BEC1034: Tutorial 1 Tri3 2012/13 Tutorial 1: Ten Principles of Economics Please try to answer all the questions. 1. The overriding reason why households and societies face many decisions is that a. resources are scarce b. goods and services are not scarce c. incomes fluctuate with business cycles d. people‚ by nature‚ tend to disagree 2. Which of the following examples does not illustrate the principle represented by the adage‚ "There is no such thing as a free lunch"? a. Joe needs to pay his
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Managerial Economics (ECO 642 OA) Fatma Abdel-Raouf Fall I‚ 2014 Exercises # 1 (the Price System) Answer the following questions. Explain your answer. An answer with no explanation receives no credit. 1. David Smith must decide whether to start a business renting beach umbrellas at an ocean resort during June‚ July‚ and August of next summer. He believes that he can
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Socio-Economic Causes for The American Revolution The American revolution was a literal revolution of 360 degrees‚ in which it ended mostly where it had began‚ with a group of elite‚ rich men in charge. As the American colonies developed a stronger economic trade due to the Salutary Neglect that Britain had imposed on them‚ they began to flourish during the 1600’s and 1700’s in cash crops like tobacco‚ fur‚ sugar‚ etc. Until‚ Britain realized that their power towards the colonies had began to weaken
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have recently inherited my Grandfather’s coffee shop‚ The Broadway Café‚ which is conveniently located in Troy‚ Michigan near Walsh College. The café offers many different kinds of specialized coffees‚ teas‚ and a full service bakery. Since the café opened in 1952 it has been a local hotspot for people near the neighborhood. Unfortunately‚ my Grandfather was very “old school” so the café is in great need of some renovation. The Café needs faster ways to put in orders‚ track inventory and sales‚ and
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issues in economics is how tax rates relate to economic growth. Advocates of tax cuts claim that a reduction in the tax rate will lead to increased economic growth and prosperity. Others claim that if we reduce taxes‚ almost all of the benefits will go to the rich‚ as those are the ones who pay the most taxes. Specially‚ we truly care about how tax rates can lead to the changes in labor supply and aggregate demand (AD). What does economic theory suggest about the relationship between labor supply‚ AD
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change in wage (w) WHEN WE LOOK AT THE SUPPLY OF LABOUR = LS = g(w‚ # of earners‚ level of education) Note: the increasing level of education increases the hour of work (LS) Sidenote: explained about wealth – which is the accumulation of income which is not consumed vs income which is meant to consume. Labour Supply Equilibrium Ls=Ld Labour Demand Tool and Die makers for example are at a shortage‚ which means there is an excess demand‚ where the supply curve shifts to the left. How do we
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Honors Economics 8 October 2012 Cigarette Taxes The interest in cigarette taxes and their effects have been a hot topic in relation to the economy for the past 20 years. People question whether or not increased taxes really affect the demand. Do the taxes cause effects other than a change in demand? Who does this ultimately effect‚ the rich or poor? Where does the money go? So why does the government decide to impose
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POLS 5440 Principles and Processes of Government Budgeting | Sin Taxes‚ Good or Bad? | An Examination of the Use of Sin Taxes in the United States | By: Stacy Madden4/27/2012 | Executive Summary Historically sin taxes have been an effective and efficient way for the government to raise revenue. The federal government used tariffs and consumption taxes to generate almost all of its revenue in the early years of our nation. The tax structure and philosophy has evolved and changed
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1. POVERTY: According to different surveys conducted by different organizations 40%of a country’s population is earning their life below the poverty-line in which the people are deprived of basic necessities of life such as clothing‚ shelter‚ food‚ education and health. 2. ILLITERACY: Majority of the people are almost unaware of technologies and technical education. People are poor and they can’t afford fee of private schools and the condition of Govt. schools is miserable and majority of
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each of the following‚ indicate the possible effects on he demand and/or supply‚ equilibrium price‚ and equilibrium quantity of chocolate ice cream. * A sever drought in the Midwest causes dairy farmers to reduce the number of milk- producing cows in their herds by a third. These dairy farmers supply cream that is used to manufacture chocolate ice cream? By reducing the number of milk-producing cows in famer’s herds‚ supply will fall. A shortage of cream now exists and the market is no longer
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