...current economic situation in the U.S. economy. Unemployment, inflation and interest rates are key elements of the current situation. Unemployment is classified as persons or individuals that are unemployed, actively looking for work and are currently available to work. The unemployment rate has decrease from 9.7 percent and is currently at 8 percent in the U.S. today, five years ago unemployment reached 4.3 percent in the U.S. Inflation is the sustained increase in price of all goods and services in the economy. In our current economy, inflation is at an average 2.1 percent and relative to jobs, when inflation is low, there tends to be a level of high unemployment. The inflation rate five years ago was at 3 percent. http://forecasts.org/inflation.htm Although the recent recession has formally ended, U.S. economic growth remains subpar, unemployment remains unacceptably high and the pace of job creation remains unacceptably slow. Real gross domestic product (GDP) growth has averaged just 2.5 percent in the 10 quarters since the economy hit bottom, about half the normal economic growth rate following a recession. The unemployment rate remains in the range of 8 percent, and less than half of the 8.7 million workers who lost their jobs during the recession are back at work. Simply put, America’s economy is underperforming. http://businessroundtable.org/studies-and-reports/permitting-jobs-and-business-investment Compared to the U.S. economy five (5) years ago, the unemployment...
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...and real values is that real values are adjusted for inflation, while nominal values are not. As a result, nominal GDP will often appear higher than real GDP. Nominal values of GDP (or other income measures) from different time periods can differ due to changes in quantities of goods and services and/or changes in general price levels. As a result, taking price levels (or inflation) into account is necessary when determining if we are really better or worse off when making comparisons between different time periods. Values for real GDP are adjusted for differences in prices levels, while figures for nominal GDP are not. Gross Domestic Product (GDP) involves a calculation of the total value of the goods and services generated within an economy in a stated or identified time period. The main...
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...Running head: MACROECONOMIC FACTORS AND THE ECONOMY 1 Macroeconomic Factors and the Economy Economics 100 Strayer University March 6, 2012 Author’s Note This paper was prepared for Economics 100, taught by Professor Olanrewaju. MACROECONOMIC FACTORS AND THE ECONOMY 2 Abstract This paper discusses about how a monetary policy causes specific macroeconomic factors such as GDP, interest rates, inflation, and unemployment. It contains how monetary policies differ in managing an economy. It includes the proposed circumstances why or what would have happened if the monopoly was successful. MICROECONOMIC FACTORS AND THE ECONOMY 3 Introduction What happens around the globe affects us and our families in ways that are uncontrollable in previous years. Today, we faced with many layoffs and cut back production and flooded with business-and economics-related articles about massive layoffs and limited resources by which we all live by. It...
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...MANAGEMENT LECTURER: MR TAIWO OLAJUMOKE BATCH: 11 LEVEL: 4 BUSINESS ENVIROMENT | Introduction | 3 | 1.1 | Identify the purpose of organisations | 3-4 | 1.2 | Describe to which extent Iceland Supermarket Ltd meets objectives of its different stakeholders. | 5-6 | 1.3 | Explain various responsibilities of Iceland | 7 | 2.1 | Different economic systems | 8-9 | 2.2 | Fiscal and monetary policy | 10-12 | 2.3 | Competition policy and other regulatory mechanism | 13-14 | 3.1 | Market structures determine the pricing and output decisions | 15-21 | 3.2 | Which market forces shape Iceland Supermarket responses | 21-22 | 3.3 | How the business and cultural environments shape the behaviour of Iceland | 22-23 | 4.1 | Significance of international trade to Iceland Supermarket | 23 | 4.2 | Impact of global factors on Iceland Supermarket | 24 | 4.3 | Impact of policies of the European Union on Iceland Supermarket | 25 | | Conclusion | 26 | | References “ | 27 | CONTENTS “ Introduction of Business Environment Controlling the environment in which businesses are being operated is called business environment. There are two types of business environments, internal and external environment which are necessary for survival and success of a business. Internal business environment are the factors...
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...Curves 2.3 Equilibrium 2.3.1 Determining a Competitive Equilibrium 5.1 The Basic Assumptions of Competitive Markets 5.1.1 Understanding the Role of Price 5.1.2 Understanding Market Structures 6.1 Monopolies 6.1.1 Defining Monopoly Power 6.1.2 Defining Marginal Revenue for a Firm with Market Power 6.1.3 Determining the Monopolist's Profit-Maximizing Output and Price 6.3 Oligopoly 6.3.1 Introducing Oligopoly and the Prisoner's Dilemma 6.3.2 Understanding a Cartel as a Prisoner's Dilemma 6.4 Monopolistic Competition 6.4.1 Defining Monopolistic Competition 6.4.2 Understanding Pricing and Output under Monopolistic Competition Competency: 309.1.4 Economic Variables and the Economy 1.4 Production Possibilities 1.4.1 Understanding the Concept of Production Possibilities Frontiers 1.4.2 Understanding How a Change in Technology or Resources Affects the PPF 10.1 Aggregate Output and Income 10.1.1 The Production Possibilities Frontier: Macroeconomic Applications 10.1.2 The Circular Flow Model 10.1.3 Real GDP 10.2 Approaches to Calculating GDP 10.2.1 The Expenditures Approach 10.2.2 The Income Approach Competency: 309.1.4 Economic Variables and the Economy 11.1 The Business Cycle 11.1.1 Recessions,...
