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Macro & Microeconomics Essay

Illicit smokes up 25% since tax rise ( Chapter 3: demand and supply, chapter 4: Elasticity, chapter 5: Economic efficiency )
The change in demand is usually represented by movement along the curve.Imposition of taxes on cigarettes would make cigarettes more expensive. This means that less people would demand it now as a general rule higher the price, lower is the demand. This can be represented in the following diagram:It can be clearly seen in the diagram, how tax reduces the quantity demanded and supplied in the market and how the price of a good increases after the imposition of a tax. This means that the
Pages: 9 (2250 words), Essay
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Interpreting Macroeconomic Conditions
This fiscal policy does affect the rate of economic growth since it adds to the aggregate demand. An increase in total federal spending, without a similar rise in tax receipts, means that for every dollar spent by the government, there is an income for the people that do satisfy the basic increment in the demand for the public commodities. Thus the people are willing to spend and in essence do rise the income for the second wave of demand increases thus reducing the income to even lower levels.
Pages: 4 (1000 words), Essay
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Intermediate Macroeconomics 1 Assessed Work
Taking an example where UIP does not exist i. a profit is actually realized - exchange rate between the Japanese yen and the U. dollar is usually stated in yen per dollar (¥/$); assuming that exchange rate increases from , say, ¥102 to ¥109 is an appreciation of the dollar. The UIP is covered against the risk of falling through hedging (Jeff, 2009, 243).The LM curve depicts output and the IS curve depicts exchange rate when nominal rate is flexible. This is because a flexible rate leads to
Pages: 4 (1000 words), Essay
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Identify the key characteristics of Transaction Cost Economics. Analyse the vertical boundaries of a company by describing the critical role played by coordination in a vertical chain.
The distinct traits of transactions have been argued to be the specifying of assets, uncertainty and the frequency of the transactions occurring. The trait known as asset specificity means the degree to which investments made on transactions are special to a particular transaction. In case a transaction flops, then the investments will be deemed as below value when utilized in another way. A circumstance of this nature can easily lead to the establishment of dependencies between the sellers
Pages: 6 (1500 words), Essay
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Is GDP a good measure of economic activity and well being? Give reasons for your answer. What particular problems arise when comparing GDP across countries?
Statistical indicators and GDP in particular are very important in the analysis and formation of policies aimed at speeding up the public progress. GDP is widely used indicator (international standards) measurement of economic activity and its calculation in which restrictions and conventions are admitted, needs refinement.GDP expresses very slight about the principal Quality of Life in the economy (Brooks, 2008, 311). There is no account for safety factors in GDP like forced labour, crime
Pages: 4 (1000 words), Essay
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Inside Job
The loans were securitized, and the banks no longer held the responsibility to collect the loan back. This subprime market offered high returns for the banks; therefore, the banks lent large sums of money without anticipating that they could default by providing such risky assets.On the other hand, securitization itself is not as harmful as shown in the documentary (Epstein). The securitization process allows the investors to diversify their portfolios by holding a large pool of credit card
Pages: 5 (1250 words), Essay
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IN THE BOOKLET
The result is that consumers are buying more of this product at the same price, so in this way the demand increases. If demand increases, consumers are also willing to pay a higher price i. P1 for the same quantity, increasing the market price for lamb.In the article, are provided reasons for the increase in demand for lamb such as marketing campaigns, but other reasons can be a drop in the interest for other types of meat, which will be discussed next when considering the elasticity of demand
Pages: 5 (1250 words), Essay
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IT, Big Data & Healthcare Market - How Will Advances in Big Data, IT, Cloud Computing and Analytics Impact Healthcare?
In this scenario, Medicare compensated health care expenses associated with patients’ treatment and the patient paid almost 45% of this cost. This situation continued until 1983. It was 1984, when Medicare decided to alter its payment system by implementing a flat rate payment system based on each patient’s diagnosis given by a Diagnosis Related Group. In the1990s, the health care became more challenging because of higher market competition which was an outcome of various changes in
Pages: 10 (2500 words), Essay
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INTERNATIONAL BUSINESS AND GLOBAL CHANGE
The development of the markets leads to plenty of changes in the marketing strategy of these companies (Ball & McCulloch, 2004). There is a cut throat competition for these companies and hence more and more pressure is built in the company in order to remain in the market. The below thesis would throw light on the ways in which the multinational giants captures the international market.To analyze this scenario, take two markets namely China and Russia. Let us understand if the strategy to
Pages: 16 (4000 words), Essay
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In each case below, identify the effect on the market for coal.
