1. From the definition of GDP we arrive at the following expression: c + i + g + x-m = y = c + s + t Discuss the three important economic relationships that can be derived from this expression related to the definition of GDP and explain each carefully. The expression above depicts two different ways to come up with real GDP for a country. The left side of the expression explains expenditure side of computing real GDP which can be rewritten as: y = c + i + g +x – m In real terms‚ it could
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SOLUTIONS TO TEXT PROBLEMS: Quick Quizzes: 1. Gross domestic product measures two things at once: (1) the total income of everyone in the economy and (2) the total expenditure on the economy’s output of final goods and services. It can measure both of these things at once because all expenditure in the economy ends up as someone’s income. 2. The production of a pound of caviar contributes more to GDP than the production of a pound of hamburger because the contribution to GDP
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PART I INTRODUCTION TO ECONOMICS Demand‚ Supply‚ and Market Equilibrium 3 © 2009 Pearson Education‚ Inc. Publishing as Prentice Hall Principles of Macroeconomics 9e by Case‚ Fair and Oster PART I INTRODUCTION TO ECONOMICS CHAPTER 3 Demand‚ Supply‚ and Market Equilibrium Demand‚ Supply‚ and Market Equilibrium 3 CHAPTER OUTLINE Firms and Households: The Basic Decision-Making Units Input Markets and Output Markets: The Circular Flow Demand in Product/Output Markets Changes
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MCD2090 Revision Tutorial ( T2‚ 2012) The following questions have been taken from the weekly tutorial questions. You are expected to attempt all of the following questions before you attend tutorial in week 12. 1. Topic: Saving‚ Investment and the Financial System Terms and definitions: * * Financial system * Financial market * Financial intermediaries * Market for loanable funds * Real interest rate * Investment tax credit * Budget deficit * Budget
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Threat of substitutes The threat of substitutes means that a product identical or similar with other product which same characteristics product we found easily. The industry is less attractive when the threat of substitutes is high. In this case‚ we need to produce different product compared to the other firm to attract consumer to buy from us. Our firm threat of substitutes is medium as we are producing the plus sizes of clothing for men and women. In this industry‚ although there are several brand
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Environmental Threats Global Problems Sea Level Rising At present‚ sea levels around the world are rising. Current sea level rise potentially impacts human populations and the natural environment. Global average sea level rose at an average rate of around 1.7 ± 0.3 mm per year over 1950 to 2009 and at a satellite-measured average rate of about 3.3 ± 0.4 mm per year from 1993 to 2009‚[01] an increase on earlier estimates.[02] Climate change Destructive sudden heavy rains‚ intense tropical
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Micro vs. Macro Economics Micro-indiidual consumers/firms Macro-economic aggregates-GDP‚ inflations‚ unemployment Markets-opportunity for exchange 1) Opportunity Costs-value of the next best for gone alternative when a decision is made -all decisions involve an opportunity cost (assuming the firm operates efficiently) 2) Marginal Analysis-analyze situations involving incremental change -marginal: something is changing by a small amount (incremental/one-unit change) 3) Laws of supply and
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the biosphere. Some‚ perhaps all‚ are close to tipping points that‚ if tipped‚ will result in irreversible change. And yet‚ no sense of urgency is apparent. If any one of the eight interactive crises passes a tipping point‚ it will probably act as a threat multiplier for the remaining crises. Both politicians and the average citizen believe that priorities can be established for these interactive crises‚ but such an option is not viable for a highly interactive system. Polls indicate that most people
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strengths‚ weaknesses‚ opportunities and threats – can help assess whether the fast food giant can keep the growth on a high-calorie diet. Strengths: McDonald’s has successfully rolled out new items like coffees‚ smoothies‚ and Angus burgers‚ expanding the range of menu choices. With a strong product offering‚ the company has grown income throughout the recession‚ notching strong increases in same-store sales. Operations are spread around the world‚ meaning the company is not exposed to just
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Challenge or Opportunity Statement People are‚ undoubtedly the best resources of an organization. Sourcing the best people from the industry has become the top most priority of the organizations today. In such a competitive scenario‚ talent management has become the key strategy to identify and filling the skill gap in a company by recruiting the high-worth individuals from the industry. It is a never-ending process that starts from targeting people. The process regulates the entry and exit of talented
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