It does so, by showing that the higher the employee's self-esteem the more profit is made for the company which can also show that employees are more productive. 3. Are there other possible explanations for the data in Figure 1 that would not necessarily support the idea that employees’ self-esteem affects companies’ profits? If so, explain what they are. Provide three alternative explanations.
Explain why economies of scale are important to companies such as McDonald’s and GBK. Economies of scale gives big companies access to a larger market by allowing them to operate with greater geographical reach. Often, large firms in industries with high fixed costs can take advantage of savings that smaller firms cannot. Economies of scale characterizes a production process in which an increase in the scale of the firm causes a decrease in the long run average cost per unit. Economies of scale can be enjoyed by any size firm expanding its scale of operation.
There are still many people who criticize and oppose the raising the minimum wage. Many believe that increasing the minimum wage would maximize the unemployment rate when in reality it would actually create more job opportunities. This is because increasing the minimum wage will require high relative price for unskilled labor which concludes that firms will have a high demand for skilled labor. The increase of minimum wage increases earnings and reduces
A. Demographics (Local, City, Region, SMSA), with trend analysis. 1-Population of area: a) Gender and age distribution: Hard Rock Café usually attracts certain age and gender frame (young and middle age adults, and men more than women) b) Population density: when it is high in the location being researched that increases the probability of getting a high costumer flow or vice versa. c) Population Growth: if statistics shows a positive increasing rate in the location being researched that will raise the costumer flow or vice versa. 2-Economic Indicators: a) Gross Domestic Product (GDP): it is less risky to invest in a country with a high GDP.
According to Borjas, high skilled immigrants tend to adapt more rapidly to conditions at the destination country. On the other hand, if immigrants are lacking these skills they will confront difficulties in adaption process and consequently increasing the costs the government/immigrant invests. Immigrants most important capital focuses on the acquisition of the host country's" language capital", Borjas outlined this, when he argued that immigrants with proficiency in English were having higher earnings than immigrants without "language capital" in the U.S.A. Moreover, Borjas presented the Chiswick's regression model, to demonstrate how high skilled migrants develop and improve their skills after arriving at the destination country, in this model the human capital investment hypothesis can be interpreted by a selection argument, which corroborate that immigrants are substantially more motivated than natives and additionally immigrants are ready to take risks working harder and longer than natives, having with this a better economic integration in the host country (Borjas, George, 1994: 1667-1717). Moreover Chiswick's study goes more dipper on the selectivity and the human capital migration model, in which he studies how choices and opportunities people have, and how these
Investment projects, via the multiplier effect should result in an increase in the GDP of the economy; However in order to undertake investment, there must a high savings ratio must be obtained as it is essential for the accumulation of capital. Labour plays a critical role in achieving economic growth. The higher the number of workers there is in an economy should lead to economic growth. If there are more people working and unemployment levels are relatively low, then there is likely to be the achievement of economic growth as human resources
If exports were to increase this would result in an increase in AD, as the balance of payment is a factor. The subsequent result of this increase in AD would mean an increase in supply, leading to an increase in the rate of employment, as firms are forced to take on more workers in order to fulfil demand. This means that the increase in exports would reduce specifically cyclical unemployment ( demand deficient unemployment). This is because the increase in exports would result in a increase in AD, hence curing the deficient demand. Furthermore, the cost of the formerly unemployed, i.e.
Due to businesses like these integrating vertically big businesses were made easier to grow. By 1913, 14.7% was what the US produced units relative to the world in 1880 became 32%. Another point is the fact that through the work of Carnegie, steel has become a major product of the US, this increased the steel production thus providing lots of employment. This results in a massive growth in the economy . Due to big businesses like one of Carnegie’s, small companies which were less profitable were ruined, this resulted in the economy benefiting from monopolies.
Even though raising the minimum wage may benefit people, it will hurt more. Cons to keeping minimum wage the same- Economic Stimulus: Raising the minimum wage means minimum wage workers have more money to spend which means more money goes throughout the economy. More opportunity for jobs: If these minimum wage employees are spending more, than businesses are earning more and need to hire more employees to keep up with the increased sales from the minimum wage employees who are buying more. Reduced Expense for Social Programs: People surviving at minimum
Even though union members—those who keep their jobs--- get their wages increased and enjoy improved working conditions and benefits, the economic issues that most unions brings to the United States outbalance the positive effects. As the United States competes with the rest of the world, firms struggle when one of their highest costs is directly related to labor. In the article Labor Unions by Morgan Reynolds, the author accurately explains this phenomenon: while higher wages are successfully achieved, they simultaneously reduce the number of jobs available in unionized firms. This occurs because of the basic law of demand: once prices of labor rise, then employers will purchase less of it. Hence such members’ benefits are achieved at the expense of consumers, nonunion workers, already unemployed people, taxpayers, and corporation owners (Reynolds,