Premium Essay

Economics Project Part 1

In:

Submitted By ecomenterprise
Words 396
Pages 2
Project Part 1
Matthew Gist
ITT
Microeconomics
ES2550
Roger Lignugaris
April 19, 2015

Project Part 1 A. Does the United States have a comparative advantage in wingdings? Explain.
It is cheaper to import wingdings than it is to produce them. If the US had a comparative advantage in wingdings, we would export them. Comparative advantage is that the countries with a comparative advantage in a certain good will specialize in and export that good. B. Discuss the effect of the tariff on the number of imports.
The tariff decreases the import from 20 at the world price to 6 after the tariff. The price increases from $6 to $8 for someone to buy a wingding in the US, which means the quantity demanded domestically is now 18 and the quantity supplied domestically is 12, which is only a shortage of 6 units that needs to be supplied. C. How did the imposition of the tariff change consumer surplus?
The tariff decreased consumer surplus by the area with height 8-6 and base y = 26 and base z= 18. The area of this can be calculated by splitting the area into a rectangle and a triangle. The rectangle has an area of (8-6)x18=36 and the triangle has an area of (1/2)x(26-18)x2=8. Adding the two the consumer surplus went down by 44. D. How did the imposition of the tariff change producer surplus?
Producer surplus increased after the tariff, by the area with height 8-6 and base y=6 and base z=12. The area of a trapezoid is just [(b1+b2)/2]xh, which is [(6+12)/2]x(8-6)=[18/2]x2=18. The producer surplus goes up by 18. E. What is the overall result of the tariff in terms of welfare?
The tariff will lead to deadweight loss, which means that total welfare will be smaller than it was before the tariff. This is because the consumer surplus went down by 44, and 18 of that went to the producers. The tariff will generate revenue for the government, which is just $2

Similar Documents

Premium Essay

Business Economics Gm 545 Project Part 1 Fall Session a 2011

...come under growing pressure to ensure that workers in their supply chain - particularly in labor-intensive markets such as India and China - are not exploited. The BBC's Panorama programme, which carried out a six-month investigation, alerted Primark to the problems that their suppliers are sub-contracted smaller firms, which were using child labor to carry out embroidery and sequin work. Under the terms of its code of practice for suppliers, Primark prohibits the use of child labor in its manufacturing chain. Equilibrium Price: This is the price at the quantity of goods demanded is equal to the amount supplied. Let us take an example, say when the price of a tin of sugar is $1 there was a demand of 100 boxes of sugar and 100 boxes were supplied to the market at that particular time. Then we say that $1 is the equilibrium price at that point. Considering consumers as stakeholders, the intense pressure cause the demand of the Primark’s products to decrease. A decrease in the demand of their product leads to excess supply of their products. Since supply is excess, equilibrium price will fall. A case may also arise where there will be a change in both supply and demand of their commodity. This may occur in the ways that both demand and supply may increase or both supply and demand may decrease, supply may increase while demand decreases and lastly, supply may decrease while demand increases. If both supply and demand decrease equally, it is assumed that no change had occurred...

Words: 979 - Pages: 4

Premium Essay

Feasibility Study Guideline

...4T12 Project FEASIBILITY STUDY GUIDELINE This guideline is to be used in preparing a feasibility study for major projects. This is different to the work carried out in the Infrastructure Planning examined in Module 2 because we are now concerned with the details of a particular project as opposed to the overall planning of a whole multi-year infrastructure programme. The term “feasibility study” is used as a convenient description for the output for the work done, users of this toolkit should not apply preconceived notions of what a feasibility study consists of. Stated as simply as possible, the work done here must show that the project: ➢ is in accordance with predetermined needs; ➢ is the most suitable technical solution to the needs; ➢ can be implemented within any capacity constraints of the Institution which operates; ➢ has been subject to a due diligence that shows it is legally, physically and socially compliant; ➢ is fully costed over the whole life of the project; ➢ has taken due cognisance of the risks associated with its whole life cycle; and ➢ is affordable to the institution responsible for the project in the context of the available budget; The feasibility study guideline set out below is for a comprehensive document that, in many instances simply uses information already collected and set out as part of the steps carried out by the Institution. That said it is necessary to create a study that creates a holistic justification...

