| 05 | 06 | 07 | EBITDA Margin | 8.6% | 15.6% | 9.7% | 5. What method to valuate inventories (FIFO, average weighting cost, LIFO…) has been used? The increase in purchases is of 44% and 22% in 06 and 07 respectively. As to the sales the increase was of 34% and 18%. We can conclude that they use FIFO because the inventory amount increases through 06 in 65% and then decreases in 07 by -13%.
Gloria Deal GB540-04: Economics for Global Decision Makers Unit 1 Assignment Timothy Terrell September 11, 2012 Problem #1:Using either a graph or table (Refer to page 22 for help with graphs and tables) use two goods to construct a production possibilities curve. Clearly explain what a variety of different points on the curve mean. What would make the curve expand or contract? Why is efficiency lost at the extremes, as when substantially more of one good and very little of another is produced? Type of Production | Production Alternatives | | A | B | C | D | E | Trucks | 0 | 2 | 4 | 6 | 8 | Cars | 30 | 27 | 21 | 12 | 0 | There would be 4.5 cars; .33 trucks, as determined from the table.
C) the natural rate of unemployment will decrease. D) the natural rate of unemployment will increase. Answer: ___ Page 1 of 14 3) For this question, assume that the Phillips curve equation is represented by the following equation: πt - πt-1 = (μ + z) - αut. Given this information, the natural rate of unemployment will be equal to: A) μ + z B) α(μ + z) C) (μ + z)/α D) (μ + z - α) E) 0 Answer: ___ 4)
From 1927-1929 harvests fell, simultaneously affecting the wider economy. The government needed to sell grain abroad so they could receive the foreign currency necessary for resources needed for industrialisation. Collectivisation was therefore introduced to increase efficiency and introduce mechanisation. This added urgency to a need to increase output meant that high targets were set which were met with incentives and also punishments, pushing the economy towards its maximum potential making the essential contribution to the transformation of the Russian economy. By 1940, 99% of land was collectivised.
City University London Intermediate Macroeconomics 1 Coursework Joe Pearlman Question 1: Consider a representative agent with a utility function: U (C, l) = C 1/2 + l1/2 that he or she maximises subject to a constraint: C = w (h − l) − T + π where w, h, l, C, T , and π are wages and hours of time available, leisure, consumption, taxes, and dividend income. The production function for this economy is linear so that in equilibrium w = z, and the Production Possibilities Frontier is C = z (h − l) − G . To make the calculations easier assume h=1, z = 1. a) Find the Marginal Rate of Substitution. (4 marks) b) Find the Marginal Rate of Transformation. (4 marks) c) Setting MRS=MRT, solve the resulting equation algebraically for l as a function of G. (6 marks) d) What happens to consumption, wages and output as G increases?
The long run average cost curve is explained by the economies of scale, and diseconomies of scale. It explains why LRAC goes down, and then goes up.As production increases, there are two basic influences at work: Economies of scale, and Diminishing marginal returns.Economies of scale cause average cost to decrease as production increases.Diminishing marginal returns causes average cost to increase as production increases. If Economies of scale outweighs diminishing marginal returns at low volumes, and eventually diminishing marginal returns outweighs economies of scale at high volumes the curve will be a U shape. A typical average cost curve will have a U-shape, because fixed costs are all incurred before any production takes place and marginal costs are typically increasing, because of diminishing marginal productivity.There is an indication of economies of scale if marginal costs are below average costs and average costs decreasing as quantity increase. An increasing marginal cost curve will intersect a U-shaped average cost curve at its minimum, after which point the average cost curve begins to slope upward.
Low unemployment rate and low inflation rate. b. Low unemployment and price stability. c. Low unemployment rate and high economic growth rate. d. Low inflation rate and high economic growth rate.
Question 3 Which price increase is needed to offset the profit impact of the increased raw material costs (assuming that volumes are constant)? Which price decrease will result from instituting price-flex (assume a best case and a worst case)? Answer 3 The selling price would increase by offsetting the raw material cost which is given in the “Appendix A” which shows that increase in the price by 6.5% would result in the positive side and a reductioncompany from reduction in the price. Understanding all this is done with respect to the case material. The volume is a constant which is assumed at 80% in the analysis of the price.
The LM Curve will see a shift to the left and decrease the value of "Y" if the IR is higher than the ER of the market. The GDP is increasing in value and there will be an increase of savings.. If the IR was below the equilibrium, the opposite of the previously stated would occur. The LM Curve would see a shift to the right, therefore increasing the value of "Y". The GDP value would then decrease, due to the move from Point A to C, and increase employment which would decrease savings.
According to the calculated ratios in Table-1, SSB had the following major trends in profitability during the time of 1991 to 1993: Decreasing return on equity (ROE) – shareholder return Gradual & unsteadily decreasing return on assets (ROA) – managerial efficiency Decreasing net non interest margin ? less profit earned on non-interest banking components Increasing earnings spread ? have established effective processes of borrowing and lending money with little immediate threat of competitors Unfavorably increasing operating efficiency ratio – there is an excess of operating cost in relation to operating revenues generated by SSB. Declining credit risk/depositor risk ? decline of bad loans, increased market values of good loans relative to amount of deposits.