Between microeconomics and macroeconomics. Identify each of the following topics as being part of microeconomics or macroeconomics‚ and state your reason why: 20 Marks (2 Marks each) a. the impact of an increase in consumer income on the purchase of luxury automobiles Answer to A. Microeconomics because it looks at economic problems faced by individual within the overall economy. b. the effect of a change in the price of Coke on the purchase of Pepsi Answer to B. Microeconomics because
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comparing their main features. As the terms suggest‚ macroeconomics deals with the market on a large-scale and its aggregate problems‚ while microeconomics concerns markets on a small-scale and individual aspects of the problems. There are six distinct aspects of the two approaches that are shown as in the following table: Microeconomics Macroeconomics (a) Units of the study Individual consumers‚ producers workers‚ traders‚ etc. Aggregate units such
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Reading: Microeconomics of Customer Relationships Reading: Microeconomics of Customer Relationships The follow is a critique and review of the reading of Microeconomic of Customer Relationships by Fred Reichheld. I will review the article and evaluate Mr. Reachheld. I will also apply economic theories into why and how I came to my conclusions. Overview on the Reading Microeconomic of Customer Relationships by Fred Reichheld is based on a simple survey based customer-relationship metric
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1) Which of the following most correctly describes GDP? GDP is the sum of the market value of all A) goods and services purchased within a country in a given time period. B) final goods and services produced within a country in a given time period. C) final goods and services purchased within a country in a given time period. D) intermediate goods and services produced within a country in a given time period. E) final goods and services produced by a
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Analysis 3: Strategies for Profit Maximization in the Market of Fuel-Efficient Cars “In the past‚ nothing slowed down strong car sales faster than a spike in gasoline prices.” Gasoline and normal cars are strong complements because gasoline is necessary for cars to operate and forms the large bulk of the cost of owning a car. The quantity demanded for cars decrease more than proportionately to the increase in prices of gasoline. “These days‚ consumers simply switch to more fuel-efficient
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Buffer stock scheme: is an attempt to use commodity storage for the purposes of stabilizing prices in an entire economy or‚ more commonly‚ an individual (commodity) market Commodity: a raw material or primary agricultural product that can be bought and sold‚ such as copper or coffee. Commodity agreements are international agreements designed to stabilise commodity prices in the interest of producers and consumers. Cross price elasticity Demand: The quantity of a good buyers wish to purchase
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4 MAR‚ 2013‚ 05.23PM IST‚ AGENCIES Tata Motors slashes hatchback‚ sedan prices by Rs 29‚000-50‚000 NEW DELHI: Tata MotorsBSE 0.74 % said it has cut prices of its hatchbacks and sedans by Rs 29‚000-50‚000 ($530-$910)‚ in a bid to lure customers to a market that is on course in the current fiscal year to post the first decline in annual sales in a decade. Tata Motors‚ however‚ raised prices of its sport-utility vehicles (SUVs) - the only bright spot in the country’scar market in recent months
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Over a hundred thousand jobs the U.S. economy has created in the past ten months. It is still below the two hundred thousand needed to drastically bring down the unemployment rate‚ which is around eight percent. The positive we have is income and consumption and GDP growth‚ but it is still growing below trend rates. The housing market still shows little to no sign of life. The high prices of oil are presenting a significant headwind in the U.S. economy. The Federal Reserve still try’s to stimulate
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CAPSTONE CASE 1: ECO-PRODUCTS‚ INC. End-of-Case Assignments: Suggested Discussions and Analyses A. Describe Eco-Products’ early history (1990 through 2003). Would you view the firm during that period as being a life-style business‚ an entrepreneurial venture‚ or? Why? Steve Savage and his father founded the company in 1990 with the intent to provide eco-friendly paper and janitorial supplies. They chose to locate the business in Boulder‚ Colorado‚ a community known for its support
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What is the difference between micro and macroeconomics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. Micro and macroeconomics describe the same concept of economics at different levels hence they are intertwined ideas. Microeconomics is concerned with individuals in the economy like households‚ workers and business (Taylor & Greenlaw‚ 2016). It concentrates on how business establishes prices‚ how it is affected by taxes and it explains the concept of demand
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