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...involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing countries like India and China moving towards a full market oriented economy (economy watch 2010:1). The social democratic government of Australia adopted the principals of market economy after the financial...
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...ECO 100 – Principles of Economics COURSE DESCRIPTION Presents a survey of basic macro- and microeconomic principles and concepts. Reviews the economic dynamics of market forces affecting competition, different economic systems, the role of government in the economy, and economic aspects of international trade. Discusses the labor market, interest rates and the supply of money, and performance of a national economy. Examines the use of economics in business decisions, considering such principles as opportunity costs, diminishing returns, and the marginal principle. INSTRUCTIONAL MATERIALS Required Resources O'Sullivan, A., Sheffrin, S., & Perez, S. (2012). Survey of economics: Principles, applications, and tools (5th ed.). Upper Saddle River, NJ: Pearson-Prentice Hall. MyEconLab book key Note: This book key comes with the purchase of a new textbook and is needed in order to access MyEconLab. Supplemental Resources Aaronson, D., Mazumder, B., & Schechter, S. (2010). What is behind the rise in long-term unemployment? Economic Perspectives, 34(3/4), 28-51. Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. American Journal of Public Health, 100(2), 216-22 Heyne, P., Boettke, P. J., & Prychitko, D. L. (2010). The economic way of thinking. (12th ed.). Upper Saddle River: Pearson-Prentice Hall. High, J. (2011). Economic Theory and the Rise of Big Business in...
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...Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following statements is correct? A) By and large, managerial decisions are not affected by either microeconomic or macroeconomic forces. B) Managerial decisions are affected primarily by macroeconomic forces. C) Managerial decisions are affected by both microeconomic and macroeconomic forces. D) Managerial decisions are affected primarily by microeconomic forces. 1) 2) Walmartʹs decision in 1994 to continue operating stores in specific cities in Mexico when other firms were pulling out would be best classified as: A) a microeconomic decision. B) a macroeconomic decision. C) both a microeconomic and a macroeconomic decision. D) neither a microeconomic nor a macroeconomic decision. 2) 3) Which of the following would be considered an example of a macroeconomic problem? A) Should Microsoft reduce the price of its Windows operating system? B) Should JP Morgan Chase increase the interest rate it charges its credit card customers? C) Should Mitsubishi eliminate one of its production shifts? D) Should the federal government extend the eligibility period for unemployment benefits? 3) 4) Walmartʹs entry into the market in Mexico had the effect of: A) reducing competition and raising the prices of many of the goods it sells. B) increasing competition and raising the prices of many of the goods it sells...
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...behavior when there is change in the market-wide policies. One of the two applications that are widely studied in the macroeconomics is the Fiscal Policy, Monetary Policy and aspect of Monopoly. The fiscal policy is implemented by the government of the U.S. The monetary policy is reviewed during the schedule of 8 meetings per year, during which it is analyzed and discussed that how economic and financial developments taking place in the country and determines the appropriate stance of the monetary policy. However, monopoly disables new and young businesses to grow or take birth with such heavy financial requirements for entering in the markets. This paper deals with the current economic situation, especially at the macro level, faced by the United States of America, the world’s largest economy and then it is compared with the economy of Canada and several aspects are discussed in the later part of the paper. Discussion United States The past twenty years has seen a great shift in economics of this country. In the early 1990’s the U.S. economy was struggling and was a major topic of the previous presidential election. Fast forward twenty years and an economic boom and bust later, the presidential election again was based on a struggling economy. By taking a closer look at the policies and practices that took place in that span we might be able to find a better understanding of how our government can influence our economy (Bls.gov, 2014). In the field of economics...
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...behaviour and markets analysis. Understand and describe the concepts and measurement of gross domestic product, unemployment, and inflation. Understand and describe the difference between business cycles and economic growth and the factors that contribute to each. Page 1 of 6 Understand and describe the concept of Macroeconomic Equilibrium. Understand and describe how Aggregate Demand and Aggregate Supply determine equilibrium price and output in the short-run and long-run. Understand and describe the multiplier concept, how it is computed, and its qualifications and limitations. Analyze and describe the concepts, tools, and implementation of fiscal policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity. Understanding the concepts, tools, and implementation of monetary policy, its limitations and relative advantages and disadvantages, and how it affects aggregate economic activity. Pedagogy Course will be delivered through a combination of different methodologies, like – Lectures, Readings, Simulation, Case studies etc. Nucleus & ERP All course related communication will...
