Oluwatobi Onibatedo Eco 301 08/24.2013 WEEK 1 HOMEWORK Problem 1 1.a. Suppose the real GDP is currently $97 billion per year and natural real GDP is currently $100 billion. Measured as a percentage‚ what is the real GDP gap? Solutions Actual real GDP- Natural Real GDP =GDP gap over 100 = $97- $100= -3/100 = -3% GDP GAP is -3% The negative answer means the economy as a whole is in a recession. 1(b) Suppose natural real GDP is growing by $4 billion per year. By how much must
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Yajaira Marcano Professor Badi Sabet ECO 2023 April 15‚ 2011 There is a significant debate between proponents and opponents of environmental issues at the moment in our nation. 1) Please give your opinion concerning this issue. 2) Please explain what the Cap-and-Trade Bill is. The environment is essential in any modern economy‚ healthy and prosperity. It is therefore necessary for governments to recognize that environmental economics play an important role in the design of environmental
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Is it necessarily a good thing‚ in terms of the welfare of society as a whole‚ for the government to step in to break up a monopoly in order to create a competitive industry? A monopoly exists when one single firm is the only producer of a commodity in the market‚ allowing them to set prices as they wish and maximise profits due to the high barriers to entry. In this case‚ the firm is given the ability to exploit their consumers in terms of price discrimination based on price elasticity. In this
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before him. These questions deal heavily on microeconomics and macroeconomics with regards to managing approximately 3000 two bedroom apartments and their rentals. Your author will now address the questions as they were presented before him. Identify two microeconomics and two macroeconomics principles or concepts from the simulation. To begin‚ your author feels compelled to first give a brief description of what macroeconomics and microeconomics entails.
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Theory ECON210-1403A-01 July 14‚ 2014 Scenario 2: In order to understand the concepts of macroeconomics and microeconomics‚ the definition and the concept of economics must first be explored and understood. Economics is the focus of how the production‚ consumption‚ and transfer of wealth affect the standard of living. Economics is broken up into main areas‚ macroeconomics and microeconomics. Macroeconomics is the greater aspect of economics as it focuses on aggregate production and consumption in
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THE IMPORTANCE OF MICROECONOMICS 1. New Businesses o Entrepreneurs create businesses by purchasing and utilizing factors of production. In order to estimate the potential return on investment (ROI) of those factors of production‚ entrepreneurs must have a basic grasp of microeconomic concepts: supply‚ demand‚ cost‚ profit. Without such a grasp‚ it is impossible to know how much a particular good can be sold for in a particular area. Furthermore‚ without a grasp of costs and earnings
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to be naturally forming. This enables Microeconomics and Macroeconomics to balance and stay stable. This essay will discuss the effect of supply and demand based off the data from the economic computer simulation from class. Microeconomics The simulation implemented different Microeconomics and Macroeconomics concepts and principles in the teaching process to show the little picture and big picture of economics. Below are the concepts of Microeconomics that I focused on during my learning.
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What is the difference between micro and macro economics? Give an example of a microeconomic phenomenon and an example of a macroeconomic one. Microeconomics is the study of how an individual‚ group or a company makes their decisions while macroeconomics is the study of how decisions are made on a whole‚ which involves growth‚ inflation‚ use of country resources and unemployment; focusing on broad issues. Microeconomics and macroeconomics goes hand in hand‚ they compliment each other. The decisions
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analyzes business strategies and operations of Google Inc through applying microeconomic theories. The main objective of this report is to critically analyze the business operations and strategies of Google Inc. through an economist’s perspective. It shall also provide recommendation and suggestions on the business strategies of Google Inc to develop in-depth understanding about the microeconomic concepts. 1. Introduction Microeconomic theories provide a deeper insight to determine behaviors of individuals
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It begins with a covering known as economics that leads to a multitude root system known as microeconomics only to be fed by the morsels of supply and demand. Though what seems simple in building this mountain‚ many factors exist waiting for their chance to cause destruction. However‚ to understand our quest to the top‚ consumers must understand the clues that are defined as economics‚ microeconomics‚ Law of supply and the Law of demand. Dictionary.com states that economics is " The social science
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