The Key to Cost Reduction

The Key to Success
4. What are the pros and cons of management using theexperience curve to determine strategy?
The experience curve is an idea developed by the Boston Consulting Group (BCG) in the mid–
1960s. Working with a leading manufacturer of semiconductors, the consultants noticed that the
company's unit cost of manufacturing fell by about 25% for each doubling of the volume that it
produced. This relationship they called the experience curve: the more experience a firm has in
producing a particular product, the lower are its costs. However, if the decline in cost is fast if
growth is fast and slow if growth is slow.
The strategic implications of the experience curve came closer to shattering earth. For if costs fell
(fairly predictably) with ... Show more content on Helpwriting.net ...
In some cases, this can save companies money because they do not have to pay travel expenses.
When employees use technology for telecommuting, they can work in the comfort of their home
instead of traveling to a workplace.
Benefit: Saving Time
Technology can decrease the time it takes to accomplish a task, which can ultimately save money
and increase productivity. Communication speed also increases. Instead of sending a message by
postal mail, using email or fax can deliver it instantaneously. Technology can also speed up various
manufacturing processes, as machines and computers can do work that was once performed by
humans more quickly and efficiently.
Drawback: Dependency
On the downside, the use of technology doesn't always result in greater efficiency. Companies that
depend heavily on computer systems to conduct business can come to a virtual standstill if the
system breaks down. There is typically a learning curve that accompanies the introduction of a new
process, which can lead to a loss in productivity and disgruntled employees. For employees who
telecommute and experience computer problems, it may be more difficult to receive timely technical
support.
Drawback: Need to Upgrade
Some technologies contain features that need to be upgraded regularly, which can result in an
additional expense for the company. For example, companies may need to change computer
software frequently just to

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Macroeconomics: How the IS-lM Model Can Help UK's Economy
Introduction The formation in May 2010 of the first coalition government in the UK for seventy
years was followed by the announcement that government deficit reduction was the government's
top policy priority. During the general election campaign the need for fiscal consolidation was
accepted by all three major political parties. The Republican Party however was the only party that
argued for a program of accelerated debt reduction and warned that if the election failed to produce
a decisive outcome in the form of a government with an overall majority and with a "credible" plan
for deficit reduction, this could have dire consequences for the economy and the public (National
Archives, 2010). Since World War II, government policymakers have tried to promote high
employment without causing inflation (National Archives, 2010). If the economy experiences a
recession such as the one that plagued the UK, policymakers, two principal sets of tools to use are
aggregate demand: monetary policy. These involve the control of interest rates or the money supply,
and fiscal policy, the control of government spending and taxes (National Archives, 2010). The IS–
LM model can help policymakers predict what will happen to aggregate output and interest rates if
they decide to increase the money supply or increase government spending. In this way, ISLM
analysis will guide towards coming up with an ideal answer to the deficit problem facing the UK's
economy. It also highlights the usefulness

Essay on ECN100 HW2 3
HW 1 (1) Draw an indifference curve map with the quantity of pennies are on the horizontal axis
and the quantity of nickels are on the vertical axis. Given the shape of your indifference curve, how
would you describe the typical relationship between these two "products"? The two goods are
perfect substitutes for each other. 5pennies are equivalent to a nickel. (2) You and I are in consumer
equilibrium. CDs cost 10 dollars each and cassette tapes only 2 dollars each. I consume CDs and
cassettes. You consume only cassettes. What can you infer about my MRS (marginal rate of
substitution) of CDs and tapes? What about your MRS. Since both individuals are in consumer
equilibrium, for you, the MRS should equal the price ratio since you consume ... Show more content
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With the income effect you consume less of both goods (since real income has decreased).
Therefore at the new equilibrium, you consume less of X and the amount of consumption of Y
depends on the relative strength of the two effects. (5) Think of a commercial establishment
(department store, coffee shop, gas station, store from which you make common purchases – that is
spending your hard–earned money) and think through the questions in the previous exercise (4) as
they would apply yourself and to the goods offered by this establishment. That is, take any two
goods or groups of goods from the store you have chosen and re–do the questions in (4) as they
would really apply to you and your tastes. Now you are thinking economics and thinking creatively
as well! Consider choice made between having fruit beer(X) or having ice cream(Y) after
dinnerassuming that both are good goods. At the equilibrium, the MRS=price ratio = PX/PY. At the
equilibrium, the indifference curve is tangential to the budget line. MRS =MUX/MUY =PX/PY, i.e.
MUX/PX = MUY/PY Now it is given that X(fruit beer) is "craved" much more for relative to Y(ice
cream). Hence the indifference curves becomes steeper. That is now you are willing to give up more
amount of Y to have a unit more of X. Alternatively, it can be said that you need more of Y to leave
you indifferent for the same decrease in X. Hence the slope of the indifference curve, i.e. the
marginal rate of substitution increases, i.e. MUx/MUY increases.

Macroeconomic terms
Macroeconomic Terms
Describe the following terms in your words.
Term Definition
Gross Domestic Product (GDP)
The value of all of the goods and services of a nation in a year.
Real GDP The value of all of the goods and services based on inflation of a nation in a year.
Nominal GDP Market value of all goods and services of a nation in a year, not based on inflation.
Unemployment rate The number of all of the unemployed by the number of people in the workforce.
Inflation rate The rate that the prices of goods and services are rising.
Fiscal Policy The governmental policies which adjust spending.
Monetary Policy The governmental policies that help to control the economy. This is done by
adjusting the ... Show more content on Helpwriting.net ...

The aggregate demand curve slopes downward because of the
Real–balance, interest rate and open economy effects

According to the real–balance effect, an increase in the price level
Reduces an individual 's expenditures due to a decrease in the real value of cash balances

According to the interest rate effect, an increase in the price level

Increases

The relationship between the MPC and the MPS indicates that the entire increase in household
disposable income
is distributed between consumption and saving.

Planned real investment is determined by the
rate of interest

What won 't cause the planned investment function to shift rightward?
A decrease in the interest rate

An increase in the interest rate causes
a decrease in the amount of real planned investment

In the Keynesian model equilibrium national income
equals planned consumption, investment, government, and net export expenditures

If real GDP falls below total planned expenditures the economy will

Eco Test Paper
Section – I 1 Citrus Speculation and Forecasting, Inc, has been hired by a private consortium of
orange growers to predict what will happen to the price and output of oranges under the conditions
below. What are your predictions? For each part, sketch a graph showing the appropriate demand
and supply analysis. a) A major freeze destroys a large number of the orange trees in Florida. b) The
American Medical Association announces that drinking orange juice can reduce the risk of heart
attack. (Marks 10) 2) During a year of operation, a firm collects Rs. 2,00,000 in revenue and spends
Rs. 90,000 on raw materials, labor expense, utilities, and rent. The owners of the ... Show more
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b) The difference between the legal and illegal prices of a prohibited demerit good. c) The difference
between the intrinsic worth of a good and its market price d) The positive difference between the
cost of a good and its market price e) None of the above 9) Which of the following is not true? a)
Indifference curve describes all the possible combinations of two goods which give equal
satisfaction to the consumer. b) Total utility is the sum of marginal utility of all units of a good
consumed. c) When price of a product increases, demand for its complement increase. d) Utility is a
psychological concept and therefore cannot be precisely measured. e) Consumer surplus of a good
and its economic value are different. 10) Which of the following statement is true? a) Anything that
increases total utility will, other things being equal, tend to raise marginal utility. b) When a buyer
experiences consumer surplus, the seller experiences a loss. c) If A and B are substitutes, then a rise
in the price of A will tend to result in an increase in the demand for B. d) It is possible to sum
individual demand curves to get the market demand curve only when all consumers are

