If we do not buy imported goods then they will not buy ours and without export revenue and foreign investments we would not be able to function financially. When exports increase so does the Gross Domestic Product (GDP). GDP is the dollar amount of all goods and services produced within the United States. When the GDP is high it signifies that our economy is healthy and stable. When companies can produce more due to demand they are able to hire more workers, which can lower the unemployment rate.
If the interest rate is low, it will cause more funds to be available, greater expansion and increased employment. If the interest rate is high, it will cause fewer funds to be available, less expansion, and decreased employment. Fiscal policy is an important tool for managing the economy because of its ability to affect the total amount of output produced or the gross domestic product. The first impact of a fiscal expansion is to raise the demand for goods and services. This greater demand leads to increases in both output and prices.
A firm’s value depends on the positive net income generated in the past. True False A firm’s value depends on the firm’s ability to generate positive cash flows now and in the future True False When determining the value of a firm, which of the following statements is true? • Inversters are risk neutral. Other things equal they prefer to pay more stocks that are less risky and have uncertain cash flows • Investers love risk. Other things equal they prefer to pay more for stocks that are more risky and have uncertain cash flows.
Complete the quiz on the assigned readings for the week. Internal Competencies. In planning, one component to explore is how an entrepreneurial organization’s internal competencies help to achieve a strategic advantage in the marketplace. In a 250-300 word response, answer the following: What steps/actions would an entrepreneur take to determine whether the entrepreneurial venture has the appropriate internal competencies to achieve competitive advantage? Respond to at least two of your classmates’ postings.
There is considerable evidence that getting the correct operating conditions is more important than the choice between MRP, kanban, or reorder point methods in the MPC system. How general do you believe this situation to be? Submit your assignment to the Dropbox located on the silver tab at the top of this page. For instructions on how to use the Dropbox, read these step-by-step instructions or watch this Dropbox Tutorial. See the Syllabus "Due Dates for Assignments & Exams" for due date information.
An increase in wages will increase the average variable cost. The more people required to produce additional units of output will be more expensive due to an increase in wages. A lower material cost will result in a lower average variable cost because more units can produced at a lower cost. If the firm produces the same amount of units the cost will fall. The fixed tax will not change the average variable cost.
et powerECO204: Homework Assignment 3 1. True, False, Uncertain a. A firm that enjoys economic rents earns higher economic profits than other firms without the economic rents. b. Relative to the perfectly competitive equilibrium, the equilibrium outcome for a market dominated by a monopsonist will be higher prices and lower levels of good demanded.
However, pensioners will be hit hard because the extra income they earn from saving will have dramatically reduced, making them worse off. On the other hand, savers may leave the pound for better interest rates in other countries (hot money), causing a fall in the demand for the pound. As a result the value of the pound will fall, making exports cheaper and there will be an injection of net exports. In conclusion, the impact of loose monetary policy will be beneficial to the economy because extra consumption and investment will cause AD to increase which will increase economic growth. However, it takes a long time for changes in interest rates to feed through to consumption and investment and by then the economy may have gotten worse.
Include a minimum of one APA citation from a scholarly resource. Your initial post must contain a minimum of 250-300 words. Respond to two of your classmates’ postings. ABS 415 Week 2 Assignment Case Analysis Sycamore Pharmaceuticals Case Analysis: Sycamore Pharmaceuticals Read the case analysis: Sycamore Pharmaceuticals on page 189-190. Write a two- to three- page paper (excluding title and reference pages) that addresses the following questions.
Managing aggregate demand(eg) can be self-financing because when the increase in aggregate demand causes an increase in employment, it means that fewer people would be on unemployment benefits. Therefore, the government has less government expenditure and because more people are employed, the government can collect taxes from more people. However, in order to finance government expenditure the government may also need to increase borrowing and in order to achieve this, the government may have to raise interest rates. This may mean that as a policy, managing aggregate demand may not be self-financing. Managing aggregate demand reduces some types of employment more than others.