Words: 4935 - Pages: 20

Premium Essay

Disadvantages Of CPEC

...CPEC- STRATEGIC ADVANTAGES FOR PAKISTAN AND CHINA INTRODUCTION 1. Economic corridors have appeared as a significant tool of local cooperation and development in a globalized world. The name ‘Corridor’ suggests a passage that connects the two separate countries or regions. ADB defines ‘Economic Corridor’ as “they join economic lumps along a distinct landscape”. The impression is to increase economic expansion by connecting backward regions with more developed industrial hubs and to expand access to markets through the merger of trans-border production networks. 2. During the visit of Chinese Prime Minister to Pakistan from 22 to 23 May 2013, China proposed a ‘China-Pakistan Economic Corridor’ (CPEC or C-PEC) to connect Kashgar in China’s Xinjiang...

Words: 1068 - Pages: 5

Premium Essay

Gm545 - Project Part 1 - 2011

...Course Project - Part 1 This course contains two project assignments -- Project Part 1 in Week 2, and Project Part 2 in Week 5. Because of this, you will need to spend additional time and effort in Weeks 2 and Week 5. |Overview | | | | | Project Part 1 (PP1) Project Part 1 (PP1) consists of performing application-oriented exercises wherein the specific economic principles learned in this course are put to practical use. You must translate your ideas into economic analysis using the specific economic theory and economic terms contained in the TCOs covered in the course, and demonstrate that you are understanding and utilizing material from text chapters covered up to this point in the course, to receive full credit on the assignment. You are being asked to submit a report containing responses to three exercises. Exercise 1 entails a choice of one topical microeconomic issue out of two possible alternatives. Exercises 2 and 3 entail a choice of two textbook questions out of a list of possible alternatives. |Exercise 1 | | | | ...

Words: 1382 - Pages: 6

Free Essay

Role of Rcc in Socio Economic Development

...Introduction Rajshahi is the largest city in the northern part of Bangladesh. It stands by side of Padma. Rajshahi was known an important business place for a long time ago and the river played a significant role to transport. Padma lost its fierceness day by day due to farakka damp and other reasons. But Rajshahi city still contains its own glory. In the British era and, before and after the liberation war of Bangladesh, the contribution of the people of Rajshahi is remarkable. The famous historian Sir Jadunath Sarker, Khan Bahadur Emaduddin, Madar Bux, Dr. Samsujjhoha, A.H.M. Kamaruzzaman and many others played a crucial role for the betterment of the people of this area as well as the country. Rajshahi was very important from a long time ago due to geographical, political, economic, educational reason and others. It was first declared as district town in 1825 in the British era, and in the then time it was known as Rampur-Bowalia. It was a famous trade port. The Rampur-Bowalia Municipal Town Committee was formed in 1869. The Municipality started from 1st April in 1876. After passing a long time now we have Rajshahi City Corporation, started its journey in 1987. In the min time a lots of things have been changed but the objective remain the same. Rajshahi City Corporation is trying heart and soul for the socio-economic development of the people which was started in 1876. The corporation is an autonomous body which is operated by the elected people. The head of the organization...

Words: 10969 - Pages: 44

Premium Essay

Automated Cash Registers, Scanners, or Other Digital Devices.