Economies Of Scale Essay
5.6 Economies of scale
Economies of scale are a Micro economics concept. Economies of scale give a cost benefit to an
organization that produces goods in a very large scale. The cost per unit decreases as the production/
sales increases. This is because a firm may incur certain fixed cost which when apportioned to large
units volume decreases the unit cost of a product. The Table below better illustrates the concept.
Let's take an example of cool drink manufacturer.
Table 5.4 Economies of scale
Costs Production – 1000 Units per day Production – 10,000 Units per day Production – 1,00,000
Units per day
Fixed Cost (Rent, Salaries, Interest on loan etc) 1,00,000 1,00,000 1,00,000
Variable Cost per Unit (Bottling cost, raw material etc) 10 10 10 ... Show more content on
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Role of economies of scale in business strategy and competitive advantage:
One of the main sources for a firm to attain cost leadership advantage is through economies of scale.
There are many chances for a manufacturing unit to bring down its cost through large scale
production. Cost can be reduced through maximum utilization of the plant, machinery and
warehouses. Standardized products can be manufactured in large scale to bring down the cost of a
product. Usually when a firm enters in large scale production they cut down on the variations to the
models and concentrates on standardizing the product and marketing it across the globe.
A firm gets significant advantage through economies of scale when it has multinational operations.
The firm can set up its manufacturing units in low cost center and distribute its products across its
market. Though the market for the company's products can be worldwide, all the products can be
manufactured in one or fewer units in the places where the company has maximum of location
advantage and distributed across the

Strategic Cost Advantage And Competitive Advantage
According to Michael Poter (cited in David 2011) the value chain can be best described as "the
business of a firm, in which total revenues minus total costs of all activities undertaken to develop
and market a product or service". A strategic cost analysis "is the process whereby a firm determines
the costs associated with organizational activities from purchasing raw material to manufacturing
products to marketing those products" (David 2011, 119). The goal of this analysis is to determine
whether or not a company has a competitive advantage over its competitors. This is done by
identifying where, low–cost advantages or disadvantages that exist anywhere along the value chain
from raw material to customer service activities. Also the strategic cost analysis also enables the
company to better identify its own strengths and weaknesses.
Once a company is capable of producing goods at lower costs than the market price within the
industry, the company earns profits and it has a competitive advantage. This advantage gives a
company an edge over its rivals and an ability to generate greater value for the firm and its
shareholders. A company can also achieve a competitive advantage if their core competence is ...
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This money invested over the years has allowed Procter & Gamble to grow into a successful
business earning $12.7 billion in 2010 and have at least one of its products used in 99% of the
households in United States and Canadian. Although research and development has played a major
role in Procter & Gamble's success in having 250 branded products. Producing the products
customers need with simple ways to use them, is what keeps the customers continuously buying the
products over the years causing a product produced to become a well known branded one over

Business Economic
1. The theory of consumer choice provides the foundation for understanding a. the structure of a
firm. b. the profitability of a firm. c. a firm 's product demand. d. a firm 's product supply. ANS: C
PTS: 1 DIF: 1 REF: 21–0 TOP: Consumer choice MSC: Definitional 2. The theory of consumer
choice examines a. the determination of output in competitive markets. b. the tradeoffs inherent in
decisions made by consumers. c. how consumers select inputs into manufacturing production
processes. d. the determination of prices in competitive markets. ANS: B PTS: 1 DIF: 1 REF: 21–0
TOP: Consumer choice MSC: Definitional 3. Consider two goods, books and hamburgers. The slope
of the consumer 's budget constraint is measured by the a. consumer 's income ... Show more content
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Refer to Figure 21–1. A consumer that chooses to spend all of her income could be at which point(s)
on the budget constraint? a. A b. E c. B, C, or D d. A, B, C, or D ANS: C PTS: 1 DIF: 1 REF: 21–1
TOP: Budget constraint MSC: Applicative 14. Refer to Figure 21–1. All of the points identified in
the figure represent possible consumption options with the exception of a. A b. E c. A and E d.
None. All points are possible consumption options. ANS: B PTS: 1 DIF: 2 REF: 21–1 TOP: Budget
constraint MSC: Applicative Figure 21–2 15. Refer to Figure 21–2. Which of the graphs in the
figure reflects a decrease in the price of good X only? a. graph (a) b. graph (b) c. graph (c) d. graph
(d) ANS: B PTS: 1 DIF: 2 REF: 21–1 TOP: Budget constraint MSC: Analytical 16. Refer to Figure
21–2. Which of the graphs in the figure reflects an increase in the price of good Y only? a. graph (a)
b. graph (b) c. graph (c) d. graph (d) ANS: C PTS: 1 DIF: 2 REF: 21–1 TOP: Budget constraint
MSC: Analytical 17. Refer to Figure 21–2. Which of the graphs in the figure could reflect a decrease
in the prices of both goods? a. graph (a) b. graph (b) c. graph (c) d. graph (d) ANS: D PTS: 1 DIF: 2
REF: 21–1 TOP: Budget constraint MSC: Analytical 18. The slope of the budget constraint is
determined by the a. relative price of the goods measured on the axes. b. relative price of the goods
measured on the axes and the consumer's income.

Questions On Business Economics And The Production...
ASSIGNMENT 2 BUSINESS ECONOMICS SUBMITTED TO: PRIYANTHA BANDARA
(LECTURER) KENT INSTITUTE OF TECHNOLOGY STUDENT NAME STUDENT ID
MANPREET SINGH K150361 DEVINDER SINGH K140882 EXECUTIVE SUMMARY The
report deals with issues that arise in the production possibilities frontier as a result of workers
moving from their domestic countries to foreign countries for better work opportunities. Major
focus of this report is on change in PPF curve due to emigration and how production is being
affected due to it. The main issues discussed in the report are how change in technology or resources
mediate PPF curve outward or inside and how environment is being affected by that. To understand
this, the report first show the curve of an economy ... Show more content on Helpwriting.net ...
In addition to this, moving from one country to another can also lead to this impact on PPF. Mark
Paterson, Tony Abbott and Julia Gillard have also given their views on PPF and how increase in
population can effect PPF. 1.2 Aims This report examines PPF curve with change in population of
country to find how and what shift can be seen in curve and how environment is being impacted by
that. 1.3 Scope The report only discuss about change in PPF curve due to immigration. It does not
discuss how the shift in curve can be brought back to its original place by making any changes to
conditions and how can this migration be prevented to boost the production of a country. 2.0 PPF
without Immigration Production possibility frontier Curve A Curve B CAPITAL GOODS Figure 1:
PPF without immigration Figure 1 clearly shows PPF of a country which has no immigration in
happening in it. It can either be position A or B depending on circumstances but A is its actual
position where all production work is stable whereas B is a scenario which can occur if there is
economic growth in a country which is

