cc * Week 2 * Rationally, you should compare marginal benefit with marginal costs Do (all) individuals make rational decisions all of the time? * NO (Economies is a study of how rational individuals make decisions) Examples: * Many restaurants do stay open for lunch, although there are relatively few customers * Number of motor vehicle accidents does go up subsequent to introduction to seatbelt legislation Agenda Key Concept: Comparative Advantage Production Possibilities
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of Unilever. Then the content of free market economy and necessity of government’s intervention has been discussed along with objectives of fiscal policies. Then at the last part, the movements and shift supply-demand curves have been discussed in addition, the price elasticity of demand. Answer of Part-1 Threats and opportunities are related to external environment. For Unilever, threats may come from suppliers, government, labor union, environmentalists, consumers union etc. They may find the
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What Will Happen in the Future? An important indicator of what can be expected in the future is the 2010 pre-budget report. Growth estimated at 1.5% in 2010, reaching 3.5% in 2011 (figures reduced in the March Budget). This level of growth is supported by short term increases in government spending - estimated to rise by £31 billion. However, the government deficit is to be halved by 2013, suggesting potential conflict will arise. Experts, such as the man responsible for managing £618bn in bonds
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the value of the AU$ is determined by forces of demand and supply in the forex market. The exchange rate fluctuates in order to maintain equilibrium. These changes are known as appreciation and depreciation. An appreciation is when the value or purchasing power of the AU$ rises, whilst a depreciation is when it declines. An appreciation in the AU$ will occur if the demand for the AU$ exceeds the supply. This may be due to either an increase in demand or a decrease in supply. The graph below shows
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for the plethora of data about the world at war. The concepts pertaining to the benefits of the trade are very understandable, yet seem to be extremely selfish and somewhat cutthroat altogether. At the end of the day, it is all about supply and demand, which makes it smart business. Quantitative research provides information about the future based on past trends. The Bureau of Economic Analysis generates various closely inspected economic data that impacts the decisions of civil servants, enterprises
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contracting strategy (solution of problem 1) | Jan | Feb | Mar | Apr | May | June | Total | Demand forecast (units) | 2200 | 1500 | 1100 | 900 | 1100 | 1600 | 8400 | Initial inventory | 400 | | | | | | | Production requirement | 1800 | 1500 | 1100 | 900 | 1100 | 1600 | 8000 | Working days (per month) | 22 | 19 | 21 | 21 | 22 | 20 | 125 | Total hours required to meet monthly demand | 1800 x 5 = 9000 | 1500 x 5 = 7500 | 1100 x 5 = 5500 | 900 x 5 = 4500 | 1100 x 5 = 5500 | 1600 x
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model?(Points : 5) Responsiveness Return on assets Delivery performance Lead time Question 3.3.(TCO 1) The demand for housing is characterized by a regular pattern of increasing to a peak, then falling. When the demand reaches a low point, it then repeats the pattern. This pattern usually takes place over a 3- to 5-year period. This is an example of which type of demand pattern?(Points : 5) Autocorrelation Seasonality and cycles Step change Trend Question 4.4.(TCO 1) For Platinum
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WORKBOOK ANSWERS Edexcel A2 Economics Unit 4 The Global Economy This Answers document provides answers for the questions asked in the workbook. They are intended as a guide to give teachers and students feedback. Topic 1 Poverty and inequality in developed and developing countries Measuring poverty and inequality 1 A standard of living that fails to provide basic needs, such as food, shelter and clothing. (1 mark) Often measured by the number falling below a threshold
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goods and services. It is an indirect tax collected by a third party, | | |usually the seller, who in turn add the tax to the cost of the goods. | |Aggregate Demand (AD) |AD is the total demand for goods and services in the economy: AD= C+I+G+(X-M). | | |C= Total consumption /Expenditure in the economy
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curve, the economy must: A) reduce inputs. B) be more efficient. C) increase inputs. D) waste less. 2) When a decrease in the price of good A causes an increase in demand for good B, the goods are: A) inferior. B) normal. C) complements. D) substitutes. 3) Which of the following might shift the demand curve for butter to the right? A) An increase in the price of bread, a complement B) An increase in income C) A decrease in the price of margarine, a substitute D)
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