Economics

Economics is the study of how individuals and groups allocate their limited or scarce resources to best satisfy their wants, needs and desires or simply put their demands. Scarcity refers to the tension between our limited resources and our unlimited demands. The study of economics revolves upon the principle the higher the need, the higher the demand. Comparative advantage is a situationin whicha country, individual, company or region can produce a good at a lower opportunity cost than a competitor....

Q1) Output (Q)FCVCTCAVCAFCATCMC010001000---11003013030100130302100501502550752031006516521.6733.335515410010020025255035510015025030205050610023033038.3316.675580710032042045.7114.286090 Q2) a) WorkersCaps (Q)Labor Cost ()Material Cost ()Variable Cost ()Total Revenue ()Marginal Cost of Caps ()14561685622428011560180602403001 b) It is sensible to operate at a loss with 14 workers because the price is greater than the average variable cost and the firm is minimizing losses because it is covering...

1. Fed uses different techniques such as the required reserve ratio, open market operation and discount rate in order to control and shrink the supply of money. REQUIRED RESERVE RATIO Fed makes an impression on the supply of money by made changes in the required reserve ratio. One should know the fact that financial institutions hold certain percentage of all deposits on reserve. This move shrinks and reduces the amount through this banks expands the supply of money in the market. OPEN MARKET...

YEAR QUANTITY PRICECDtennis racquetCD pricetennis racquet price 2005 9018 018100 2006 10019 020110 Calculate real GDP for 2005 and 2006 using 2005 prices. By what percent did real GDP grow REAL GDP (9018)  (180100)  19620 (10018)  (190100)  20800 Growth of real GDP  20800-19620  19620 100  6 Calculate the value of the price index for GDP for 2006 using 2005 as the base year. By what percent did prices increase Price Index 2006  2080019620100  110.1 Growth...

Intense competition yields to regulation changes in the airline industry. Most regulations improve and increase the profit margin in the industry, for example, primary regulatory insures that, every airline should operate on a more public interest.  According to the safety standards and procedures, the introduction of deregulation has brought an increase of growth in the airline industry. Some of the countries, which have less effect in deregulation of competitors, face increase in competition...

A straightforward connection of the US economy and some economic principles that may help aid the downturn of the US Economy, this paper hopes to give justice on some principles that the government may lessen or increase use. In any decision that involves two or more options, a person deals with an opportunity cost. Often times the cost or value of a given good or service is considered of in monetary terms. Opportunity cost in a particular decision is rooted on what must be given up as a consequence...

Europes Banks Tighten Credit, Frustrate ECB, written by Brian Blackstone and Nina Koeppen at The Wall Street Journal, primarily sheds light upon the prolonged after effects of the recent global financial crisis that has crippled economic growth across various regions. Stock markets across the world dipped sharply, well-established financial institutions either went bankrupt or were sold off while even the most richest and wealthiest of nations were forced to formulate aid packages to help stabilize...

Federal Reserve System exerts significant influence on the money supply and undertakes steps to alter it as and when an economic need for the same arises. To affect money supply, Federal Reserve System has three tools at its disposals. These tools can help a rapidly growing economy stabilize and also facilitate recovery from economic recessions. This paper describes the three tools used by the Fed to influence money supply. It then examines the modifications Fed would make to the three rules when...