Economics

Macro economics is the study of the aggregate economic performance of an economy whereas micro economy focuses on the individuals and studies their economic decisions (Investopedia). It is clear that macro economy has more number of variables and hence it is more complex as compared to the microeconomics. The most important indicators of macro economy are the Gross Domestic Product (GDP), unemployment and inflation (Investopedia). GDP is the accumulated market worth of finished goods and services...

Q1. Discuss the difference between profit maximization and shareholder wealth maximization. Which of these is a more comprehensive statement of a companys economic objectives In technical terms, Shareholder wealth can be calculated by multiplying a firms total number of shares outstanding with the price of the particular firms stock trading in the market, hence, it is the market value of the firms stock. On the other hand, profit maximization is primarily a more stationary concept in the sense that...

Scarcity and opportunity cost are the economic decisions that are very crucial in any entity. Scarcity is defined as a situation when people inside the economy would demand or need more than what is available in the environment or economy as a whole. Economics always assume that people will always have unlimited wants. However, resources are not enough to respond to what people demands. Scarcity, in essence, is the reason for being of economics. Economics studies how these resources will be distributed...

The research question examined was  Is employee s annual wage influenced by their years of education  The hypotheses tested were H0   0 (Annual wage is not influenced by years of education.) H1   0 (Annual wage is influenced by years of education.) The selected level of significance,  is 0.5. The selected test is hypothesis test for zero slope. Table 1 shows the data for employees annual wage and years of education. Both years of education and annual wage are interval...

A few decades ago, the developing countries were producing primary products more than the manufactured products. A new trend has been observed that indicates an increase in production of manufactured products. The effects of globalization can be said to have resulted in this phenomenon along other causes. Developing countries are exporting more manufactured products than primary products today. Globalization has caused the rapid technological progress in the world. New technologies have been researched...

Markets theory has been in existence for centuries and is basically concerned with the determination of outputs and prices of services and goods as well as the usage and prices of factors employed in production of various services and goods. This theory illustrates the different structures of the market and market strategies that exist in an economy. There are basically two chief markets, these are monopoly and competition. The dispute of which of the two markets is better than the other is one...