...National ICT Strategy and Plan NICI - 2015 © No part of this document can be reproduced, stored in a retrieval system, or transmitted in any form or by any means - electronic, mechanical, photocopying, recording, or otherwise - without the permission of the Rwanda Ministry in charge of ICT in the Office of the President.   List of Acronyms AGAGE AISI AMIS ARTEL BNR BPO CD CERT COMESA CNS-ATM CS CSIRT CTC FWG DCRS EAPP EASSy EDPRS e-GOV EMIS EMR EQMS ERMS FMS FY GDP GIS GNI GNP GoR G2B G2C G2G HIV HLSC HRMS ICT ICT4D IDS IPAR IPS ISP ISPA ITU IXP JICA Advanced Global Atmospheric Gases Experiment African Information Society Initiative Agriculture management Information System Africa Rural Telecommunication Banque National du Rwanda Business Processing Outsourcing Community Development Computer Emergency Response Team Common Market for Eastern and Southern Africa Communication Navigation Surveillance /Air Management Cyber Security Computer Security Incident Response Team Coordination Technical Committee Focus area Working Group Develop a Digital Court Recording System East African Power Pool Eastern Africa Submarine Cable System Economic Development & Poverty Reduction Strategy (2008-2012) e-Government Education Management Information System Electronic Medical Records Electronic Queue Management System Electronic Records Management System Financial Management Systems Fiscal Year Gross Domestic...

Words: 28160 - Pages: 113

Free Essay

Plant Design Microalgae Biodiesel

...PLANT DESIGN PROJECT GROUP MEETING Venue: Makmal Umun 1, SKTM Date: 20th September 2011(Tuesday) Time: 1.00pm – 2.00pm ATTENDEES 1. Benjamin Kam Weng Wei (Project Manager) 2. Yong Kai Yieng (Secretary) 3. Md. Yasir B. Yaakob 4. Mohammad Syah Bin Abdurahman 5. Ewan Tambakau @ William No | Agenda | Description | Action taken/ Person-In-Charge | 1. | Opening remarks | * The Project Manager welcomed all members to the first meeting of milestone 4 | Benjamin Kam | 2. | Project discussion | * Discuss about the project title and the requirements of milestone 4 as told by Dr Chu * Understanding what should be included in Milestone 4 * Every should refresh back what we had done for the previous milestone and clear about the process flow of the butadiene plant * updated of any new information that found during the holiday which may be helpful in completing milestone 4 | All | 8. | Adjournment of meeting | * The Project Manager thanked all members for being present for the day. There being no other matter to discuss, the meeting was adjourned at 2.00pm. Next meeting was set tentatively on 23 of September 2011. * Secretary need to remind everyone again one day earlier before the next meeting | BenjaminYong Kai Yieng | Prepared by: _____________________________ YONG KAI YIENG Secretary of Plant Design Group 8 | Approved by: ________________________________ BENJAMIN KAM WENG WEI Project Manager of...

Words: 1887 - Pages: 8

Premium Essay

Target Corporation

...Company Overview In the first part of our analysis, we give a brief introduction about Target Corporation and its main competitors, Costco and Wal-Mart, so that we can set some decision rules to allocate the resources. Target Corporation Brand Strategy Target Corporation has a very strong brand, and their logo is recognized by more than 97% of the United States population. One of Target’s strength is that the corporation has more than 1,750 stores in the United States, and it has store in almost all the states of United States. Another of its strength is its ability to anticipate the demands of the customers and its ability to provide high-quality and innovative products which in return make their customers become loyal of availing all their services and products. Table 1 SWOT Analysis of Target Corp. Strengths Strong brand awareness and recognition Employee retention Design and innovation Opportunities Global expansion Focus on private label products Advised Future Strategy The threat faced by all these market players is the recession faced by the US economy, and since Target only operates in the United States, they don’t have the ability to fall back on their foreign markets. So Target must begin their career to the global markets. And It’s over emphasis upon the quality of products makes its products expensive than its competitor Wal-Mart. Therefore Target must devise effective strategies to ensure high quality at economic prices. Weakness Low global presence Quality obsession...

