(f) Shift right. 53 ( Explain the process by which the price of houses would rise if there were a shortage. People with houses to sell would ask a higher price than previous sellers of similar houses (probably with the advice of a real estate agent). Potential purchasers would be prepared to pay a higher price than previously in order to obtain the type of house they
To assess the reasonableness of large changes in these three accruals, we need to gain some additional insight into changes in the commodity prices for corn and soybeans. o Go to http://www.fao.org/es/ESC/en/index.html
This benefit will be evident in the distant future as the unsustainable growth in federal debt would be reined in. The federal debt is currently more than 70 percent of GDP and is growing at a pace higher than GDP (Page & Reichling, 2012). Without current sequestration or a similar solution, the United States would become insolvent much sooner. According to a nonpartisan economic study, removing fiscal tightening like sequestration would boost output and employment in the short term. Conversely, the United States’ output and employment would suffer and lead to larger increases in interest rates over the long term (Page & Reichling, 2012).
Decreasing the interest rate effectively increases consumer and businesses consumption. Lower interest rates also increase investments and net exports (Hubbard, 868). These increases push true GDP back in line with potential GDP and, as a result, production increases. This increase in production also increases the need for workers, ultimately increasing employment. Conclusion The Federal Reserve is a very powerful entity and has a large amount of influence on how our nation’s economy performs.
This difference will cause the market price to increase or decrease when necessary until the quantities are the same. Microeconomics and Macroeconomics
A merger would best be used in this situation since it will help lower his taxable income and he can improve his operations and competitiveness. If he feels that the investment in new manufacturing equipment will help increase profits and can take on the extra liability, then he should buy Smithon. His debt –to-equity ratio will rise and may cause him to have a hard time getting money to finance his company. But with a two year loss he is keeping his taxable income down and may be able to show investors that things are going to turn around when all operations are working together and
To save any money it would be better to manufacture than buy. 2. The accountant decided to investigate the fixed costs to determine whether any incremental changes would occur if the subassembly were no longer manufactured. The accountant believes that Yoklic will eliminate $50,000 of fixed overhead if it accepts the proposal. Does this new information change the decision?
Boom Economic Environment | The influence of this economic environment on business activities within a selected organisation | During boom the demand for the products gets high very rapidly. There is high level of demand because people have more money to spend as more people are in employment. During boom consumer demand for more so the business and suppliers cannot satisfy the needs and this leads to increase in price which called Inflation. As the price rise, people are willing to pay higher prices because they have more money to spend. During boom business gets confidence because more people are demanding for their products and this rise in production.
The industry’s growth potential is large considering that customers are very likely to be enticed by the offer of saving 30 to 40% of what they would normally pay by making individual travel plans. The lower price to consumers therefore provides a source of competitive advantage when comparing group traveling versus the conventional way of booking travel plans. However, when comparing TTG to other group-traveling companies, whether existing or potential new entrants, we find it will be very difficult to maintain competitive advantage because the service provided is easy to imitate or even to improve by well established indirect competitors such as nation-wide travel agencies who can take advantage of their existing platform to include group-travel in their portfolio of services. For the same reasons, achieving value added potential through differentiation and long-term sustainability are estimated to be low for TTG. The profit margins, as projected by the financial statements, seem low (approximately 11 % per passenger not including overhead costs).
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