Domestic business is any transaction that has to deal with the commercial activities conducted within a single nation. The economic transactions that are made by a domestic business within the borders of its nation typically have the advantage of only having to deal with the local currency, such as the dollar for the United States. It also has the advantage of dealing with the local customs, religions, government, culture, tax system and regulations. Domestic business is usually where your stronger
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Adapted Homework, Ch. 11 (11 points possible) 1. “An Analysis of sustainability is similar to a five forces analysis.” Comment on this, focusing on the firm you’ve been studying for your term project. (1 point) A sustainability analysis is similar to a five forces analysis because they are focus on creating competitive advantage. The sustainability analysis is to analyze and find a way to compete with competitors and deal with potential entrants, in order to maintain profits in the long
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Mercer University Econ 151: Principles of Macroeconomics Homework 03_ Answers Name: Student ID: 1) As the real interest rate in the domestic loanable funds market increases, a. | the cost of purchasing goods and services during the current period will decrease. | b. | the net inflow of capital from abroad will increase. | c. | the inflationary premium will rise and the money rate of interest will decline. | d. | a trade surplus will occur. | ANS: B 2) Monetary policy can
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(1) Factors of production means inputs and finished goods means output. Input decides the quantity of output, and output depends upon the input. Input in the starting point and output is the finishing point of the production process. The resources used are factors of production such as land, labour, capital, and entrepreneur. These resources all cycle to create production and in turn will create an input, output process. An example of land would be anything from owning a farm house to having a
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Who does inflation help? According to our text “Inflation is the increase in the general level of prices of goods and services”(Gwartney, 2012). Our text goes on to explain that the “purchasing power of a dollar goes down when inflation is present” (Gwartney, 2012). Knowing that the power of a dollar is less one would believe inflation is not really good for anyone in the long run. Inflation can also reduce investments for companies and in some cases slow production of a product or service
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Week 2 Check Understanding Chapter 3 3. The Old Yogurt Factory has reduced the price of its popular Sundae from $2.25 to $1.75. As a result, the firm’s daily sales of these sundaes have increased from 1500 a day/ to 1800 a day. Compute the arc price elasticity of demand over this price and consumption quantity range. The arc price elasticity can be computed with the formula of arc elasticity. After the calculation we are getting that the arc price elasticity will be equal to 0.72 which is less
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The first prototypes of automobiles came into being in late 19th century. North America, Europe, Asia together have contributed significantly to production and organization of automobile industry throughout the 20th century. These innovation have made the automobile industry competitive. The automotive industry is dynamic and large. It provides jobs to many people especially in industrialized economies, approximately 1 in 10 people are employed
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Week 3 Chapter 5: Exercises 1, 5, 6, and 9 1. Prizer Corporation sales of snowmobiles: a. S = k(YZ)/P = 100(11,000 1200)/20,000 = 66,000 b. S = 100(11,000 1200)/17,500 = 75,429. Sales revenue rises. In general, when price falls and total revenue rises, we learn the snowmobiles are elastic. c. Obtain time series data on S, Y, Z and P and use regression techniques to estimate k. One way to do this is to use a double log style, as in Log S = log
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General Certificate of Education Advanced Subsidiary Examination January 2012 Economics Unit 1 ECON1 Markets and Market Failure Thursday 12 January 2012 9.00 am to 10.15 am For this paper you must have: an objective test answer sheet a black ball-point pen an AQA 8-page answer book. You may use a calculator. Time allowed 1 hour 15 minutes Section A (ECON1/1) Answer all questions on your objective test answer sheet. Use a black ball-point pen. Do not use
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1.) The biggest trigger was subprime borrowers’ large (in absolute terms) losses of residential mortgage loans. IKB’s Rhineland off-balance-sheet vehicle was also no longer rolling over the ABCP it issued in U.S, markets to fund its asset-backed securities. Commercial paper investors feared risk of default on these securities because of IKB’s difficulty in meeting its funding obligation. This led to runs on key institutions which had a detrimental effect on the financial system as a whole. This “Run
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