Monopoly and Marginal Cost
Practice Questions and Answers from Lesson III–3: Monopoly Practice Questions and Answers
from Lesson III–3: Monopoly The following questions practice these skills:  Explain the sources
of market power.  Apply the quantity and price affects on revenue of any movement along a
demand curve.  Find the profit maximizing quantity and price of a single–price monopolist. 
Compute deadweight loss from a single–price monopolist.  Compute marginal revenue.  Define
the efficiency of P = MC.  Find the profit–maximizing quantity and price of a perfect–price–
discriminating monopolist.  Find the profit–maximizing quantity and price of an imperfect–price–
discriminating monopolist. Question: Each of the following firms possesses market power. ... Show
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They are thinking about making the movie available for download on the Internet, and they can act
as a single–price monopolist if they choose to. Each time the movie is downloaded, their Internet
service provider charges them a fee of $4. The Baxter brothers are arguing about which price to
charge customers per download. The accompanying table shows the demand schedule for their film.
Price of download Quantity of downloads demanded $10 0 $8 1 $6 3 $4 6 $2 10 $0 15 a. Calculate
the total revenue and the marginal revenue per download. b. Bob is proud of the film and wants as
many people as possible to download it. Which price would he choose? How many downloads
would be sold? c. Bill wants as much total revenue as possible. Which price would he choose? How
many downloads would be sold? d. Ben wants to maximize profit. Which price would he choose?
How many downloads would be sold? e. Brad wants to charge the efficient price. Which price
would he choose? How many downloads would be sold? Answer to Question: a. The accompanying
table calculates total revenue (TR) and marginal revenue (MR). Recall that marginal revenue is the
additional revenue per unit of output Price of download Quantity of downloads TR MR demanded
$10 0 $0 $8 1 $8 $8 $6 3 $18 $5 $4 6 $24 $2 $2 10 $20 $–1 $0 15 $0 $–4 b. Bob would charge $0.
At that price, there would be 15 downloads, the largest quantity they can sell. c. Bill would charge
$4.

The Cost of Turnover
The Cost of Turnover
Putting a Price on the Learning Curve by Timothy R. Hinkin and J.BruceTracey
Employee turnover does more than reduce service quality and damage employee morale—it hits a
hotel’s pocketbook.
E
mployee turnover has long been a concern of the hospitality industry, and therefore of researchers
who examine industry human–resources concerns. One stream of research that arose in the past 20
years was an effort to quantify the cost of employee turnover. Although most managers agreed that
turnover was bothersome, calculating a dollar figure for employee departures would provide those
Timothy R. Hinkin, Ph.D., is a professorof managementorganization, human resources, and law
(MOHRL) and director for undergraduate ... Show more content on Helpwriting.net ...
The lodging industry sees fierce competition, with new products and branding strategies vying for
the dollars of increasingly demanding consumers. Technologically, the industry has made
tremendous progress in revenue–management systems, computerized reservations, and POS
systems, and we can only hazard a guess what the internet will eventually mean to the lodging
industry. Virtually all jobs have been altered by technology and downsizing, and hotel employees
have more to learn and do than they did two decades ago. The demographic characteristics of the
workforce have changed, and in many markets most of the people considered employable are
already employed. With predictions of labor shortages to come, competition for qualified employees
will only increase, making employee retention an important managerial objective. A recent stream
of research has empirically demonstrated a significant relationship between sound human–resources
practices and financial performance.3 For example, a recent study by Delerey and Doty found that
three HR practices— namely, results–oriented perform mance appraisals, employment security, and
profit sharing—were strongly related to return on equity and other financial measures of a firm’s
3 For example, see: Jeffrey Pfeffer and John Viega, “Putting People First for Organizational
Success,” Academy of Management Executive, Vol. 13, No. 2 (1999), pp. 37–48; and James L.
Heskett, Thomas O. Jones, Gary

Discuss How Changes on Aggregate Demand Influence Price...
Diana Gaita
Economics FB1
Discuss how changes on aggregate demand influence price levels, output levels and employment.
The meaning of "aggregate" is added together. All of the elements introduced in microeconomics are
totaled in macroeconomics. Aggregate demand and supply analysis brings together the amount that
consumers wish to consume and firms wish to produce at any price levels. Aggregate demand (AD)
is the total demand for final goods and services in the economy (Y) at a given time and price level.
Also it is the amount of goods and services that will be purchased at all possible price levels in the
economy. This is called the demand for the Gross Domestic Product of a country when inventory
levels are static. The ... Show more content on Helpwriting.net ...
Confidence in future sales patterns and government incentive and regulations will also affect the
investment levels.
Another injection in the economy is the multiplier effect of the investment. In the economy, the
money invested today will have a greater impact such as increasing the levels of output in the future.
This is because investment rises the capital stock. With an evolution in technology, the machineries
help production become faster and cheaper, thus contributing greatly to increasing the output in
long–term. * The Price Level and Net Exports: The Exchange–Rate Effect
Exports represent an injection into the circular flow of income, in that the money paid for goods and
services sold abroad enters the domestic flow of income. Imports mean that there is an outflow of
money, and exports minus imports gives the total movement of funds known as net exports. There
are a number of reasons why the value of net exports might change. If the exchange rate increases in
value against other currencies, imports become cheaper and exports more expensive on world
markets. Over time, people respond to these relative price movements and the demand for exports
falls and the demand for imports rises. A stronger currency will worsen net exports, whereas a
weaker currency will improve the figure. Also, for example if a fall in the UK price level causes UK
interest rates to fall, the real exchange rate

Value Creation Essay
Value creation
Two basic conditions determine a firm's profits: the amount of value customers place on the firm's
goods or services and the firm's costs of production. In general, the more value customers place on a
firm's products, the higher the price the firm can charge for those products. Note, however, that the
price a firm charges for a good and service is typically less then the value placed on that good or
service by the customer. This is so because the customer captures some of that value in the form of
what economists call a consumer surplus.
The value creation by a firm is measured by the difference between the amount of value customers
place on the firm's goods or services (V) and firm's cost of production. Michael porter has ... Show
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Mexico has 3 distinct adv over asia. First, it is nearer to US. Second, it has a cheap labor. Third, the
north–american free trade agreement has removed many barriers between US and mexico.
Another caveat concerns the importance of assessing political and economic risks when making
location decisions. Even if a country looks very attractive as a production location when measured
against all the standard criteria, if its govt is unstable or totalitarian, the firm might be advised not to
base production there. Or inappropriate economic policies by the govt.
Experience effects
The experience curve refers to systematic reductions in production costs that have been observed to
occur over the life of a product. A number of studies have observed that product's production costs
decline by some quantity about each time accumulated output doubles. The relationship was first
observed in the aircraft industry, where each time accumulated output of airframes was doubled,
unit costs typically declined to 80% of their previous level and it continues.
Experience effects are caused due to: learning effects and economies of scale.
(draw the experience curve pg 419)
Learning effects
Learning effects refer to cost savings that come from learning by doing. Labor, for example, learns

by repetition how to carry out a task, such as assembling airframes, most efficiently. Labor
productivity increases over time as individuals learn the most efficient ways

Aggregate Demand And Supply Essay examples
AGGREGATE DEMAND AND SUPPLY
AGGREGATE DEMAND:–
Aggregate demand is the amount which will be spent at different values of the price level. It is
composed of consumption (C), investment (I), government spending (6) and net exports (X–M).
THE AGGREGATE DEMAND CURVE:–
The aggregate demand curve shows the quantity of goods and services which households, firms,
overseas buyers and government are prepared to buy at different values of the general price level. It
is drawn on the assumption that other things (e.g. the money supply, rates of taxation, the marginal
propensity to consume) remain unchanged. Figure 28. I shows an aggregate demand curve.
WHY THE ADCURVE SLOPES DOWN FROM LEFT TO RIGHT:–
There are three main reasons why ... Show more content on Helpwriting.net ...
Figure 28.2 shows an extension in aggregate demand. If the general price level falls people's
purchasing power will increase, the transactions demand for money will fall causing a reduction in
interest rates and domestic goods and services will become more price competitive.
____________________________________________
THE SHAPE OF THE AGGREGATE DEMAND CURVE:–
One group of economists, Keynesians, believe the aggregate demand curve is steep. This is because
they think that a rise in the general price level will have only a small impact on the rate of interest
and this in turn will have only a small impact on consumption and investment. They argue that the
demand for money is dominated by the speculative rnotive. This is interest elastic so that an increase
in demand for money will cause only a small rise in the rate of interest. In their view the main
influence on both consumption and investment is income and not the rate of interest. The
implication of the aggregate demand curve being steep is that a change in the general price level
will not significantly alter aggregate demand.
In contrast new classical economists believe the aggregate demand curve is shallow, they think the
main component of the demand for money is the transactions demand. This is interest inelastic so if
a rise in the general price level leads to an increase in demand for money there may be a large rise in
the rate of interest.

