1 INTRODUCTION 1.1 Definition of economics Economics is a social science‚ positive as well as normative‚ divided into microeconomics and macroeconomics‚ concerned with how society allocates limited factor inputs to produce goods and services to satisfy unlimited human wants. 1.2 Economics as a social science A social science is the study of a particular aspect of human behaviour using the scientific method. Examples of social sciences are economics‚ sociology and
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Partial Answer Key Supply and Demand 1. Use the model of supply and demand to explain how a fall in the price of frozen yogurt would affect the price of ice cream and the quantity of ice cream sold. In your explanation‚ identify the endogenous and exogenous variables. Considering that ice cream is a close substitute for frozen yogurt‚ we would expect an inward shift of the demand curve for ice cream‚ lowering both the price and quantity of ice cream. The price of frozen yogurt is the
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References: Heakal‚ R. (2014). Economics Basics: Supply and Demand | Investopedia. Retrieved from http://www.investopedia.com/university/economics/economics3.asp McConnell‚ C. R.‚ Brue‚ S. L.‚ & Flynn‚ S. M. (2009). Economics: Principles‚ problems‚ and policies (18th ed.). Boston‚ MA: McGraw-Hill Irwin.
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Managerial Finance – Problem Review Set – Capital Structure and Leverage 1) If a firm utilizes debt financing‚ an X% decline in earnings before interest and taxes (EBIT) will result in a decline in earnings per share that is larger than X. a. True b. False 2) Firm A has a higher degree of business risk than Firm B. Firm A can offset this by using less financial leverage. Therefore‚ the variability of both firms ’ expected EBITs could
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Economics 370 Microeconomic Theory Problem Set 6 Answer Key 1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p‚ which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual‚ the monopoly determines its optimal output on the basis of MR = MC. Here‚ however‚ it cannot charge a price in excess of p*. So
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Proposition 213 Exceptions In California‚ it is mandatory for drivers to have liability coverage when operating a vehicle. But insurance gaps can happen. Many don’t even realize their insurance is lapsed. Proposition 213 limits the damages an uninsured driver can recover. However‚ there are exceptions where you can still be compensated. What are the Exceptions of Prop 213? Proposition 213 does not affect your ability to recover medical costs‚ lost wages‚ or damaged property from a car accident
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Acct 2302 Chapter 9 Sample Exam Questions Exercise 184 Coliseum Company has budgeted the following unit sales: Quarter Units Qtr. 1‚ 2006 60‚000 Qtr. 2‚ 2006 50‚000 Qtr. 3‚ 2006 40‚000 Qtr. 4‚ 2006 80‚000 The finished goods inventory on hand on December 31‚ 2005 was 6‚000 units. It is the company’s policy to maintain a finished goods inventory at the end of each quarter equal to 10% of the next quarter’s anticipated sales. Instructions Prepare a production budget for the
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Scerria Ford EDUC 301 B03 Fall 2014 Geometry Essay According to the merriam-webster dictionary‚ the definition of measurement is the "act or process of measuring something". A further explanation goes on saying that the act of measuring something pertains to a size‚ length or amount known by measuring something. I do believe that this explanation works equally well for length‚ area‚ weight and volume but perhaps not time. You can not physically measure time‚ you can not hold time in your hand
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ACTIVITY 2.4 Q1 (A number of alternative solutions are possible) a) 1. Collected amount due from a customer (increase cash‚ decrease receivables). 2. Purchased land for cash (increase land and decrease cash). b) Paid amount due a creditor (decrease cash‚ decrease accounts payable). c) 1. Owner withdrew cash (decrease cash‚ decrease owner’s capital). 2. Paid rent (decrease cash‚ decrease owner’s capital). 3. Reflected supplies expense (decrease supplies on hand‚ decrease owner’s capital). d) Borrowed
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[Q#2020] If buyers’ value for bicycles increase‚ the demand for bicycles will ______.a. Increase [Q#2053] A supply shortage in the market for lettuce will _______ the equlibrium price of lettuce. a. Increase [Q#2057] At any moment the equilibrium price in the market for tablet computers will be determined by ________ . c. Buyers and the sellers of tablet computers [Q#2059] The equilibrium price is also known as c. the market-clearing price. [Q#4021] Along a demand curve with a constant slope
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