International Trade ECO 372 University of Phoenix There are many contributing factors to the stabilization and prosperity of our global market. We, the United States, are living in a time of severe trade deficit, meaning that we are importing many more goods than we are exporting. While it is nice to be able to buy foreign products at a lower price, there is risk in doing so. When we purchase foreign goods over domestic at lower prices it forces our domestic companies to sell their goods at lower prices to remain competitive. These lower prices may lend to making enough profit to sustain the current workforce.
ECO 561 Final Exam 1) Suppose that in the clothing market, production costs have fallen, but the equilibrium price and quantity purchased have both increased. Based on this information you can conclude that A. the supply of clothing has grown faster than the demand for clothing B. demand for clothing has grown faster than the supply of clothing C. the supply of and demand for clothing have grown by the same proportion D. there is no way to determine what has happened to supply and demand with this information 2) Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5, both are running out of beads to sell (they can't keep up with the quantity demanded at that price), then we would expect both Camille's and Julia's to: A. raise their price and reduce their quantity supplied B. raise their price and increase their quantity supplied C. lower their price and reduce their quantity supplied D. lower their price and increase their quantity supplied 3) In which of the following industries are economies of scale exhausted at relatively low levels of output? A. Aircraft production B.
If the price of both black and white and colour televisions falls, consumers buy more of each of them. Yet if consumers’ incomes rise, they buy fewer black and white televisions and more colour televisions. Show why these differences arise between these two types of goods. The ‘law of demand’ states that as the price of a good increases, demand for the same good falls , resulting in a downward sloping demand curve. This indicates an inverse relationship between price and quantity demanded as long as all other factors remain constant.
Foreign goods are more expensive, but more Americans are working. ---- According to Economist Paul Krugman wrote in May 2011: "First, what's driving the turnaround in our manufacturing trade? The main answer is that the U.S. dollar has fallen against other currencies, helping give U.S.-based manufacturing a cost advantage. A weaker dollar, it turns out, was just what U.S. industry needed. Solutions 1.0 Tax policy By reducing tax may encourage consumers to spend and employers to expand their business and add jobs.
Based on the book when there are competitive markets such as airlines, a company certainly needs to look at costs and revenue very closely. (Brickley, Smith, & Zimmerman, 2009, p. 180) In this case I believe that the flights from San Francisco t Washington DC should be discontinued. Even though United Airlines is a large company and profitable if they continue these flights in the long run they will lose money. The other option that they would have would be to increase the fares to cover those costs, but since the airline industry is a competitive market people are more likely to go with a lower cost airline. The first thing the airline must do is look at the firm supply.
These facts are best explained by: • Economies of scope • Diseconomies of scale • Diminishing marginal productivity • Economies of scale To download the complete answer check ECO 365 Week 1 knowledge check 3). Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that: • despite the increase in price, quantity demanded rose due to some other factors changing. • the demand for a college education is positively sloped. • the law of demand is invalid.
A complete financial analysis of La Paloma reveals a different picture than one of growth and strength, especially in the area of inventory costs, inventory turnover, and collection periods. One of the key areas that cause profits to grow at a slower rate than revenue is the operating expenses, specifically wages. Before La Paloma entertains the idea of expansion into another area of the city, it is highly recommended that the owners lower inventory costs; increase the turnover of existing inventory; decrease the collection period of credit sales, or eliminate credit sales altogether; and decrease the cost
These facts are best explained by: • Economies of scope • Diseconomies of scale • Diminishing marginal productivity • Economies of scale Find the final exam answers here ECO 365 Final Exam 3). Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that: • despite the increase in price, quantity demanded rose due to some other factors changing. • the demand for a college education is positively sloped. • the law of demand is invalid.
These facts are best explained by: • Economies of scope • Diseconomies of scale • Diminishing marginal productivity • Economies of scale Find the final exam answers here ECO 365 Final Exam 3). Suppose that college tuition is higher this year than last and that more students are enrolled in college this year than last year. Based on this information, we can best conclude that: • despite the increase in price, quantity demanded rose due to some other factors changing. • the demand for a college education is positively sloped. • the law of demand is invalid.
Small businesses actually rely on low-income families to spend money on goods to increase business sales. Raising the minimum wage “would allow people to afford basic necessities and decrease the pressure on taxpayers” (Sklar). There are those who believe increasing the minimum wage “will only speed up the pink slips and prolong [low-income workers] unemployment” (Norwood). Since the latest increase in the minimum wage in 2009, unemployment has yet to have dramatically increase nor decrease significantly. This type of result would only occur if the minimum wage was increased by a tremendous amount.