JUNE SEMESTER 2013 MANAGERIAL ECONOMICS – BMME5103 ASSIGNMENT (60%) Question 1 Read the following information and answer the questions below. I am all right‚ Son This report on an annual survey of consumers shows that economic and social factors can effect consumer’s tastes and the potential of advertisers to change them. Australians are still a confident lot‚ but we have become more inward-looking. Although 2001 was a year of disturbing events‚ here and overseas‚ Australians remain
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"Explain how production possibilities curves can be used to demonstrate the problem of unemployment‚ the effects of technological change and the benefits of economic growth."A production possibility frontier (also known as production possibility curve) represents all the possible combinations of the production of two types of goods and services that the economy can produce at any given time through graphical means. It is used to clearly demonstrate the problem of unemployment‚ the effects of technological
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Bargaining Power of Suppliers Large number of substitute inputs When there are a large number of substitute inputs‚ suppliers have less bargaining leverage over producers. This is due to competition among substitutes. Greater competition positively affects Video Game Industry. … This statement will have a short-term positive impact on this entity‚ which adds to its value. "Large Number Of Substitute Inputs (Video Game Industry)" will have a long-term negative impact on this entity‚ which subtracts
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khk.l;/;’;ldfkm’sd;gAV~Bond Math 1.- Dirk Schwartz‚ an analyst for TwoX Asset Management L.P.‚ is considering investing $1 million in one of three risk-free bonds. All are single-coupon bonds that make a single payment at maturity. Although interest accrues daily‚ no cash is paid until the bonds mature. Bond A matures in two years and promises an annual interest rate of 9%. Compounding occurs annually; accrued interest is added to the bond’s principal at the end of each year. Bond B has a maturity
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1) Is the assumption that ‘more is better’ satisfied for both goods? 2) What is [pic] for this utility function? 3) Is the [pic] diminishing‚ constant‚ or increasing as the consumer substitutes [pic] for [pic] along an indifference curve? 2. (25 points) A consumer purchases two goods‚ food [pic] and clothing [pic]. Her utility function is given by [pic]. The price of food is [pic] ‚ the price of clothing is [pic]‚ and the consumer’s income is [pic]. 1) What is the demand
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LAW OF DIMINISHING MARGINAL UTILITY: The law of diminishing marginal utility describes a familiar and fundamental tendency of humanbehavior. The law of diminishing marginal utility states that: “As a consumer consumes more and more units of a specific commodity‚ the utility from the successiveunits goes on diminishing”. Mr. H. Gossen‚ a German economist‚ was first to explain this law in 1854. Alfred Marshal later onrestated this law in the following words: “The additional benefit which a person
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Table of Contents Abstract 3 Part 1 - Literature Review 4 1.1. Equity definitions 4 1.2. Measurements of inequality 4 Part 2 - Situation of Income Inequality in Vietnam in the period from 2000 to 2010 7 2.1. Situation 7 2.1.1. Income distribution among 5 quintiles 7 2.1.2. Income distribution between rural area and urban area 9 2.1.3. Income Distribution among 8 regions of Vietnam: 10 2.1.4. GINI coeffiecent 11 2.2. Consequences – the measurement of “40” 12 Part 3:
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Table of content Question 1 2 Question 2 2 Question 3 3 Question 4 3 Question 5 3 Question 6 4 Question 7 4 Question 1 We are given two bonds with the same interest rate of 5%‚ and no one of bonds has an embedded option so they will not be exercised prior to the date of maturity. Moreover‚ both bonds are traded in one market and they have identical yield‚ therefore it is irrelevant factor. However‚ two bonds have different term of maturity: bond A matures in 15 years‚ while bond B matures only
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UNIVERSITY OF TEXAS AT DALLAS SCHOOL OF MANAGEMENT FIN6310: INVESTMENT MANAGEMENT SOLUTIONS TO PROBLEM SET #1 PROF. ARZU OZOGUZ SPRING 2013 1. Calculate the value of the following two bonds. Assume that coupon payments are made semi-annually and that par value is $1‚000 for both bonds. Coupon rate Time to maturity Yield-to-maturity Bond A 5% 5 yrs 7.2% Bond B 5% 25 yrs 7.2% Recalculate the bonds’ values if the yield to maturity changes to 9.4%. Which bond is more sensitive to the changes in
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Introduction Over the past decade‚ medical costs have increased more rapidly than other consumer costs. Americans spent 2.5 trillion on health care in 2009 according to Medicare’s Office of the Actuary. That figure translates into approximately $8‚086 per person‚ or 17.6 percent of the nation’s gross domestic product (GDP).1 Health care costs more than tripled from 1990 to 20092 and are projected to rise to 19.6 percent of GDP in 2019.3 “The 4 percent increase from 2008 levels represented
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