...Homework on Environmental Economics 1. Draw a graph showing the private marginal cost, social marginal cost, private marginal benefit, and social marginal benefit of gasoline when there is a negative externality – for example, dirty exhaust from a tailpipe. Assume that neither supply nor demand is perfectly elastic or perfectly inelastic. [pic] 2. If government chose to tackle the problem by taxing the sellers of gasoline a constant tax per gallon sold, show these things on your graph: a. the tax b. the new equilibrium price and quantity [pic] 3. Is the increase in price equal to the tax per gallon? Use your graph to answer this question. Yes it should be unless there are additional taxes 4. Is there any way to figure out if the tax is equal to the external cost of the gasoline? 5. Consumers obviously have less money left, after they buy gasoline, as a result of the tax. Give an example of something government can do to help consumers, while maintaining the tax and its resulting disincentive for purchasing gasoline. What are the pros and cons of your idea? Government can do things to make it so people don’t have to use cars, like improve public transit, by putting in bus lanes and promoting alternative methods of transportation like better bike routes with lanes and traffic lights for bikers. This would be good in the sense that we are making solid infrastructure investments, but it would be...
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...1. Why was/were the firm(s) investigated for antitrust behavior? The Justice Department and the states believe that Microsoft has used its monopoly in operating system software to protect its dominance and eliminate competitors. The government says that in the long run, consumers will be harmed, because there will be less competition and fewer choices. More specifically, the government contends that Microsoft has engaged in actions to preserve its Windows monopoly that violate antitrust laws. The government also maintains that the company has used the power of its Windows monopoly to attempt to monopolize the market for Internet browsing software. In addition, government lawyers allege that the company has committed other anti-competitive acts. Microsoft contends that it is simply trying to innovate its products. The company contends that its actions are legal and says that there's no grounds of consumer indignation over the practices that the government is targeting. If the government wins at the trial court, it has already specified that it wants Microsoft to cancel contracts deemed exclusionary. In addition, the government wants Microsoft either to strip out its Internet browsing technology from Windows 98 or to include a rival browser made by Netscape Communications Corp. The plaintiffs alleged that Microsoft abused monopoly power on Intel-based personal computers in its handling of operating system sales and web browser sales. The issue central to the case was whether...
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...Course Overview: Econ 251 is intended to introduce you to microeconomic theory and its application in everyday life. The course will explain how individual consumers and producers together determine the prices and quantities of goods available in the marketplace. We will investigate the underlying incentives of consumers to buy goods and of firms to produce products that satisfy consumer demand. In addition, we'll look at how government can help or hinder market efficiency. The textbook for the course is Microeconomics for Economics 251, published by Pearson Custom Publishing (ISBN: 1256128546). The publisher has created an online resource site for this class, Pearson MyLab, which you will use for completing several homework assignments. An e-text is available with the online site as well. All homework will be submitted and graded online. Estimated Course Schedule: Date Topic January 10 & 12 Chapter 1: What Is Economics? Chapter 2: The Economic Problem January 17 & 19 Chapter 3: Demand and Supply January 24 & 26...
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...Economics 242: Economics of Gender Spring 2013 Professor: Karine Moe Course Preceptor: Sasha Indarte Office: 310F Carnegie Hall Email: moe@macalester.edu Web: http://www.macalester.edu/~moe Phone: 696-6793 Office Hours: Mondays 1:30-2:30, Wednesdays 8:30-9:15, Thursdays 1:30-2:30, other times by appointment Course Description: During the past fifty years, Americans have witnessed dramatic changes in the structure of the family. The changes in marriage, divorce, and fertility rates since the 1960s have been inextricably linked with changes in attitudes towards work and, in particular, with changes in women's work patterns both in and out of the household. In that same time period, economists have come to realize that standard economic theory can be applied to many aspects of family life including marriage, fertility, divorce, and the division of work and leisure within the household. In this course we will use economic theory, both neo-classical and feminist, to explore how gender differences lead to different economic outcomes for men and women, both within families and in the marketplace. Course Prerequisite: Economics 119, Principles of Economics, is a necessary prerequisite, since we will make use of concepts, vocabulary, analytical skills and other tools developed in the Principles course. Course Readings: The following texts are required and can be purchased at the Macalester Bookstore or online. Additional readings will be made available...