The Snap ( Supplemental Nutrition Assistance Program ) And...
The SNAP (Supplemental Nutrition Assistance Program) and WIC (Women, Infants, Children)
programs both have similar jobs. Both programs attempt to help feed struggling families. In the past
SNAP allowed members to purchase food staples and prepackaged food, but a recent bill is being
made in order to address these rules. These changes will deactivate members' abilities to purchase
prepackaged food, and has limited them to purchase only food staples. These food staples included
foods such as rice, bread, fruits, etc. While the desired new rules for SNAP are similar to the current
rules of WIC, the bill will also attempt to allow members of WIC to purchase white potatoes in
addition to their food staples. Multiple commodities' economic standing will experience larger
impacts on supply and demand from this proposed bill's changes and implications. As SNAP shifts
to strictly staple foods, the economic impacts will implement changes on the supply and demand of
rice. In the short run the price of rice will rise and the demand curve of rice will shift outward. This
effect will take place because of SNAP's proposed limitations. If the members of SNAP are limited
to only food staples they will find themselves demanding more rice than before. This shift will cause
an upward movement along the supply curve. There will be an increase in the quantity of rice
supplied in the long run because the demand will have grown from the limitations placed on SNAP
consumers that suppliers will have

The As And Ad Model Essay
The AS and AD Model
Aggregate Supply (AS): The total of goods and services produced in an economy at a given price
level (P), and period of time . The AS relation P=P^e (1+μ)F (1–Y/AL,Z), explains the effects of
output on price level. A higher output results in an increase in price level hence the upward slope of
the AS Curve2. Aggregate Demand (AD): The total of goods and services demanded in an economy
at a given price level and period of time1. The AD relation Y=Y(M/P,G,T), captures the effect of
price level on output. A lower output leads to higher price level hence the downward sloping AD
curve2.
In the short run output can be below or above natural level, which is caused by shifts in AS or AD.
An economy is in expansion when the level of production (Y), is above the natural level (Yn) due to
increase in Investment, consumer or government spending. The short run equilibrium is shown in
graph 1, by intersection of the AS and AD curves at point A, where the labour, goods and financial
markets are all in equilibrium. Y and P give the equilibrium level of output and price level, the
positive gap between Y and Yn is called expansionary gap2.
Adjustment: From Short run to Medium run
Overtime the economy will experience adjustment, where Y moves towards Yn. Looking at graph 2,
the short run equilibrium is at point A, where Y>Yn and P>Pe. Since P>Pe wage setters will
increase their expectations of Pe in the future from Pe to Pe'. This will shift the AS curve upward
from AS

Fiscal Policy as an Economic Stabilization Measure
FISCAL POLICY AS AN ECONOMIC STABILIZATION MEASURE
Fiscal Policy refers to the various decisions undertaken by the government regarding public
expenditures and revenue. There are a large number of sub–policies that are encompassed by the
fiscal system. But all the policies can be broadly categorized as being either 'Public Expenditure' or
'Public Revenue'. It can be said that the fiscal policy is a direct government intervention in the
economic processes of an economy.
The fiscal policy is very objective in nature, since it creates decisions that can be uniformly applied
to the entire economy or to a segment of the economy. The fiscal policy is considered to be more
direct than the monetary policy in its impact on the economy. ... Show more content on
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However, it should be noted that the increase in the interest rate has brought about a disincentive for
the private sector within the economy. The private investors are dissuaded from borrowing the
investible funds lying with the financial system, since the ROI is too high and so unattractive for
them. Had the shifting of the IS curve not caused the interest rate to rise (i.e., the ROI was fixed at
OI1), then given the new IS situation, the economy would have been at equilibrium at E3 and the
income would have risen to OY3. Thus, we see that an expansionary fiscal policy has reduced the
possibility of creating income up to OY3 – hence, Y2Y3 represents the amount of additional income
lost i.e., the 'Crowding–out Effect'.
Showing the COE with the help of AD function:
The fiscal policy, with a constant money supply, is less expansionary than it would have been if the
money supply were increased to keep the ROIs constant as income expanded. Hence, the fall in
income by Y1Y2 is the crowding out effect.
Showing the COE with the help of the PPF:
But as soon as an expansionary fiscal policy causes the government spending to increase to g2, the
private sector's spending falls to h2. Therefore, amh2h1 is indicative of the extent of the crowding
out effect of the fiscal policy.
It is possible to

Barriers to Entry
RTE Cereal Industry Barriers to Entry Giovanni Massari 1) Economies of Scale: with regards to
Economies of Scale, we have Product–Specific ones with regard to the fact that there is a minimum
efficient scale of production in the industry, without which firms wouldn't survive in the
environment; requirements, in this case, are 75 million pounds of cereals per year to be efficient.
Other scale economies can be Multi–Product ES ("Economies of Scope"); indeed, different types of
cereals can be produced in a very similar way, not requiring different production facilities, but
leveraging the existing ones. The same can also be applied to packaging/bagging, which is the main
source of Economies of Scale, because the Big Three use the same ... Show more content on
Helpwriting.net ...
4) Product Differentiation: in order to communicate differentiation of their products to consumers,
Big Three spent massively on advertising (advertising/sales ratio: 18.5%). In this regard, also brand
extensions have to be considered, because in this way they're reaching different markets (e.g.,
healthy–food lovers, with the introduction of fruit in cereals). In order to further differentiate from
new entrants, the incumbents used to provide customers "In–Pack Premia" (only one at a time, in
order not to be negatively affected one by the other). 5) Capital Requirements: in order to enter the
industry, there were huge capital expenses to be sustained by firms, such as a minimum of $ 100
million for capital investments, and at least 125 employees to run a plant that could produce both
packaging and cereals themselves. In this framework, advertising expenses may be added too, since
they're a great part of the expenditures a RTE Cereal firm has to face, and they also represent a great
Barrier To Entry, being an amount close to 1/5 of the sales generated by the company. 6) Access To
Distribution Channels: Big Three have ease of access to distribution channels, for instance through
their "Shelf–Space Plans". These were intended to give their products the most valued positions in
supermarkets, offering also a simple resolution to shelf space struggle (space was allocated in
proportion to historical sales