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...BUSINESS ENVIRONMENT Y/601/0546 MARKET ENVIRONMENT AND ORGANIZATIONAL BEHAVIOUR MOHAMED ABOOBUCKER JAZEER AHAMED Introduction Business environment is composed of two words ‘Business’ and ‘Environment’. In economic sense ‘Business’ means human activities like production, purchase or extraction or sales of products or services that are performed to earn money. Meanwhile ‘Environment’ means the aspect of surroundings. Business environment is the set of conditions institutional, political, economical, legal or social that is uncontrollable and affects the functions of the organization. Business environment consists of two components: external environment and internal environment. Internal environment includes of 5 M’s like management, money, machinery, material and man. On the other hand, External environment consists of demo-graphical factors, socio-cultural factors, political factors, geo-physical factors, government and legal factors. LO1 1.1 ------------------------------------------------- Different Types of Organizations Organizations A social unit of people that is structured and managed to meet a need or to pursue collective goals. All organizations have a management structure that determines relationships between the different activities and the members, and subdivides and assigns roles, responsibilities, and authority to carry out different tasks. Organizations are open systems they affect and are affected by their environment. Read more: http://www...
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...Chapter 18: MANAGING THE ECONOMY 1. Economic growth is an …………… in the total output of good and service (GDP) in a nation over time a) Decrease b) Increase c) No change 2. Privatisation refers to: a) The transfer of asset or different forms of economic activity from the public sector the private sector b) The change in legal status of a firm of economic from a public to a private company c) The ownership of share in private company d) The movement of private capital from one country to another 3. Which of the following best describes fiscal policy: a) Setting interest rates b) Providing incentives for business to earn profits c) The use of government spending, taxation d) Allocating government spending to priorities 4. Which of the following supports deregulation of the industry: a) To chronological changes has made it possible for many industries to become more competitive b) As few real ‘natural monopolies’ exist, there is rarely a reason for government regulation c) Many instances of government regulation have succeeded in reducing competition in industries where competition may be beneficial d) All of the above 5. Privatisation is the transfer of: a) Private-owned business sold to the public sector b) Sales of multinational corporation to the government c) Government business enterprises sold to the private sector d) Sales of public stock of good to private individual 6....
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...Cambridge Resources for the IB Diploma Paper 1 (SL and HL) markschemes Examples of markschemes for Exam practice: paper 1 in the Economics for the IB Diploma CD-ROM are provided below. Paper 1 section A: Microeconomics Chapter 2 Competitive markets: demand and supply SL/HL core topics Part (a) questions 2.3 (a) Answers may include: • Definitions of demand and quantity demanded. • Theory of demand: law of demand with reference to changes in demand and factors that can cause changes in demand. • Demand and supply diagram showing initial equilibrium price and quantity, and a leftward shift in the demand curve, resulting in a lower equilibrium price and quantity and showing that there is no contradiction. • Examples of demand curve shifts and movements along a demand curve. Answers may include: • Definitions of supply and quantity supplied. • Theory of supply: the law of supply with reference to changes in supply and factors that can cause changes in supply. • Demand and supply diagram showing initial equilibrium price and quantity, and a rightward shift in the supply curve, resulting in a lower equilibrium price and greater equilibrium quantity. • Examples of supply curve shifts and movements along a supply curve. Answers may include: • Definitions of normal good, excess demand, reallocation of resources. • Theory of demand and supply with reference to excess demand, the factors that can cause shifts in the demand curve and the role...
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...which type of tax? a. Progressive b. Regressive 2. The principle of ___________ was the policy of making a military, political and ideological commitment to vulnerable countries in order to prevent the spread of communism. a. Containment b. Deterrence c. Marshall Plan d. War Powers Act 3. The theories of which economist helped justify the increase in government spending during the New Deal? a. Ben Bernanke b. Alan Greenspan c. Adam Smith d. John Maynard Keynes 4. Which of the following entities prepares the budget for Congress? a. Appropriations Committee b. Department of Monetary Management c. Congressional Budget Office d. Budget Committee 5. The conduct of international relations is known as a. Coercion b. Threats c. Subterfuge d. Diplomacy 6. When the government spends more than it makes in a fiscal year, it’s called: a. Deficit b. National Debt c. Surplus d. Balanced budget 7. The expenditures that the government is legally required to pay are called: a. Deficit spending b. Mandatory spending c. Discretionary Spending d. Required spending 8. Governors on the Federal Reserve serve a ___ year term. a. 2 b. 6 c. 10 d. 14 9. The first step of the policy making process is: a. Agenda setting b. Policy Outputs c. Policy Outcomes d. Policy Objectives 10. Which of the following is not a function of the Federal Reserve? a. Make loans...
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...------------------------------------------------- Analysis of an organisation’s Business Environment ------------------------------------------------- ------------------------------------------------- Submitted To: ------------------------------------------------- Submitted By: Date of Submission: Executive Summary: Before setting up business organization, the owner or the manager of that organization decides which function the business organization has to perform and design its objectives. After those organizations have to decide about which strategies they use to achieve these objectives. There are some internal and external parties involved with large or even small business organization known as stakeholders. Stakeholders may be shareholders, managers or employees, customers, suppliers, lenders, and government. They have some objectives also. Organizations are responsible for their objectives. Organizations are also responsible to the society, and their customers. Every organization should concern about the business and cultural environment. Understanding the business and cultural environment organization can find out its strength, weakness, opportunity, and threats. Knowing these organization can overcome the threats and weakness and can go global. Through international trade organization can easily import or export goods and services which help to increase their economic conditions. Objective of British...
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