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...Lu Li NetID: ll2937 HW #3 - TELOXY PART (A) - Answer Questions #1 and #2. 1. Using expected value, is it economically better to make or buy the component? Expected percent of defective of all product: Ex=0%*10%+10%*20%+20%*30%+30%*25%+40%*15%=21.5% Buy: 72*10,000=720,000 Make: 100,000+40*10,000+120*10,000*21.5%=100,000+400,000+258,000=758,000 So it’s better to buy it. 2. Strategically thinking, why might management opt for other than the most economical choice? Strategically thinking, if Teloxy decide to produce more new product, it’s a better chose to manufacture component in house. For several reasons, first, the cost of manufacture will lower than buy it when the amount of product more than 20,000 unit. Second, the experienced worker or management can reduce the percent of defective, which means less removed and repaired cost. HW #3 - TELOXY PART (B) - Answer Questions #1, #2 and #3. 1. Calculate the economic feasibility of make or buy. Ex=21.5% 12,000 units Defective: 12000*21.5%=2580 So to produce 10000 unit product, only need repair 580 unit Total cost: 150000+40*12000+120+580=699600 14,000unit Defective: 14000*21.5%=3010 So to produce 10000unit product, did not need repair. Total cost: 150000+40+14000+0=710000 2. Should the probability of defects change if we produce 18,000 units as opposed to 10,000 units? In my personal opinion, the probability of defects should change. In real life, it is reasonable to believe that more experienced...
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...Positive Impacts Of WTO On Chinese People's Daily Life 【Abstract】Joining the WTO brought many effects to our country, both advantages and disadvantages. These effects embodied in all aspects of economic, political, and People's Daily life was all affected. This paper is to discuss the positive impacts of WTO on Chinese people's daily life. By analyzing the obviously changing in our daily life, this paper will give a conclusion about positive impacts. 【Key Words】 WTO; People’s Daily Life; Chinese 1. China and WTO On December.11, 2001, China has become the WTO's 143th formal member. The Chinese people are very proud to join WTO, because that means our economy has become one part of the world economy and Chinese people could know more about the world form then on. In a world, we become closer to each other. China's market been expanded, but People's employment and daily life is facing new opportunities and challenges. To this, some people think that after joining the WTO there will be more opportunities, some people think that our life might be hampered and we even have to change the way we live. However, think about the good side, China entry into the WTO, brought many benefits to Chinese People's Daily life. 2. Positive impacts of WTO on Chinese People's Daily life 2.1Employment opportunities are increased International unemployment and employment commission and China international development of talent exchange association’s survey shows that there will be...
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...HW assignment 4 (Week9): Analysis of the Business Cycle. The main objective of this exercise is to get students thinking analytically and creatively about the two-edged nature of many economic phenomena so as to present a “balanced” perspective based on economics principles, theories and concepts against the backdrop of conceptual and analytical thinking. Visit the web sites or similar ones containing national economic data. National Economic Accounts at the Bureau of Labor Statistics at http://www.bea.gov , Bureau of Labor Statistics at http://www.bls.gov/data/, The Conference Board at http://www.conference-board.org/economics/indicators.cfm, US Census Bureau at http://www.census.gov/mtis/www/mtis_current.html, National Bureau of Economic Research at http://www.nber.org/releases/, The Federal Reserve at http://www.federalreserve.gov/releases/h15/update/ Review the most recent 8 – 12 months of data on real GDP growth, inflation/CPI, unemployment, Interest rates, consumer confidence index, consumer sentiment index, inventory level, and other relevant economic data. Based on the collected data, analyze the current macroeconomic situation and its impact on any two(2) Monopolistically competitive firms of your choice. Explore in particular how the two companies’ respond to the macroeconomic conditions in terms of their: • stock performance, • current and future sales revenue, • current and future profits, • labor costs, and • hiring decisions. Your paper should...
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...HW: Pg. 34: 2,4,7 Response to #2: The study of international business is important for all walks of life to study and understand. The overall growth of IB has increased substantially over the last 50 years. As a result, international trade has become evermore important to the stability of our national economy, and to the global economy as a whole. Individuals who are going to work for small firms should be aware of where their products are coming from, how much it costs to produce and ship them, etc. Globalization refers to abolishment of ‘economic boundaries.’ Technological advances such as the World Wide Web, cellular phones, and social media have proliferated this phenomenon. This means that we are all players in one, and only one economy…the global economy. Response to #4: Ultimately, there’s no logic found in this statement. Domestic business refers to all trade activity within the borders of our nation, and international business refers to all trade activity that crosses sovereign borders. Understanding where raw materials and finished goods alike are imported from/exported to are vital to understanding the global economy as a whole. Response(s) to #7: a. The manufacturing of flat-panel TVs is migrating to different locations around the world because it is more cost-effective to produce them in low-cost locations. b. The clear winner of the globalization of the flat-panel industry is the US based consumers, as finding the most cost-efficient way to...
