discuss its relevance for Business and Government Price elasticity of demand According to the law of demand: the lower the price the more product is bought. But consumer response to changes in price can vary significantly from product to product. Economists measure the response (sensitivity) of consumers to changes in product prices, using the concept of price elasticity.The gist of the concept of price elasticity is:• if small changes in price leading to significant changes in the quantity bought
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tool. Business pay their low wage workers more and fewer of them should live in proverty.Higher wage should fight proverty. However, labor economists have repeatedly studied the effects of wage increase.They find no correlation between higher wage and lower poverty. Raising the wage to $9 an hour would not reduce poverty. According to the saying of labor economist I also believe it because there is no evidence of lower wage cause poverty I would believe it has to do more with how people deals with
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froze credit to companies, and then withdrew their investments from Europe, especially from Germany. The crisis started with the stock market, spread to the banks and then to production. According to economist, the economic recession had already started before the stock market crash. Some economists and historians have argued that the bank crisis caused the Great Depression. Others argued that banks failed as a result of the economic collapse. Whether the fear of bank failures caused the Depression
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Foreign Direct Investment in the Indian Telecommunications Sector By Keith Green Abstract This paper will examine the current status of foreign direct investment (FDI) in the Indian telecommunications sector and the issues facing foreign companies seeking to invest in the Indian telecommunications sector. The paper concludes with a brief econometric examination of the factors influencing the level of FDI in the Indian telecommunications sector. Introduction In the early 1990s India began to open
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maximization of happiness” (P.110). This rule based on morally not to hurt mankind, do not interfere with each other’s freedom and promote well being in the society. 2. What do economists mean by the "declining marginal utility of money"? Utilitarian tend to favor greater inequality of income goes back to what economist would call the declining marginal utility of money. (P. 112) It mean that utilitarian want more worker participation and more equal distribution. For example utilitarian will vote
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analysis, which answers the question “What is?” or “What will be?” Economists contribute to policy debates by conducting positive analyses about the consequences of alternative actions. • Normative analysis answers the question “What ought to be?” • The choices made by individuals, firms, and governments answer three questions: What products do we produce? How do we produce the products? Who consumes the products? • To think like economists, we (a) use assumptions to simplify, (b) use the notion of ceteris
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to me and says, “I just got an offer at this investment bank and I’m going to take it,” I want to know how should I feel about it. I will be happy for her individually, but still I wonder: Is this a good decision for society as a whole? As an economist, I look at it this way: Every profession produces both private returns — the fruits of labor that a person enjoys — and social returns — those that society enjoys. If I set up a shop on Etsy selling photographs, my private returns may be defined
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The Treaty of Lisbon: An Analysis After more than 50 years of European integration, the Treaty of Lisbon is a new step forward but also a deeply contested concept. This essay begins with an overview of how the new Treaty came about and why it was seen as necessary, followed by an analysis of its new developments structured into four parts. Firstly, it considers how the LT is supposed to increase the EU’s effectiveness through more qualified majority voting, the co-decision procedure and through
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economy would correct itself in the long run, but was famously quoted, “In the long run we will all be dead,” which perfectly reflects people’s growing doubt in their economies during the Great Depression. Motivated by this belief Keynes, a British economist, challenged Classical economic thought, which was the mainstream economic theory at the time, “…[C]lassical economics offered
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will be tempered by a ballooning trade deficit. An economy with a massive trade deficit is unsustainable, and we must change our trade policies if we want to see our nation prosper. The official unemployment figure is currently 8.2 percent. Many economists estimate the rate at which the economy is considered to be at full employment to be about 4 percent, because even under the best conditions there will be individuals seeking jobs. Certainly full employment is desirable, but under our current policies
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