Luz Figuereo Professor Allen Sauberman March 7, 2012 Paper #1 Chapter 1 Key Points: 1. Economics is the study of choices we make among our many wants and desires given our limited resources. 2. Self-interest is not the same as selfishness. For example, Mother Theresa who spent her life caring for others, her work could be considered done because of her self-interest but who would consider it selfish. 3. Ceteris Paribus which means “holding everything else constant”. Basically when
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price elasticity of demand? Use those determinants and your own reasoning in judging whether demand for each of the following products is probably elastic or inelastic: (a) bottled water; (b) toothpaste; (c) Crest toothpaste; (d) ketchup; (e) diamond bracelets; (f) Microsoft Windows operating system. ---Substitutability, proportion of income; luxury versus necessity, and time. Elastic: (a), (c), (e). Inelastic: (b), (d), and (f). 5. Calculate total-revenue data from the demand schedule
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Assignment 2: Operations Decision Kenneth Agbatutu Dr. Jingxi Liu Managerial Economics & Global Sunday, November 23, 2014 There are many options in the low-calorie frozen, microwavable food industry available in the industry today. The demand for this market has increased over the years as consumers are in need of quick on the go meals. Two of the leading competitors in the industry include Lean Cuisine and Smart Ones. Lean Cuisine offers a brand of frozen meals manufactured by the Nestle
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Topic 1 The Scope of Economic Analysis Question 1.1 “According to the definition of opportunity cost, the more alternatives that we have given up in undertaking an action, the higher the opportunity cost.” Please comment on this statement and explain your answers using examples. Ans Opportunity cost of an action refers to the value of the best alternative that must be given up in order to undertake that action. That is, the highest-valued option forgone. The statement in the question is
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systems. A vast difference between movement along and shift in the demand curve for the different health care systems. For instance, the government funds Medicaid and Medicare to provide services to the indigent and disabled population. However, many factors exist that influence the control of health care spending from an economic standpoint. The objective of this paper is to discuss the role of government and the supply and demand curves concept to show the difference between movement along and shift
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Section A: Fundamentals of Accounting (60 Marks) 1. Theoretical Framework: (i) Meaning and Scope of Accounting, (ii) Accounting Concepts, Principles and Conventions, (iii) Accounting Standard – concepts, objectives, benefits, (iv) Accounting Policies and (v) Accounting as a measurement discipline – valuation principles, accounting estimates. 2. Accounting Process: Books of Accounts leading to the preparation of Trial Balance, Capital and revenue expenditure, Capital and revenue receipts, Contingent
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Case study 1.1 What did that really cost you? Economists measure costs using a concept called opportunity cost. The opportunity cost of an action is the resources used when that action is taken valued in their next best alternative use. It is the problem of scarcity that explains why economists think opportunity cost is the appropriate measure of cost. Scarcity of resources implies that the real cost of an action to society is the resources that are used when that action is taken. Therefore, to
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reduce consumption, which will also reduce the amount of time a car spends on the road, therefore will reduce consumption. On the other hand, the reduction of consumption may not be a substantial amount, due to the fact that fuel has a low price elasticity of demand, and is therefore inelastic. Another factor that will hinder the effect an increase in fuel tax will have on congestion, is brought to light in Extract C. C mentions that “ as more cars become electrified and fuel-efficient, the amount of revenue
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organizations and the economy operate as a whole. Many factors affect supply and demand. Price is the main factor that affects the supply and demand levels, this change can be reflected by a movement along the supply or demand curve. Factors that are not related to price, will shift the entire supply or demand curves. Before a firm decides to make changes in the price of their goods, it must determine the price elasticity of demand for that good. In this reflection paper, each team member will evaluate
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Sample Multiple Choice Question for Practising 1. An economic theory claims that a rise in petrol prices will cause petrol purchases to fall, ceteris paribus. The phrase ‘ceteris paribus’ means that: a. other relevant factors like consumer incomes must be held constant. b. the petrol prices must first be adjusted for inflation. c. the theory is widely accepted but cannot be accurately tested. d. consumers’ need for petrol remains the same regardless of the price. 2. Which of the following
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