ECO 561 Economics March 12‚ 2012 Abstract The following paper discusses a business proposal on hair extensions. The proposal will include profit maximization strategy‚ how to increase revenue‚ entry into the market. The proposal will also look at product differentiation and the mix of pricing and non-pricing strategies to increase revenue as well as pricing and non-pricing strategies for hair extensions under the current business cycle in the United
Premium Economics Marketing Microeconomics
there are only two countries‚ Portugal and England and two goods‚ wine and corn. The following table provides the yield per acre for each good in each country: Portugal England Wine 30 jugs 15 jugs Corn 60 bushels 45 bushels 1. Portugal can produce more of both goods per acre than can England. So Portugal has the absolute advantage in both goods: for a given amount of inputs‚ Portugal can achieve higher output in wine (or corn) than can England. 2. Comparative advantage
Premium International trade Free trade
1. List the three largest categories that make up the market basket that is used to compute CPI. According to Figure 1 in our textbook‚ there are many categories that make up the market basket used to calculate CPI. They are Housing‚ Transportation‚ Food and beverages‚ Medical care‚ Recreation‚ Education and communication‚ Apparel‚ and other. The three largest categories consist of Housing at 43%‚ Transportation at 17% and Food and beverages at 15%. These three combined make up 65% of the market
Premium Inflation Time
BRANDEIS UNIVERSITY Department of Economics Economics 10a Mr. Coiner Introduction to Microeconomics Fall‚ 2012 Problem Set 2 1. This question examines the impact of 5 events on the market for large automobiles with relatively low gas mileage and relatively high emission levels (think Hummer). Answer each part separately. For each event‚ indicate which curve (D or S) shifts‚ indicate in which direction (left or right) it shifts‚ and show in a demand-supply diagram in which
Premium Supply and demand
Student: ___________________________________________________________________________ 1. Which of the following is a distinguishing feature of a command system? A. private ownership of all capital. B. central planning. C. heavy reliance on markets. D. wide-spread dispersion of economic power. 2. Which of the following is a distinguishing feature of a market system? A. public ownership of all capital. B. central planning. C. wide-spread private ownership of capital. D. a circular flow of
Premium Economics Capitalism Planned economy
1. Advertising can break through perceptual screens with all of the following examples except: A. Closure B. Subliminal ads C. Blogs and electronic bulletins D. Virtual reality 2. The personal determinants of consumer behavior include the: A. Culture in which a person is raise B. Individual’s needs and motives C. Family to which one belongs D. Society from which one comes 3. To be effective‚ market segmentation must meet which of the following basic requirements? A. The firm must avoid focusing on
Premium Marketing Competition
The real origin of the slump had to be located with the US. This does not mean that there were no cyclical weaknesses elsewhere but it is mainly US bcz it had a major influence on the world economy. - The US witnessed 2 major shocks: 1- decrease (Curtailment) of foreign lending 1928-29 which had a deflation impact on the world economy: capital imports of European countries declined. They used to use it to offset BOP. When this became limited‚ the only way to balance
Premium Economics Inflation Productivity
1) They would undertake a defensive open market sale. 18) Flexibility: Open market operations can be used to conduct a small purchase or sale of securities. Conversely‚ if the desired change in reserves or the base is very large‚ the open market operations tool is strong enough to do the job through a very large purchase or sale of securities Reversibility: Open market operations are easily reversed. If a mistake is made in conducting an open market operation‚ the Fed can immediately reverse
Premium Monetary policy Central bank Federal Reserve System
Classical and Keynesian Economic Theories Economics can be defined as a social science concerned primarily with description and analysis of the production‚ distribution‚ and consumption of goods and services. There are two main schools of thought when it comes to economics: Classical and Keynesian economics. Each theory takes a different approach to the economic study‚ but neither approach is flawless. First‚ looking at the Classical economics theory‚ it is based largely on the thought that free
Free Economics Macroeconomics Keynesian economics
The Power of Markets: Who feeds Paris? Two basic assumptions that economists make about individual and firms are that all individuals act in a way to make themselves as well- off as possible. For example‚ individuals make the best use of their utility and skill‚ so they can earn more money. The second assumption is that firms always try to maximize the money they earn. For example‚ if an entrepreneur had two business choices that he could make‚ he would pick the business choice that he thinks
Premium Economics Supply and demand Rhinoceros