The Economic Changes That Europe Should Expect From Asian...
INTRODUCTION TO ECONOMIC ANALYSIS 153400003 2014/15 Fall Term Assignment
Microeconomics Daniel Waddington 609670 Essay Topic: The fall in demand for goods in Asia is
likely to have repercussions for goods markets in Europe. Using the concepts of "supply",
"demand", and "elasticity", examine what effects the slow–down in Asia may have on British
consumers and producers of consumer goods in Europe. Submission Deadline: 10/12/14 Word
Count: Introduction The prospect of the recent economic slow–down in Asia spreading into Western
economies has become a topic of intense discussion in the media over the past year. The growing
concern that decline in Asian demand for goods will have significant repercussions on European
goods markets is theoretically well founded, but the presence of many variables makes quantifying
those repercussions very complex. This essay will attempt to identify the theoretical economic
changes that Europe should expect from Asian slow–down. Applying that theoretical framework to
hypothetical real world scenarios will assist in determining more specific effects that European
producers and consumers should expect to encounter as a result of Asian decline. Competition in
foreign and domestic markets European firms which are active in competitive market structures
domestically and overseas will encounter repercussions across geographic regions. These firms will
also facilitate the transfer of repercussions to other domestic

Determinants Of Inflation And Unemployment
Inflation and unemployment are two of the most important economic performance indicators, and
both are watched closely by analysts and businesses. Economists often cite he misery index, which
includes the unemployment and inflation rate, as measuring the health of the economy. The
Bartavian Bureau of Labor Statistics regularly releases a jobs report that economists and Bartavian
policy makers follow closely and use to create policy.
Unemployment and inflation both have long–run determinants, although natural unemployment is
dependent on numerous features of the labor market, like minimum–wage laws, unions' market
power, efficiency wages, and the effectiveness of the job search. Growth in money supply is the
primary determinant of the inflation rate, and it is controlled by Bartavia's central bank. Therefore,
inflation and unemployment do not affect one another in the long–run.
However, inflation and unemployment affect one another in the short–run. There is a short–run
trade–off between inflation and unemployment, as exemplified by the Phillips curve. The Phillips
curve is a downward sloping line that shows the trade–off, as inflation gets lower as unemployment
grows, and vice versa. Monetary and fiscal policymakers often expand aggregate–demand, forcing
the economy to move up along the short–run aggregate–supply curve, but this causes a rapidly
rising price level. If the monetary and fiscal policymakers did the opposite and contracted
aggregate–demand, the economy moves

Washburn Guitars Case Summary
1. What are the factors most likely to effect the demand for the lines of Washburn guitars (a) bought
buy first time guitar buyers (b) bought buy a sophisticated musician who wants a signature model?
These are better known as demand factors. According to Kerin & Hartley (2017, p. 359) they are
factors that determine consumers' willingness and ability to pay for products and services. In the
case of the first time guitar buyers they will be affected by all three–demand factors greatly: price
and availability, income, and their own personal tastes. The first time buyer will be looking for the
most bangs for the buck, instant gratification, expandability, and something they will be proud to
utilize. Where as (b) sophisticated musician who wants a signature model it all about aesthetic and
ability to have a rare item. In some case consumer income takes low priority. If the product is too
expensive they will delay purchase. Sophisticated musician often have brand loyalty and searching
for a specific sound quality that comes from that brand. For instance, when I purchased my first
DSLR camera price was the main factor in selecting a camera. However as a professional, consumer
income is not a major factor because the income from my sales pays for the equipment. Now I look
for a specific effect that is render by each lens combination and prime f/1.4 lens are pricey. Also
when it comes to a signature model or the company's flagship model people have no issue paying
more.
2. ... Show more content on Helpwriting.net ...
For Washburn, what are examples of (a) shifting the demand curve to the right to go a higher price
for guitar line (movement of the demand curve) and (b) pricing decision involving moving along
demand

Disadvantages Of Total Curve
Total Curve is the best product when it comes to all the breast enhancement methods that are
available in the market. Here are some of the reasons why you should choose this over others. The
Pros – Total Curve top ten benefits This is the most well balanced system of bust improvement. It is
an amalgamation of medical and natural procedure that helps in overall development of the breasts.
This kit will enhance your breast size, shape and will also lift your breasts. So it is not just about
large breasts but also about total beautification of your breasts. If you are looking for a product that
will help you to have perkier breasts after pregnancy then this is the product for you. This is a
completely safe product and if you ... Show more content on Helpwriting.net ...
This is the only not so good bit about this product. Please be advised that the natural procedures of
getting bigger breasts like exercises and dieting are no doubt is completely safe and healthy but they
require a lot of patience and dedication to show results. What this product has done is that it has
combined all the different procedures of breast enhancement and got in together in this kit. So
actually your efforts is a little bit easier and results become three times more effective compared to
its competitors. Where to buy Total Curve? This product is easily available on the internet and you
will get it shipped to you with complete discretion. A month's supply of this breast enhancement kit
is less than $70 and generally you get an added discount on it as well. Does Total Curve really
work? Here are some of the customers' reviews that will tell you what women who have used Total
Curve have to say about it. Monica from UK says, "I have been using the Total Curve cream and
pills for 2 months and I can see results. My breasts are firmer and fuller and I'm going to continue
with the programs. I was bit sceptical at first but since the price was affordable, I decided to give it a
try and surprisingly it work really well and some of friend have already noticed how different I look
but most importantly I feel more confident with many different dress that I always wanted to."
Stephanie from USA says, "Since I started using your Total Curve product I feel

Advantages And Disadvantages Of Economies Of Scale
ECONOMIES OF SCALE
In microeconomics, economies of scale can be defined as a scale which is there when lager output is
obtained with the lower per unit cost this is because the fixed cost is spread over the more units
produced or generated.
The phenomenon of economies of scale is being used by various organisations and business firms in
the sectors like manufacturing plants or the entire unit.
Need for economies of scales:–
The large scale business can cut down their selling prices in the market which can increase the sales
of their product and the as well as the increase in the market share. This increases threat to the low
scale businesses which can be undercut in the market.
Secondly, a business can stick to its current but can earn ... Show more content on Helpwriting.net
...
Thus, they require very less time or labor hours to generate the same amount of any output which ay
were earlier producing by using even more labor hours. Managers which are involved in the
management and scheduling of a production process also get familiar with a process and are thus in
better position to use a resources at air disposal in better manner as well as scheduling a production
process more efficiently thus leading to more output for a same amount of

Exchange Rate and Trade Balance
THE IMPACTS OF EXCHANGES RATE CHANGES ON TRADE BALANCE: THE CASE OF
VIETNAM
1. Background of the study
Among various subjects in the field of international trade and monetary policy, the relationship
between real exchange rate and trade balance is one of the most popular topics, attracting extensive
studies in last couple decades. Although a lot of efforts have been made, international trade
economists have yet come up with a convergence point in theory to explain the moving direction of
trade balance as the result of currency depreciation or appreciation (Qiao, 2005). Empirical studies
also show divergence results of this topic. (Koray and McMillins, 1998). Moreover most of the
study has been conduct with economy with higher level ... Show more content on Helpwriting.net ...
Research Objectives and Questions
Research Objectives
The major aim of this dissertation is to study the relationship between real exchange rate and
balance of trade in Vietnam since the interception of Renovation Policy. The cope of the study will
especially focus on the period between 2007 and 2012, as Vietnam became the 150th members of
the World Trade Organization (WTO) on the January 11th 2007.
Research questions: * What can we really conclude about the effect of depreciation or appreciation
of Vietnamese Dong has on the trade balance? * Does the Marshall – Leaner conditions hold and J–
curve exist in Vietnam during above–mentioned period? * Is that relationship significant enough so
that policy can be conducted base on the conclusion of previous question? * In the case monetary
authority choose to implement the result of previous questions, how long will it take for the
exchange rate policy to really effect trade balance.
Terms of Reference
The result of this research could be implement by monetary authority in Vietnam to determine the
real effect of forex policy on trade balance. Based on the result they can decide whether or not to
implement such policy to fight trade deficit problem in Vietnam.
4. Theoretical Framework/Initial Literature Review
Definitions and theories
According to Krugman (2011) trade balance is the