Words: 4236 - Pages: 17

Premium Essay

Trader Joes

...Demand” provided in our library homepage. Most of them are ready for you to review. But since they are online programs, a few may be not available by the times you click the links. If so, just skip that one and watch the others. Please try both “by segment” or “by title” for your search. Course Description: China, the most populous country, is an excellent "laboratory" for the social scientific study of political, economic and social behavior. The Twentieth Century alone has seen many changes in China's fundamental institutions: from imperial courts to military regimes and single-party police states, from rural households to international stock-holding companies, and from foot-binding and slavery to mass movements and democracy protests. The latest development in the last decade has led to the calling of the twenty-first century as “the Chinese Century,” which suggests the possibility that the 21st century will be dominated by China, similarly to how "the American Century" refers to the 20th century and "the British Century" refers to the 19th century.[1] The phrase is used particularly in the assertion that the economy of China will overtake the economy of the United States as the...

Words: 4130 - Pages: 17

Premium Essay

Capital Budgeting

...companion toll free course can be accessed by dialing 1-877-689-4097, option 3, ID 752. Chapter 1 The Overall Process Capital Expenditures Whenever we make an expenditure that generates a cash flow benefit for more than one year, this is a capital expenditure. Examples include the purchase of new equipment, expansion of production facilities, buying another company, acquiring new technologies, launching a research & development program, etc., etc., etc. Capital expenditures often involve large cash outlays with major implications on the future values of the company. Additionally, once we commit to making a capital expenditure it is sometimes difficult to backout. Therefore, we need to carefully analyze and evaluate proposed capital expenditures. The Three Stages of Capital Budgeting Analysis Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year. We are trying to answer the following question: Will the future benefits of this project be large enough to justify the investment given the risk involved? It has been said that how we spend our money today determines what our value will be tomorrow. Therefore, we will focus much of our attention on present values so that we can understand how expenditures today influence values in the future. A very popular approach to looking at present values of projects is discounted cash flows or...

Words: 5166 - Pages: 21

Premium Essay

Project Report on: Strategic Planning, Financing and Implementing a Preliminary Implemantation

...| ECI PROJECT PLAN2014-15 | bcorp | [Date] | [Course title] | | | ECI PROJECT PLAN2014-15 | bcorp | [Date] | [Course title] | | PROJECT REPORT ON: STRATEGIC PLANNING, FINANCING AND IMPLEMENTING A PRELIMINARY IMPLEMANTATION IN “EXOTIC CAR INC (ECI) FOR 03 YEARS”. With this project report we are explaining about the project strategic plan, analysis, appraisal, finance and preliminary implementation for initial 03 years. Also, we will study all phases of project like - project planning, project analysis, project initiation, project implementation, and project result. Every stage is vital to make a project success. The major areas of the project reports are defined below: Project planning and analysis: 1. ANALYSIS We are about to create a new Project activity plan for ECI. We are about make a plan which will be feasible to implement for attaining more customer and for attaining quality of service 24/7. In this Analysis we will do in-depth study of all the departments of ECI from production to marketing to make a solid analysis of ECI business ways. 2. Detailed planning I. Technical feasibility The Technical Feasibility Study reports shows the details of how ECI will deliver a product or service i.e., materials, labor, transportation, technology needed, etc. A increase in business productivity in ECI would reach through its Technical belongings and thus the Technical products like Materials for car services, Car washer machines...

Words: 1604 - Pages: 7

Premium Essay

Jjkji

...|[pic] |Syllabus | | |College of Natural Sciences | | |HCS/440 Version 5 | | |Economics: The Financing of Health Care | Copyright © 2010, 2007, 2005, 2004, 2002, 2000 by University of Phoenix. All rights reserved. Course Description This course provides an overview of the economics of health care. The various payers are examined, including private, state, and federal entities. Issues such as the cost effectiveness of prevention, the management of patients and their diseases, as well as the cost of treatment settings are discussed. Third party reimbursement from various sources, ranging from for-profit insurance carriers to charitable donations, are reviewed. The health care system's use of grant funding and research dollars is described. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: • University policies: You must be logged into the student website to view this document. ...