Due to rational self-interest, the producers will try to shift this burden to consumers of coal (Krugman & Wells, 2010, p. This is done by increasing the price by $2 for every tone sold. The effect of this tax can be shown in the graph below.Before implementation of the tax, the equilibrium supply curve was S. After the implementation of the tax, the new supply curve becomes St increasing the price from P to Pt. However, the producer receives Pt’. The amount of tax will be equal to Pt –
Pages: 4 (1000 words), Essay
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INTRODUCTION TO ECONOMICS
When the central bank reduces the interest rates, many clients will take more money than they could during high rates. This increases the money supply in the economy (Winters and Well 2002, p. Increasing the money supply will lead to reduced depression and stabilized the economy and employment level in the country. This will attract high rate of investment in the country (Grimwade 2002, p. Money will be in high supply; therefore, the market will stabilize and the economy will function normally
Pages: 4 (1000 words), Essay
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Information Goods and Information Markets
This means, as Bakos, and Brynjolfsson (2000, p. 117) comments, information goods will be sold for no cost if marginal cost is zero.The market involves numerous other issues as well despite the current copyright laws. Pirates have easy access to various information products illegally as there is no unanimous international regulation in this regard. As Coiera (2000) finds, if free access to information is the goal of a producer, the current feasibility is an advantage whereas if the producer
Pages: 4 (1000 words), Essay
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International Political Economy of Oil and Gas
Thus the volume of oil imports tends to decrease in a situation of rising international oil prices (Mankiw, 2011, p. This leads to slowdown of investments in the economy of the importing countries. The subsequent implications for the net oil importing countries are inflation in the economy as the supply of goods and services are not able to meet the demand of the markets. Due to circular flow of money, the rise of unemployment leads into lowering of national income and slowdown of the
Pages: 4 (1000 words), Essay
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If managers are rational, mergers should always lead to an increase in shareholder value. Discuss this statement in view of the relevant analysis of mergers and acquisitions.
All these advantages of mergers and acquisition must always be reflected in the growth of organizations shares, hence increasing the share value of an organization (Van Horne and Wachowicz, 2009). However, this is not always the case on most of the mergers that occur. This is because an acquisition and a merger is always a very complex procedure, and on most occasions, it is difficult for the managers to accurately evaluate the transactions, the benefits, the costs, and the legal and tax issues
Pages: 8 (2000 words), Essay
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In Europe after the second world war several cities approved price ceilings on rental accommodation.
Like all the other mandated price control of the government, rent control is also considered to be a law related to the fixation of maximum price or “rent ceiling”, which explains that what exactly the landlords must charge from the tenants. In order to make the rent ceiling work, the rent must be placed below the rate that would be prevailed otherwise. For example, an enactment prohibiting landlords from exceeding the apartment rent from $100,000 per month would have not been beneficial
Pages: 6 (1500 words), Essay
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Is the further emergence of global competitors (e.g. India or China) going to threaten the economic competitiveness of the EU?
The services sector accounts for about 70 percent of the entire nominal GDP of US $ 16.589 trillion while the industrial sector accounts for only 27 percent. The main export partners are the United States, Japan, Switzerland, China, Russia and Turkey while the main import partners are China (16.2) per cent, Russia (12) per cent and United States (11) per cent (World Bank, 2014).China has the second largest economy and has gross domestic product (GDP) of almost $ 11 trillion and economic growth
Pages: 8 (2000 words), Essay
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International Traide - Japan and USA
Comparative advantage involves a country maximally making use of its resources in the most competitive way without considering competition from other countries producing similar products. Therefore, due to adequate minerals, suitable climate for agriculture practice, adequate labor force, and support by new innovation ideas and highly developed infrastructure make comparative advantage among countries. Comparative advantage encourages countries to focus on producing goods and services they are
Pages: 8 (2000 words), Essay
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International economics
The above mentioned two graphs clearly stated about the import and the export patterns of Singapore at the present currency rate i. Singapore $1~ $0. Respectively, it can be stated that the export rate within the four fiscal years have elevated, which has apparently brought in huge loads of foreign exchange in comparison to that of the imported rates regardless of the fact that the import rates have also elevated much. However, if the evaluation is conducted depending on the types of import
Pages: 10 (2500 words), Essay
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Intermediate Macroeconomics
These competitive benefits of crude oil over the other alternatives create the aggregate demand of the precious natural resource. However, this natural resource is continue to deplete at a similar pace to that of increasing demand due to the over exploitation of the same. In addition, as crude oil is a non-renewable source of energy, hence it cannot be replenished after the complete use of the same. This has resulted in the constant price rise of crude oil in the international market over the
Pages: 4 (1000 words), Essay
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Is the search for lower labour costs a major driver of Chinese outward FDI?
The second case deals with market based production where the goods are produced in the foreign markets and then they are exchanged within the countries. The final case comprises of the vertical integration of FDI where the components are moved from one country to another for further processing. There is a complementary relationship between trade and international production and there is an expected increase in the import and export of goods and services when the raw materials are used for
Pages: 15 (3750 words), Essay
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