Country Report: The Philippines' Problems, Projections, and Possible Policies
This proposal has won acclaim from only a few. "Money cannot manage itself," said Bagehot, a nineteenth-century economist”. The government has the power to reduce the inflation rate by increasing the supply of money into the economy. More money will reduce the inflation rate. Inflation is the increase in the prices of goods and commodities. Microeconomics also states that a decline in the demand for the products will reduce the demand and price of the product.Second, the ethnic issues include
Pages: 6 (1500 words), Essay
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ECO P3
Reserve has a greater influence on the exchange rate as foreign exchange interventions take place to control the economys demand and supply of money (Board of Governors of the Federal Reserve System, 2012). As a result, contractionary monetary policy implementation by the Federal Reserve creates shocks in the economy, as it allows the foreign exchange rate to appreciate for a shorter period and thereafter, the exchange rate depreciates with time to its original level.More than often, the
Pages: 5 (1250 words), Essay
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A Literature Review on Harold Hotellings work The Economics of Exhaustible Resources
More so, it is essential to consider that non-renewable resources provide a comparative advantage because countries could be the sole producers of valuable non-renewable resources. As a result, such country’s take advantage of their monopolistic position in the resource market, as it lacks competition in the production of the exhaustible resources thus, positioning itself strategically in the world market (Martinet 17). In addition, a country makes a decision on price that the exhaustible
Pages: 13 (3250 words), Essay
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What is the current macroeconomic situation in the US. Is the United States's economy currently concerned about unemployment, infalation, recession. What fiscal policies and monetary policies would be appropriate at this time
The administration has injected trillions of money into the economy to stop the recession. There has been debate over the effectiveness of this strategy as to whether it will create inflation. At this position in time, America is experiencing age of "severity" an era of recession worst from the time of the "immense depression." In essence, recession is nastiest than inflation during this point of economy. Inflation and greed is an excellent thing for the economy to generate jobs to progress the
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List at least three challenges China faces in further economic development
This move attracted many countries into purchasing Chinese products as they sold at cheaper prices internationally, thereby spoiling market for locally produced goods of foreign nations.As China increased its foreign exports due to the lower prices of goods, it reduced importation of goods and services from the trading partner countries. This made the exchange system unfavorable for the trading partners considering that local industries in the partner countries had to close down because
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IPE (International political economies)
It emerged in the political fields and drew varied sources such as economics, history and the international relation (IR); thus manifesting itself as a disciplinary that remains up to date (Cohen 24). However, after the Post War, the IPE emerged and since then, varied changes have taken place. The end of the Cold War contributed to the economic liberation and the emergence of IPE as a discipline that focuses on political, as well as economic issues across the globe. This was the period when
Pages: 6 (1500 words), Essay
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MACRO CASE 3- Macro-Economic Indicators: GDP, CPI, Unemployment, Interest Rates
The difference in rates among these bonds is caused by Maturity Risk Premiums.This is because of the relationship between the market value and interest rates due maturity. When bonds are issued, there is the market conditions and future expectation of investors which determines the interest rates offered. Therefore, holding bonds to maturity will yield more that the short term maturity. In the above case, assuming the proper maturity of the bond is thirty years, it will have 10.18% interest
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Economics for business
It also creates inequality because it converts the consumer surplus into producer surplus. This inequality between the price charged and the marginal cost makes this market inefficient. This means that there is price discrimination in such market and some consumers have to pay higher prices.In monopoly the output level is less and creates unemployment of the resources. The resources are not properly and efficiently utilized as compared to other market structures. In such market the price is
Pages: 8 (2000 words), Essay
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Huge inequality between Poor and Rich in China
It is stated by Xinhua, the state-owned news agency that the income disparity in China all together is well above 0.4, because of the huge income disparity amongst city and rural regions. In the year 2000, Chinese government issued a Gini index for the country which showed as 0. However many intellectuals at present believe that the index has gone up to between 0.45 and 0.50, stated Xinhua. The significance of Gini index is that ‘0’ indicate flawless equality and‘1’ indicate perfect
Pages: 7 (1750 words), Essay
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Brazil economic overview and solar power in brazil
Improved its macroeconomic stability, building up foreign reserves, and reducing its debt profile by shifting its debt burden toward real denominated and domestically held instruments. In 2008, Brazil became a net external creditor and two ratings agencies awarded investment grade status to its debt (Brazil Economy – overview, 2012).Along with India, China, Russia and South Africa; Brazil is one of the prominent members of BRICS countries. BRICS countries are the most rapidly developing
Pages: 6 (1500 words), Essay
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Economic crisis in France
The figure below will act as the evidence regarding the performance of the macroeconomic indicators for France.The economy of France is showing no progress for the fourth consecutive year. The early part of 2012 showed a sign towards returning towards the path of growth. The tensions in the financial markets were eased by the effective monetary policies of the European Union. Growth process may get hindered by the weak trade prospects and further austerity measures. The economy is expected to
Pages: 6 (1500 words), Essay
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Poverty can be alleviated by two alternative strategies: by providing microcredit to the poor or by undertaking industrialisation. Both strategies have their strengths and limitations. Discuss them by studying two countries of your choice
Microcredit is responsible for the introduction of group based microfinance. This is where the women come together to form groups which then received funds to invest (World Bank 2001). These group members impose both a support and pressure system on each other. This replaces traditional collateral that that laid emphasis on the property such as land and houses (World Bank 2001). This method ensures that there is availability of funds to a vast majority of the poor women in the rural
Pages: 12 (3000 words), Essay
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Economics Assignment 2
The last approach takes into consideration that the value of the products must be equal to the incomes of the factors of production. It determines the value of GDP by calculating the sum of the income of the producers.Inflation rate: Inflation is defined as the continuous or sustained rise in the general level of price. It can also be defined as continuous reduction in the value of money. The movement in the general price level is referred to as inflation. The rise in the price level must
Pages: 5 (1250 words), Essay
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While the Budget factored in a decline in Australias terms of trade
Holding down of the import prices by the recorded high Australian dollar also boosted the TOT. In the month of December 2011 to march 2012 a decline of 9.8% was reported in the TOT. From this time, a free fall has been there in the Australian TOT a situation that economists argue is beginning to get serious. The data available for the period of June quarter on the Australian dollar and the prices of commodities suggests that the TOT decreased by another 7% bringing the total TOT decline in
Pages: 6 (1500 words), Essay
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Industry-Economy Interlinkages
Econometric analysis shows that the construction industry can not only be used in building a country’s way out of recession but also activate various economic bases for a vertical economic growth (Dlamini 2011, p.3)Structures for control, containment and distribution such as sewage collection, distribution and treatment systems, water distribution and treatment systems, dams, canals, irrigation systems and sedimentation lagoons.This industry comprises of persons and organizations who take
Pages: 11 (2750 words), Essay
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