The Threat Of Zomato
Threat from Substitutes
Zomato is of the strong belief that their focus on restaurant discovery and facilitating a holistic
dining experience gives them an edge over competition.
As Deepinder Goyal, founder, Zomato, says, Zomato is driven to constantly improve our product
within the space with a small margin of error. Zomato realizes that it is a winner–takes–all and is
therefore focused on dominating the competition within its space.
Google Maps – Latest release of Google Maps for desktops includes listings of restaurants in the
neighborhood. It also facilitates restaurant search and provides photos, reviews, ratings and even the
floor the business is located at. Zomato's advantage over Maps is that Maps hasn't started menu
listings yet ... Show more content on Helpwriting.net ...
Since it is easy–to–use online platform, constraints related to distribution is eliminated. This
removes a potential factor for bargaining of buyers.
Bargaining power of suppliers
Suppliers of Zomato – Print media and online media – Editors' choice on play store
Zomato has become famous through its publicity in print media, through play store, through
advertisements in Restaurants. To add to this, there is also dependency on reviewers – they do not
have any way to check the authenticity of reviews as of now.
These all become the suppliers of Zomato. Thus the threats which they face are:
What if restaurants do not want to list themselves on Zomato? What if they move to another app?
Since the reviews are subject to the perspective of the patron, it may be a biased one – moreover,
spam may defeat the purpose – Ratings may get subjective. They have a content team, but it needs
to expand.
Zomato does not have a system of rewarding the reviewers who spend a lot of time writing reviews
– which may put them off from writing
Incentives for reviewers are required – if competitors give them – they may switch to other apps –
they should make sure the reviewers stay

The Benefits Of Food Programs
The Supplemental Nutritional Assistance Program and Women's, Infants and Children benefit
programs are designed to give the recipients additional resources in order to help their households
function. SNAP currently has no restrictions on types of food that are available to purchase. WIC,
on the other hand, has more limits on what food items recipients can purchase. These two programs
total to affect 56.6 million people. The proposed legislation states that SNAP users are only allowed
to purchase staple food items and now allows WIC recipients to purchase white potatoes. Changes
to the SNAP and WIC legislation would positively effect staple food items such as rice and
potatoes, while foods used highly in processed foods like sugar and ... Show more content on
Helpwriting.net ...
This is shown in Figure 2 by S0 being pulled inward to S1. In the long run, the total effect will be a
decrease in quantity and an unspecific price change. If this new amendment to the bill is passed it
will have a significant negative effect on sugar producers and cause them to leave the sugar industry
and move into a new field in order to turn a profit.
Effects of Wheat Exports
The revisions to SNAP focuses on the benefactors only being able to purchase staple food items.
Wheat is a primary ingredient in many non–staple food items meaning it will negatively affect the
wheat sector. Upon passage of the revisions, in the short run, a lower demand for wheat will be
experienced as illustrated in Figure 3. The price will be lowered and the amount needed will
decrease. Then as demand decrease, in the long run, the producers will have no chose but to supply
less. This will lead to S0 being shifted inward to S1. The change in supply results in a lower
quantity produced and an undetermined price. As a whole, this legislation would not be beneficial to
wheat farmers as it will cause them to receive a lower profit compared to before the proposed
changes.
Effects on White Potatoes
In recent years, WIC has not allowed recipients to purchase white potatoes with their benefits.
However, under the new proposed changes, WIC would now allow the purchase of potatoes. This
will have a significant effect on the

What Is Cartesian Geometry
Families of Polar Curves: Unique and Countless More often then not, Cartesian coordinates can be
found throughout the world of mathematics. This system is heavily applied in calculus as it utilizes
the x–y grid and provides defined positions on a graphic, only allowing for one representation of
each point. However, this system can be converted into the polar coordinate system, which utilizes
the knowledge of r and . The system of polar equations can arguably be more useful than Cartesian
coordinates when discussing circular motion and fields as it permits each point on a graph to have
more then just one representation. Polar equations become more practical to use when describing
objects that are centrosymmetric and when objects are placed in ... Show more content on
Helpwriting.net ...
After spending some time looking at the countless possible outcomes that a polar equation can have,
I found that there are several factors that actively make a curve look the way it looks. First off, using
advanced trigonometric identities as well as utilizing varies numbers and powers can change a curve
in order to present a radically different outcome then what has been examined. The Conchoid of
Nicomedes (Figure 5) is an interesting graph that represents something previously unseen. Secondly,
unknown polar curves also become apparent when placing equations in the graphing calculator. By
using already understood polar curves, one could create a unique curve by adding different
variables. One example of this can be seen in Figure 6 which has no classification, but that I believe
looks similar to a shell. Lastly, polar curves heavily depend on the area of which they are being
observed. This means that certain windows can give a different perspective of the same curve. After
messing with the bounds of the curve two very distinct graphics were experienced and are depicted
in Figure 7 that shows the standard view and fixed view. This fascinating picture shows the
individuality of polar equations and how they can be useful in more then

Unemployment And The Rate Of Inflation
Unemployment and the rate of Inflation are two main problems faced by most economies around the
world. Lower rates of each are sought after in order to create and maintain a more stable economy.
Unemployment rate can be officially defined as a measure of the prevalence of unemployment and it
is calculated as a percentage by dividing the number of unemployed individuals by all individuals
currently in the labour force. The inflation rate is the percentage rate of change of a price index over
time. The Retail Prices Index is also a measure of inflation that is commonly used in the United
Kingdom. It is broader than the CPI and contains a larger basket of goods and services.
By obtaining data for two countries, UK and France, on unemployment rate and CPI, which allowed
me to calculate inflation rate and then further the change in inflation rate, I have been able to
construct the table above. This table clearly shows the comparison between the two countries
between the time period of 1970–2013. From this table I am able to create graphs to represent the
data in an aesthetically pleasing format – a picture says a thousand words. Firstly I will begin by
discussing the unemployment rate graph.
This line graph represents the comparison of the changes of unemployment rate data from 1970 –
2013 for the countries France and United Kingdom. At 1970 France 's unemployment rate remains
consistent for 4 years while the UK 's rises slightly however generally during the 1970s the

Symptoms And Treatment Of Idiopathic Scoliosis
Abstract
Scoliosis is a condition were the spine, which is normal straight, is curved to the left, right or in
some cases both left and right. Idiopathic scoliosis has no known cause, 80% of all cases of scoliosis
are idiopathic (Gennari et al. 2015). This curvature can cause problems with the heart, lungs, and
cause back pain due to the stress on the spine. Ten to twenty percent of people experience back pain
during growth in adolescence (Gennari et al. 2015). Those who suffer from idiopathic scoliosis are
twice as likely to experience back pain when compared to patients without scoliosis (Théroux et al.
2015). Idiopathic scoliosis affects between 2% and 3% of the world population (Théroux et al.
2015).
Once diagnosed with Idiopathic scoliosis it begins a race against the clock, trying to correct the
curve, stopping progression of the curve and finding the best pain management options. This is
especially the case in adolescents but is also a problem in adults because idiopathic scoliosis can
continue to progress after skeletal maturity is achieved (Negrini et al. 2015). In fact, over 60% of
idiopathic scoliosis patients experience progression of their spinal curve (Negrini et al. 2015). With
a wide variety of treatment options it can be overwhelming and difficult to decide which treatment
is best for each patient to help pain management. Non–surgery treatment options for pain
management include, physical therapy, chiropractic treatment and bracing.
Introduction