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...HW 4 International Economics, ECON 630 Due on Tuesday, August 11 @ 11:00pm PT (Total 50 points) 1. You notice in The Wall Street Journal that the interest rate in the U.S. money markets is 7.5 percent and the interest rate in London is 9 percent. Would you expect the pound to be at premium or discount? Why? (15 points) The pound would be at discount. Because there is difference between US interest rate and UK interest rate. And UK interest rate is higher than US interest rate. This difference will be minimized by the difference between the current spot rate and the forward exchange rate. 2. Why is relative purchasing power parity (PPP) more likely to hold in a hyperinflationary period than in a more “normal” period of price behavior? (15 points) In a hyperinflationary period, money supplies is excess and price rises rapidly. Home currency will depreciate obviously due to rapid changes of price level. In normal period, the price level and exchange rate change slowly. In a hyperinflationary period these two change relatively in coincidence which means PPP more likely to hold of price behavior. 3. In the portfolio balance model, what effect, other things equal, will a foreign government’s budget deficit financed by issuing bonds have on the home country’s currency value and why? (Assume a flexible exchange rate.) (10 points) If a foreign government issues bond, the risk premium will increase. And the rate of return abroad will decrease...
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...Microeconomics 8/27/14 Economics is a social science that studies how people allocate their limited resources to satisfy their unlimited wants Microeconomics consist of consumers, firms, individual markets Examples: a sales tax on the cigarette industry, agricultural price support programs on the cotton industry Macroeconomics consist of economy as a whole (economic growth, inflation, unemployment), how economies interact Examples: an increasing inflation rate on national living standards, an increasing inflation rate on national living standards, Obamacare Economic models- Model: a simplified representation of reality Graphs and equations The Circular-Flow Diagram • Households – Consume goods and services – Own factors of production (e.g. labor) • Firms: – Produce goods and services Learn the Role of consumers and firms • Importance of markets • Economic agents are interrelated Does not include government, international markets, unemployment, raw materials, non-profits, banks or bank regulators, no illegal activities Course Outline • Markets – Gains from Trade – Supply and Demand – Efficiency of Markets – Price Controls, Taxes • Consumers and Producers – Making Decisions • What if markets fail? – Monopolies, Externalities, Public Goods Microeconomics Notes 8/29/14 • Today: –Opportunity cost – Production possibility frontier –Gains from trade • Scarcity – trade-offs • Making choices: compare benefits and costs Opportunity cost: what you...
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... Department of Management Name of the faculty member : Neha Shandilya Course No. ECO515 Course Title: Managerial Economics Class: MBA Semester I Section: R1001 Batch 2010-12 Max. Marks: 15 Date of Allotment:18/8/10 Date of Submission: 01/09/10 S. no. Roll No. Topic No. Objectives of Aca demic Activity Topic Evaluation Details Each student will attempt all the questions. To make the students understood of basic managerial economic concepts and how these concepts are applied in economic decision making in present day economy Each student will attempt all the questions given in the assignment i.e. 15 questions for each student. A test will be conduct after submission of assignment. THERE IS NO MARKS FOR SUBMISSION. But only those students will be allowed to sit in test those who have submitted their assignments. 3 questions will asked in test and evaluations will be done out of 15 marks. Date: Sign. of Faculty member Remarks by HOD (Mandatory) Sig. of HOD with date Remarks by HOS (Mandatory) Sig. of HOS with date ECO515-Mangerial Economics HW-1 Note: No assignment shall be accepted after the date of submission. S.no....