Words: 1808 - Pages: 8

Premium Essay

Capital Budgeting

...com/training A companion toll free course can be accessed by dialing 1-877-689-4097, option 3, ID 752. Chapter 1 The Overall Process Capital Expenditures Whenever we make an expenditure that generates a cash flow benefit for more than one year, this is a capital expenditure. Examples include the purchase of new equipment, expansion of production facilities, buying another company, acquiring new technologies, launching a research & development program, etc., etc., etc. Capital expenditures often involve large cash outlays with major implications on the future values of the company. Additionally, once we commit to making a capital expenditure it is sometimes difficult to backout. Therefore, we need to carefully analyze and evaluate proposed capital expenditures. The Three Stages of Capital Budgeting Analysis Capital Budgeting Analysis is a process of evaluating how we invest in capital assets; i.e. assets that provide cash flow benefits for more than one year. We are trying to answer the following question: Will the future benefits of this project be large enough to justify the investment given the risk involved? It has been said that how we spend our money today determines what our value will be tomorrow. Therefore, we will focus much of our attention on present values so that we can understand how expenditures today influence values in the future. A very popular approach to looking at present values of projects is discounted cash flows or DCF. However, we will...

Words: 5166 - Pages: 21

Premium Essay

Chapter#2

...Chapter 2/Fundamental Economic Concepts Chapter 2 Fundamental Economic Concepts Solutions to Exercises 1. The number of checked bags should fall, as individuals internalize the external cost of added weight. However, the average weight should rise, as those checking bags would in all likelihood pack as much as possible to make up for the cost. 2. The wage in the market for oil spill cleanup efforts should rise, thanks to an increase in demand for labor. The wage in the market for similarly-skilled labor should also fall, as the relevant labor supply falls in response to the previous increase in wage. We would expect an increase in migration, as long as the wage of the home market was less than the wage that could be received in the Gulf region. 3. Projects A, C, G and B require a total of $875 million in investment. Project B, the lowest return project of this group is expected to generate an 18 percent rate of return. Ajax can raise up to $1,050 million, with the highest cost being 18 percent for the last $200 million. If Ajax were to choose any project beyond A, C, G, and Bsuch as project D (the next best project after B)that project would generate a marginal rate of return (16 percent), which is less than the marginal cost of funds needed to finance it, in this case 18 percent for the last $200 million up to a total of $1,050. Thus, the optimal capital budget is to invest in projects A, C, G, B, for a total of $875 million. 4. This question examines expected values...

Words: 1045 - Pages: 5

Free Essay

Purchase of Moral Satisfaction

...included in normative economic analysis offers the arguments that inclusion is unnecessary as results are the same, that inclusion can result in double counting and will result in acceptance of projects that fail to pass a potential compensation test. I show that these arguments are unpersuasive or incorrect. Instead the inclusion of moral sentiments has potential to improve normative analysis. This is illustrated by comparing the standard criteria for benefit cost analysis (Kaldor-Hicks) that does not include moral sentiments with a modification (KHZ) that does. KHZ dominates KH even by the principles of KH itself. JEL Codes: Q20, D6, D63, D64 I. Introduction The practical criteria for economic efficiency, the Kaldor-Hicks (KH) criteria, have existed for over sixty years, without the profession fully facing the issue of whether or not moral sentiments should be included in normative economic analysis. In part this is due to historical reasons, in part to normal inertia associated with any academic discipline, in part because of the recent interest in moral sentiments in the form of existence values and in part because of objections raised to inclusion of moral sentiments. This paper concerns two issues. The first is whether or not it is desirable to include moral sentiments in welfare analysis. The answer to this question will depend in part on the answer to the second question, which is whether there is a suitable economic metric for considering...

Words: 11004 - Pages: 45