Physics Of Soccer Research Paper
Ali Collins
December 3rd, 2015
Physics 211
Physics of Curving a Soccer Ball When a soccer game is on the line between becoming Champions
and only being second best, a free kick is one of the most exciting parts of the game of soccer.
Players can curve the flight of the ball into the net by adding a spin to the ball. ne game that all fans
will remember is the free kick taken by Roberto Carlos in 1997 in the tournament in France. The
ball was played 30 meters from his opponents' goal and just a tad to the right. The momentum
Carlos had behind the ball was so hard that the ball went flying past the wall of defenders by a
meter. Right before the ball went out of bounds it magically curved to the left side and entered the
right side of the goal. ... Show more content on Helpwriting.net ...
The lift force is the upwards or sidewards force that is responsible the Magnus Effect. Magnus
Effect is a generation of a sidewise force on a spinning cylindrical or spherical solid (soccer ball)
immersed in a fluid when there is relative motion between the spinning body and the fluid (Magnus,
n.d.). As the ball is traveling through the air, it creates a whirlpool of fluid around itself and will
experience a force perpendicular to the line of motion: S is for the air resistance coefficient across
the surface of the ball. is for angular velocity vector. is for resulting force (Magnus, n.d.). V is for
velocity of object:
The Magnus Effect is the reason the ball curves through the air. When a ball spins through fluid
matter, it creates a barrier of air, kind of like a force field (Physics, n.d.). This effect will make the
ball travel with just fast enough speed and curve in the air to trick and beat the goalkeeper. Most
people think the size of the player will affect the outcome of the ball. This is not necessarily true.
The mass of a professional soccer ball is about m=0.4 kg. The velocity of the ball equals the
velocity of the leg multiplied by the fraction of the mass of the leg over the total mass of the leg and
the ball, multiplied by 1 +

eco/365 week 2 individual
Supply and Demand Simulation ECO 365 Supply and Demand Simulation The Supply and Demand
simulation was reviewed on the student website demonstrated the concepts of the concepts of
microeconomics and macroeconomics. The principles of microeconomics and macroeconomics
were explained and applied throughout the simulation demonstrate the rationale for the shifts in the
supply and demand curve. Each shift is analyzed showing the effects of the equilibrium price,
quantity, and decision making process for the simulated company represented. The concepts
encountered in the simulation provide an opportunity to better understand how each can be applied
to my current workplace. The Scenario provides an ... Show more content on Helpwriting.net ...
This is a result of a demand shift to the left related to a lack of available tenants for the apartments.
The property management company has to decrease rental rates allowing the quantity supplied to
decrease as well (University of Phoenix, 2012), creating a downward swing in the supply curve. The
price of rentals decreased to create less quantity that is available for rent creating equilibrium and a
decrease in surplus. This is a difficult decision to lower price significantly but will continue to create
revenue for the property management company while decreasing supply of vacancy. Throughout the
simulation I encountered instruction that I can apply the use of supply and demand at my workplace.
As a soldier, leader and educator, supply and demand is represented by available student seats, man
hours, supply, and equipment. The cost of educating one soldier costs $600 plus or minus. In today's
economy, we are forced to become creative in determining the best means to decrease costs.
Although our demand remains consistent the military must meet the supply of inventory that is
available. As demand decreases the military also has to decrease supply on hand while also cutting
labor hours of not only soldiers as well as civilian personnel to remain profitable. When the demand
increases for our services the need for increased personnel and the supplies also increases. The
simulation also showed me several ways businesses can operate by simply adjusting supply to meet

Gel Hydrogels Used as Scaffolding in Construction
Gel hydrogels can be considered as promising materials to be used as scaffold in tissue engineering
since they present a load–bearing capacity and suitable mechanical properties.6 Almost all the
measurements on the mechanical properties of hydrogel materials have used true stress–true strain
or engineering stress–engineering strain definitions on the grounds of hydrogel incompressibility.26
However, there is no agreement as to which stress–strain definition should be adopted to determine
the mechanical behavior of hydrogel materials in a compressive testing machine. Hydrogels are
known to exhibit elastic behavior,27 hence, the elastic modulus, maximum stress and strain of Gel
hydrogels are investigated. The stress–strain definition may substantially affect the measured
mechanical properties, including elastic modulus, maximum stress and strain. A Gel hydrogel is
illustrated in Figure 1. A cylindrical chamber was used to form a suitable shape for the samples.
Samples were set on the lower plate of the testing machine and compressed by the upper plate
which was connected to a load cell until failure. Figure 2 shows various stress–strain curves using
four definitions for strain (engineering strain, Green–St. Venant strain, Almansi–Hamel strain, and
true strain) and three definitions for stress (second Piola–Kirchhoff stress, engineering stress, and
true stress). This figure shows that the way in which stress–strain is defined has a profound effect on
the stress–strain

Fixed Income in a Financial Crisis (A): US Treasuries in...
Fixed Income in a Financial Crisis (A): US Treasuries in November 2008 Academic Year 2013/2014
Executive Summary In the first part of our report, we investigate if a 35 basis points yield spread
represents mispricing of two bonds, both with the same maturity but one with a coupon rate of
10.625% and the other 4.25%. Our investigation also determines if the yield spread represents an
arbitrage opportunity. In our investigation, we calculate the theoretical yield spread between the two
bonds and compare the figure with the observed yield spread. It is cited in the case that the observed
yield spread could be due to different liquidity premium for each bond or simply due to different
durations. Through our calculations, we discover ... Show more content on Helpwriting.net ...
Through this method, we obtained theoretical yields of the 4.25% coupon bond and 10.625%
coupon bond to be 2.899% and 2.639% respectively. The corresponding theoretical prices of the
bonds are $108.27 for the 4.25% coupon bond and $149.31 for the 10.625% coupon bond (see Table
1 above). Comparing each bond's theoretical yield and price to its actual yield and price, we find
that both bonds are underpriced. However, this alone is insufficient to conclude that an arbitrage
opportunity exists, since our calculated theoretical prices ignore the effects of liquidity premium.
As, in this exercise, we are unable to calculate what the true liquidity premium for each bond should
be, we consequently do not have a true price for each bond to compare with and ascertain whether
each bond is underpriced (ie. both the theoretical and actual prices may not be the true price).
Nonetheless, we have calculated the implied liquidity premium for each bond as the difference
between the theoretical yield and actual yield (see Table 1 above). Yield Spread To better determine
if an arbitrage opportunity exists, the theoretical and actual yield spreads of both bonds can be
compared. This determines whether both bonds are properly priced relative to each other,
eliminating the need to have true prices for both bonds to determine if each bond is rightly priced.
Based on our

