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.
The illustration of how unattractive this new financial situation would be hard to measure and speculation of losing their financial standing would move the Opera against the merger. To solidify the lack of desirability of the merger, Mr. Bailey could use the opinions of outside skeptics that have spoken against Mrs. Ewer. These skeptics believe that Ewer would not be up to the task and the economic gains that are anticipated would not happen. These skeptics believe that the differences in the Opera and the Symphony would not make a good business model. A2.
How does Adam Smith's concept of the invisible hand explain why markets move toward equilibrium? Do market participants need to know about the invisible hand for it to function? Explain your answer. Answer: Adam Smith’s concept of the invisible hand explains why markets move toward equilibrium because it allows consumers to freely choose what to buy and producers to choose freely what to sell and ultimately how to product it. It is important for market participants to know how the invisible hand functions so they can all benefit by understanding how self-interest regulates the markets supply and demand.
Allocating cost this way would not be accurate since DOP could not see the improvement in cost control from electronic order and desktop delivery. The company should use the ABC approach which is recognized costs by their activities and drivers for its pricing system. The cost drivers are used as bases to allocate costs to the product and thus would reflect more accurate product costs than using traditional cost pricing system. Table 1.1 Dakota Office Products: Income Statement CY2000 Sales | $42,500,000 | | 121.4% | ($42,500,000/$35,000,000) | Cost of items purchased | $35,000,000 | | 100.0% | ($35,500,000/$35,000,000) | Gross margin | $7,500,000 | | 21.4% | ($7,500,000/$35,000,000) | Warehouse personnel expense | $2,400,000 | | 6.9% | ($2,400,000/$35,000,000) | Warehouse
Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them? Which theory is more appropriate for the economy today? Why? With classical economists believe that people supply things to the economy so they have income to demand things of value they supplied.
It is well known that whether a product is profitable or not depends directly on the demand and supply relationship in the districts. Since the author fails to account for the demand situation of healthy food in P, it is entirely possible that the demand of healthy food in P is not large enough for a new store. The current demand might be well met by other sources already, instead of a new store. For that matter, a new store would be surplus in P. In addition, even assuming the demand and supply relationship is broken since more healthy food is needed, there is no evidence that Natural’s Way would be P’s choice. The author fails to take other opponents of Natural’s Way into consideration.
“The net export effect of expansionary monetary policy will be in the same direction as the monetary policy effect”.1 Recommended Course of Action Although both fiscal policy and monetary policy prove to have beneficial effects on an economy during a contractionary period, we believe that the government should use a combination of both policies…… - The money supply may be ineffective, but in the end people want to make sure that they will have money to save up in case of emergencies. There is no change in investment spending meaning little change in aggregate demand. - Further to this, the fiscal policy may be ineffective, as the extensive “time lags” may dig us deeper, creating a depression. - To what extent?? ?
ASSIGNMENT 1 CHAPTER 1 – Limits, Alternative and Choices 1. Economics may best be defined as the: A. interaction between macro and micro considerations. B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. C. empirical testing of value judgments through the use of logic. D. use of policy to refute facts and hypotheses.
White in Why the Gasoline Engine isn’t going away anytime soon; argue in a perspective that these issues are viewed at by society wrong. Although society presents energy independence as a must, Bryce explains how it is not desirable to become energy independent nor is it even possible. White explains that the gasoline engine is far from its last day. These two experts argue that the ignorance of society is keeping the reality of these issues absent. Bryce and White also touch on how the cost of these issues will keep them from succeeding anytime soon.
Importance: Why raising the minimum wages is a bad proposal, because it doesn’t fix the problem of poverty. IV. Thesis. Congress should not raise the minimum wage. V. Preview.