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Q1. Pick one important business decision and discuss why knowledge of the state of the economy using macroeconomic indicators should improve decision-making. Make sure you specify which decision process you are analyzing, for example, the decision to buy additional equipment to increase production.
In your discussion, make sure you indicate (1) what data the organization needs in order to make good decisions and (2) how the use of macroeconomic indicators enables organizations to improve their forecasts of the key decision-making data.
Q2. If Starbucks's marketing department estimates the income elasticity of demand for its coffee to be 1.95, how will the prospect of an economic bust (expected to decrease consumers' incomes by 6 percent over the next year) impact the quantity of coffee Starbucks expects to sell?
Can these equations be reliably estimated using OLS? Explain. Solve for the reduced-form equations of this model.
Illustrate what price do you think this firm should charge if it wants to maximize its short-run profit.
What would you expect to be the effect on interest rates if the Fed held the money supply constant.
Homer' s boat manufacturing has a monopoly on boat sales in the region. Homer' s marginal cost of the 8th boat produced is $1200.
Which fiscal balance is likely to be influenced and Explain how by treating human capital investments the same as physical capital investments.
For those 50 or older, membership in AARP, formerly known as the American Association of Retired Persons, brings numerous discounts for health insurance, hotels, auto rentals, shopping, travel planning, etc.
What will happen to equilibrium price of new textbooks if more students attend college, paper becomes cheaper, textbook authors accept lower royalties and fewer used textbooks are sold.
Can Economic Analysis be used as a tool to discover truth and to assist in solution of concrete/major problems in an organization. How.
What is the deadweight loss in both markets if the price of a crate of fresh oranges is raised.
Assume that marginal propensity to consume is constant at 1/2 and breakeven point is $8,000. If income is $10,000, n how much will be consumed and how much will be saved.
illustrate the effect of capital formation by comparing the production possibilities curves with the present time and one in ten years time, for two different eonomies, one with a high rate of capital formation, and the other with a low rate of ca..
If the Bank of Canada sells 100 million worth of bonds to the public in an open market operation. What level of output will the firm choose? Is the firm making a profit.
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