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Our economy thrives on competition. Market forces will lead firms to produce the mix of goods most desired. Unforeseen events can be responded to in a rational manner. The constant struggle for profits will stimulate firms to cut costs. Note that technical efficiency results from attention to self-interest, not the public interest. However, in a market economy business must cater to the whims of consumer tastes or else go out of business.
Explain the importance of the following concepts:
1. Competition2. Adequate information by all parties in the economy3. The role of prices in a market economy
Jermaine has a health insurance policy that has a deductible of $1,000, a $10 copayment on doctor visits, and coinsurance of 10% on all expenses other than those for which there are copayments.
Illustrate what is the logic of a firm setting and exercising the application of a mandatory retirement age? What are the pros and cons of the mandatory retirement practice from the perspective.
How many cases of peaches will be produced per week during the growing season, and what will the selling price per case be if producers ignore the marginal external costs imposed on others?
Social Dynamo Corporation earned profits last year of $49 million on sales of $500 million. During the same period, its major competitor - EIO Corp.- enjoyed sales of $490 million and earned profits of $52 million.
Explicidate key macroeconomic variables which affect your industry.
Explain how did the economic policies of developed countries after the second world war differ from their policies after the first world war? the "policies referred to here are those which most directly affect international trade.
Find the overall change in the economy's money supply if, when the reserve ratio is 5%, the Federal Reserve System buys $250 million of US government bonds from the banking system. What would have been the change if several billionaires deposited ..
Explain why fiscal policy will be either more or less effective in an economy with a large foreign sector.
Elucidate the percentage rate of Full Employment and Inflation that that these two organizations try to keep as its target.
Which one shirts or sweaters, has a demand-elasticity which allow you to increase the price, sell fewer units BUT still increase your revenues.
Elucidate how globalization affects the gross domestic product (GDP). Explain your thoughts on globalization in your own words.
Credit cards are sometimes discussed as a public problem. In 2001, purchases on credit cards accounted for 21% of consumer spending in America, which has the lowest savings rate of any big country.
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