These prospectors needed picks, axes and other supplies to mine for gold. Those who were in the business of selling supplies to these prospectors faired better during the gold rush then the prospectors did. The demand for picks and axes was derived, to a large degree, from the demand for gold at that time. The key is the change in the price of the final product brought about by the shift in demand for it. If the demand curve for picks and axes shifts to the right and the upwardly sloping supply curve remains unchanged, then the equilibrium price and quantity in the picks and axes market will
Real World Case 12-6 Corporations frequently invest in securities issued by other corporations. Some investments are acquired to secure a favorable business relationship with another company. On the other hand, others are intended only to earn an investment return from the dividends or interest the securities pay or from increases in the market prices of the securities—the same motivations that might cause you to invest in stocks, bonds, or other securities. This diversity in investment objectives means no single accounting method is adequate to report every investment. Merck & Co., Inc., invests in securities of other companies.
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
1). The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will: • Exceed the marginal cost of diamonds but equal to the average total cost of diamonds. • Exceed both the marginal cost and the average total cost of diamonds. • Be equal to the marginal cost of diamonds.
Copper, lead and zinc were a few of the new metals that were being mined to provide raw materials for manufacturers. Brinkley (2007) states “such efforts proved more profitable in the long run that the usually short-lived gold and silver extraction. “ Brinkley, A. (2007). American History: A Survey, Twelfth Edition.
People began flocking to California when they started hearing stories about the gold rush, dreams of making it rich, gold lying around just waiting for you to grab it. The gold rush began when james w. marshall found some at sutter mill in Coloma californai. He probably shouldn’t have told anybody because after he did about 300,000 people showed up looking for gold, good for making cities out west but bad for james. The effects of the Gold Rush were substantial. San Francisco grew from a small settlement of about 200 residents in 1846 to a boomtown of about 36,000 by 1852.
When the government prevents prices from adjusting naturally to supply and demand, efficiency is improved in the economy. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxviii]. A market economy cannot possibly produce a socially desirable outcome because individuals are motivated by their own selfish interests. ANSWER: F TYPE: T KEY1: D SECTION: 2 OBJECTIVE: 7 RANDOM: Y [cxix]. While the invisible hand cannot guarantee efficiency, it is better at guaranteeing equity.
Together, Bryan and the farmer’s alliance brought in some good ideas. The farmers were hardly getting any money for all they did so, the Alliance came up with an idea to help with inflation, bring in more crop shares, lower their debt, and income taxes which would help hold down the American economy. The book mentions silver to gold ratio 16:1, for an unlimited amount of coinage and creates more surplus. The silver was their uprising and their downfall. The Alliance hadn’t had much political power, except for the Sherman Silver Act which replaced the gold as the primary coinage in the United States.
Considering the uncertainties in parameters like Gold price, width, length, depth of mine, grade of gold and probability of success of building a road and diamond drilling, I would suggest the owner of the mine to not to go ahead with the project. Taking historical data and owners instincts into picture, there are only 10 percent chances that he will make any profits out of the project. 90 percent chances are there that he will be in negative returns. Detailed Analysis: Gold Price: Looking at the historical data, I didn’t find any pattern in the price of gold over the years. So I simulated the price of next year by randomly selecting price of gold from the data for 10 years.
The California Gold rush evoked adventurers in search of instant wealth. It all started at Sutter’s Mill by James Marshall on January 24, 1848. But it is said that it was not the first discovery of gold in California. The first actual documented discovery of gold in California was said to happen 6 years earlier in the hill about thirty miles northwest of Los Angeles. The discovery of gold sparked mass hysteria as thousands of immigrants from around the world over took what would soon be called the Gold Country of California.