Alternatively, the Government could introduce a free market supply side policy such as reducing the power of trades unions. If unions are powerful, productivity may be lower due to frequent strikes and disruptive working practises such as working to rule. If union power is reduced it helps reduce time lost to strikes, increases labour market flexibility and therefore should help increase UK exports. A third supply side policy could be increasing labour mobility. The nature of the UK housing market means that it is often difficult for workers to move to areas where jobs are available.
Stock is up by +115% on last year, but a 20% rise in sales due to new machinery speeding up production is expected and planned for. The high levels of finished stock need to be available for immediate delivery with a +7 rise in orders on last year. Maintenance and cleaning is up by +135% on last year, with the increase in large machinery, this will be an expense that will have to factored in to ensure smooth production. Overall net profit is down, but machinery is a long term investment and will decrease in expense and generate profit in the next few years. Question 2 (A) The balance sheet will indicate the financial position of a business at any one point of time.
Fiscal Policy Joshua Canfield, Haeli Abeytia, Nancy Garcia ECO 372 May 1, 2014 Scott Cain Fiscal Policy As time progresses the economy is always changing and evolving. Fiscal Policies are one of the major factors that determine the overall stability of the economy. In order to maintain stability of the global economy the governments need to be involved and aware of the markets and the changes in the global economy. Government programs like medical benefits, social security, and even taxpayers are all effected on decisions the government makes so it is vital that the state of our government is stable to keep our economy in good conditions. In order to understand the effects of taxpayers, unemployment, and individuals on social security and Medicare we need to understand what deficit, surplus, and debt is.
Proponents of the notion of a "political business cycle" suggest that: A. The standardized budget is a better indicator of the state of the economy than the actual budget B. Cyclical swings in the economy are produced by the inherent instability found in capitalist economies C. A possible cause of economic fluctuations is due to the use of fiscal policy for political purposes D. There is a tradeoff among goals that tends to make the economic policies of state and local governments procyclical 19. One of the timing problems with fiscal policy is an "operational lag" that occurs between the: A. Beginning of a recession and the time that it is recognized that the event is occurring B.
Fiscal Policy Simulation The fiscal policy can be referred to the manner in which a government attempts to influence the economic status of their country by making changes in their spending. In the simulation we can observe how to make changes in the fiscal policy by affecting the areas of: taxes, education, and infrastructure; and what would the outcome of such changes would be in the country of, Erehwon, as a newly elected President of the country. The effects of the simulation where: changes in popularity, has a new president it is important to keep the popularity of the voters in order to be re-elected; unemployment rates, which contribute to recession problems in the future; and inflation, which also contribute to recession problems.
Recovery was about putting temporary programs to start the flow of consumer demands back up. Lastly, Reform was about placing permanent programs that would keep the country from falling into a depression again and protect people against economic disaster. The plan was to create different agencies that would give people jobs and have people put money back into the economy. The New Deal would create programs such as the Public Works Administration (PWA) and the Federal Deposit Insurance Corporation (FDIC) which would handle Relief, Recovery, and Reform properly and get the economy back up.
Given this success, Target Corporation could rest on its laurels and pat itself on the back, however to continue to be effective, employee input and ongoing practice revisions by management are necessary. Target Corporation Outsourcing: Challenges and Opportunities Off-Shoring vs. Outsourcing In order to remain competitive in today’s volatile economic environment, many companies are looking for ways to cut costs. One major new step has been the growing industry trend of outsourcing work to countries where wages are less expensive and expected benefits are less financially based. There is a huge difference between outsourcing and off-shoring however, and this difference needs to be understood in order to effectively discuss the ramifications and benefits specific to outsourcing. Off-shoring refers to the expansion of a company into a foreign market, be it for goods or services.
The company should explore ways to reduce its need for working capital financing. They should see if there are ways of improving their supply chain efficiency and forecasting so that they can reduce their inventory levels. They should look to negotiate with suppliers to reduce the rate they are paying for inventory. Pacific Grove should also see if they can extend the length of their accounts payable. Even if they have to pay a slight price premium, if the rate (APR) is less than what the banks are charging them in interest, it could help to both save money and reduce their capital needs.
Furthermore, a cut in taxes depends on It depends on other components of AD. For example, if confidence is low, cutting taxes may not increase consumer spending because people prefer to save. Moreover, if the economy is close to full capacity an increase in AD will only cause inflation. Expansionary fiscal policy will only reduce unemployment if there is an output gap. Supply side policies include any action by the government intended to increase the amount that firms are willing to supply at any given price level in which they seek to shift the aggregate supply curve to the right.
The cost to the government and the taxpayer of keeping the business’ running and making sure they efficiently pursue their desired function can have high opportunity costs.This is especially prominent in a time of recession/economic downturn when the money could be spent in other ways to increase growth the economy,such as macroeconomic policies including fiscal and monetary policy. On the other hand public ownership does have some positives. The main benefit is that of public interest, this includes the fact that the business is not there to operate for profit, it is there to serve the consumers. This point could also be tied in with the fact that any profit made by the business’ if government owned will go back into society. This is obviously beneficial if the business’ are making profit, but it could be argued that a business should not be making profit, but instead charging lower prices to consumers initially.