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...Objectives To provide a basic understanding of economic reasoning, economic theory and economic policy, particularly for the study of the economy as a whole. Throughout the course, students will be introduced to: ● Define Gross National Product, Gross Domestic Product, Net National Product, National Income, Personal Income, and Disposable Income ● Explain the purpose of a price index, use a price index to calculate the rate of inflation, and distinguish between Demand-Pull inflation and Cost-Push Inflation ● Define unemployment in China, calculate unemployment and employment rates, and differentiate between frictional, cyclical, structural and seasonal unemployment ● Describe the phases of the business cycle and economic growth ● Explain the role of money and monetary policy ● Explain fiscal policy 2. Course Description/ Intended Learning Outcomes (Course ILOs) An introduction to the basic principles of economics with emphasis on the macroeconomic aspects of the entire economy. It deals with national income, national output, national employment, inflation, cyclical business fluctuations, economic growth, the role of money, theories of interest rates, stabilization policies, foreign exchange rates, monetary policy and fiscal policy. This course provides a common sense approach to the world of macroeconomic decisions and their impact on society. It is aimed at providing the necessary background in the economic issues of establishing, running and managing a...
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...The role of positive accounting theory. PAT has been the most significant accounting research agendas during the past four decades (Kabir). Before the arrival of PAT, normative accounting research had been the leading research tradition in accounting. Normative accounting theorists concentrated in developing accounting principles for recognition and measurement issues. In contrast with normative accounting theory which deals with “should” kind questions, PAT deals with “is” kind questions. According to Watts and Zimmerman “the objective of positive accounting theory is to explain and predict accounting practice. It explains why financial reports are prepared. Positive accounting theorists have explained the accounting practices by including the measures accountants employ to calculate total assets, total liabilities, owners' equity and net income. Moreover, they also claim that positive accounting theory provides a scientific explanations of accounting practice that is that their findings are empirically test. PAT also examines the effects of accounting standards on management’s self-interest hence PAT recognizes management biased attitude on accounting standards which are likely to affect corporates lobbying on accounting standards. Pat also identifies certain factors that are expected to affect a firms cash flows and share price .These factors are taxes, political costs and information production and management compensation. PAT theoretically played its role in examining...
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...HW#1 FIN 525 International Financial Management Fall/2014 Please read and summarize the two articles attached below: 1) Why Some Countries and Cities Are So Much More Expensive Than Others 2) Are US Multinationals Abandoning America? Write a 1-2 page summary for each. It’s due in one week. Please bring a hardcopy to class. Why Some Countries and Cities Are So Much More Expensive Than Others By Derek Thompson The Atlantic Magazine Our special report on the world of prices wouldn't be complete without asking, and trying to answer, a big, and surprisingly complex, question: How do pricey countries get that way? [pic] Reuters ChinaZenaide Muneton is a nanny in New York City. Last year, she made more than $200,000, Planet Money reports. Yes, with five zeros. How in the world can Manhattan nannies be worth $200,000 a year? One answer is that they're more talented than your typical babysitter. The highest-paid nannies can cook four-course macrobiotic meals and know their way around a Zamboni (those are actual examples of nanny skills). But the number-one reason why nannies in Manhattan can get paid $200,000 is very simple. Rich families can afford it. And in the market for locally-delivered services, like caring for a child, prices rise as high as the clientele can afford to pay. What $200,000 nannies have to do with the price of tea in Six-figure nannies don't rule the world, but they help explain the world of prices. On a global scale, the price of locally-delivered...
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...National Cheng-Chi University 研究所MBA: Tuesdays 6:10-9 Commerce Building 260306 Yee-Tien (Ted) Fu Undergraduate: Tuesdays 9:10:noon Commerce 260508 Autumn 2009 (3 units) Course Objective This course examines important issues in the rapidly evolving area of international financial markets. It focuses on various aspects of international portfolio management and open-economy macroeconomics, and is a natural extension to the theories and practical issues explored in Investments and/or Finance. This course is aimed at students wishing to acquire a sound understanding of the main opportunities in international investments. For example, the relevance of hedging in the management of currency risk will be studied in light of theoretical results and empirical evidence. We will also briefly cover foreign direct investment (FDI), since in general, the revenue generated from FDI by U.S. firms is about three times as large as the revenue generated from the exporting of U.S. goods by U.S. firms. Due to the ever increasing importance of international corporate governance, there is a corresponding need to decipher and use information in financial reports. At least one class meeting and one case study will touch on some key issues in international financial reporting and analysis, such as financial disclosure/transparency, incentives for off-balance sheet liabilities, hedge accounting, lease accounting, footnote disclosures, and intercorporate equity investments, and international...
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