Notes On The Cash Rate
Q1. Explain what the cash rate is in simple terms. How do these rates influence the levels of other
interest rates in the economy?
The cash rate is a special benchmark interest rate set by the Reserve Bank of Australia (RBA) based
on its inflation target that is charged on overnight loans to commercial banks (Lowe, 2009). Because
the amount of money a bank has fluctuates daily based on its lending and borrowing activities, the
central bank always lends money overnight to banks that experience a shortage. Therefore, the
overnight rate, that is, the cash rate here, could be the rate targeted by the central bank to influence
monetary policy.
FIGURE 1: THE YIELD CURVE Figure 1 illustrates that the cash rate appears at the beginning of
the ... Show more content on Helpwriting.net ...
In the short run, monetary policy affects economy largely by influencing interest rate. In the long
run, changes in the money supply affect the price level, though with an uncertain lag.
FIGURE 2: EFFECT OF MONEY SUPPLY When confronted with an increase in the demand for
money, monetary authorities can chose to do nothing, thereby allowing interest rate to rise, or they
can increase the money supply enough to hold the interest rate constant. It can be seen in the Figure
2, if monetary authorities do nothing, the quantity of money in the economy remains at M, but the
interest rate rise because the greater demand for money increase the equilibrium combination from
E up to E1. Alternatively, monetary authorities can try to keep the interest rate at its initial level by
increasing its supply of money from Sm to Sm'. In terms of possible combination of the money
stock and the interest rate, monetary authorities must choose from points lying along the new money
demand curve D'.
A growing economy usually needs a growing money supply to pay for increase in aggregate output.
If monetary authority maintains a constant growth in the money supply, and if velocity remains
stable, the interest rate fluctuates unless the growth in the supply of money each period just

Business Review By David A Garvin, On Building A Learning...
INTRODUCTION: The two articles talk about the practices and methods for an organization to
thrive in an increasingly competitive global marketplace. 1) Introduce the content of the readings
and define any of the pertinent terminology. The two articles talk about the several terminology and
facts regarding building a learning organization. The Harvard Business review by David A Garvin,
on Building a Learning Organization, suggests about five organizational learning practices. To
transform a company into a learning organization, Garvin recommends mastering five activities:
Solving problems systematically Experimenting with new approaches to work Learning from past
experience Learning from other companies and from customers Transferring knowledge throughout
an organization. Garvin's article mentions that these activities help an organization to make enduring
improvements that can result in qualitative gains. The first few pages of the article emphasize on the
importance of the meaning, measurement and management of a learning organization. The rest of
the article focuses on the main Building blocks that aid an organization to improve and become a
learning organization. Garvin gives a lot of examples to elaborately explain his theory on a learning
organization. The article also emphasizes on the stages of knowledge, and the half–life curves that
can be used to compare between the performances of a company's divisions. The second article is
about 9 best "best"

Market Eqaulibrium
. Eye–de–ho Potatoes is a product of the Coeur d=Alene Growers= Association. Producers in the
area are able to switch back and forth between potato and wheat production depending on market
conditions. Similarly, consumers tend to regard potatoes and wheat (bread and bakery products) as
substitutes. As a result, the demand and supply of Eye–de–ho Potatoes are highly sensitive to
changes in both potato and wheat prices. Demand and supply functions for Eye–de–ho Potatoes are
as follows: QD = –1,450 – 25P + 12.5PW + 0.2Y, (Demand) QS = –100 + 75P – 25PW – 12.5PL +
10R, (Supply) where P is the average wholesale price of Eye–de–ho Potatoes ($ per bushel), PW is
the average wholesale price of wheat ($ per bushel), Y is income (GNP ... Show more content on
Helpwriting.net ...
As self–serve increases in popularity, a decrease, or leftward shift, in the demand for unskilled labor
occurs. D. Holding all else equal, a fall in interest rates will increase the attractiveness of capital
relative to labor. Employers can be expected to substitute capital for the now relatively more
expensive labor. A decrease or leftward shift in the demand for unskilled labor will result. Of course,
this influence can be mitigated to the extent that lower interest rates spur capital investment and a
subsequent increase in employment opportunities. E. An increase in the minimum wage will have
the effect of decreasing the quantity demanded of unskilled labor, while at the same time increasing
the quantity supplied. The first involves an upward movement along the demand curve, while the
second involves an upward movement along the supply curve. P3.3 Supply Curve Determination.
Olympia Natural Resources, Inc., and Yakima Lumber, Ltd., supply cut logs (raw lumber) to lumber
and paper mills located in the Cascades Mountain region in the state of Washington. Each company
has a different marginal cost of production depending on its own cost of landowner access, labor
and other cutting costs, the distance cut logs must be shipped, and so on. The marginal cost of
producing one unit of output, measured as one thousand board feet of lumber (where one board foot
is one

Demand & Supply , Examine the Argument in Favour & Against...
* BUSINESS DECISION ANALYSIS* * London* *School*of Accountancy & Management
Course Instructor: Prof. Armaan Nehal. N. Panchasara (ID no: ST0005944) Masters of Business
Administration Assignment: A * (Using Demand & Supply: examine the arguments in favour &
against minimum wage law in UK*) * *Total words: 1,402 Demand It refers to the willingness and
ability of buyers to purchase goods and services at different prices. Supply It refers to the
willingness and ability of sellers to provide goods and services for sale at different prices What* *is
minimum wage? A minimum wage is the lowest monthly, daily or hourly that employers may
legally pay to their employees or ... Show more content on Helpwriting.net ...
Does not have a substantial effect on unemployment compared to most other economic factors and
so it does not put any extra pressure on welfare systems. According to Historical evidence it is
noticed at current levels, that it neither hurts businesses nor reduces job creation. A study of U.K.
states showed that businesses' average and annual payrolls grow faster and employment grew at a
faster rate in UK with a minimum wage imposed, the study showed a correlation, but did not prove
causation to claim. Increases the work ethic for those who earn very little, as employers demand
more return from the higher cost of hiring these workers. Arguments in Against the Minimum wage
law: Discourages further education among the poor by encourage people to enter the job market.
The National Minimum Wage had a negative impact on the staffing levels within our retail stores.
The stores are operating for fewer hours as compared to they were several years ago in order to
absorb the impact of the strong increases. Businesses spend fewer amounts on training their
employees. Reduces profit margins of business owners as employing minimum wage workers, thus
it encouraged to move to businesses that do not employ low–skill workers. Businesses try to
compensate their effects by raising

Essay on Microeconomics Quiz Review
Chapter 9
1. All firms, no matter what type of firm structure they are producing in, make their production
decisions based on where: marginal revenue equals marginal costs.
2. According to the table below, when profits are maximized, profits are equal to: $2.
3. Many economists believe that the market for wheat in the United States is an almost perfectly
competitive market. If one firm discovers a technology that makes their wheat taste better and have
fewer calories than all other wheat offered in the market, the wheat market would become less
competitive because: the products would no longer be similar in the wheat market.
4. When talking about economics profits in a perfectly competitive market, the difference between
the ... Show more content on Helpwriting.net ...
short–run market supply; left; increase.
21. Which of the following lists the three main characteristics of a competitive market? many buyers
and sellers, similar products, easy entry into the market
22. Total revenue minus total cost equals: profit.
23. A firm participating in a competitive market with costs described in the table below would
always shut down: if the price is equal to $2.
24. When revenue is insufficient to cover cost, the firm suffers a loss.
25. Sunk costs: are costs that have been incurred as a result of past decisions.
26. According to the figure below, this firm would shut down in the long run if: the price fell below
$5.
27. One difference between implicit costs and explicit costs is that: explicit costs are included in
accounting profits, whereas implicit costs are not.
28. Holding all else constant, an increase in the price of hot dogs would cause: the marginal revenue
(MR) curve in the market for hot dog buns to decrease.
29. Marginal revenue is: the change in total revenue when the firm produces additional units.

30. According to the figure below, if the firm is maximizing profits, profit is represented by the area:
(A – B) × C.
31. Firms will always stay in the market if: the price they charge is greater than their minimum
average variable cost (AVC).
32.

The Relationship Between Inflation And Unemployment On Growth
INTRODUCTION
1.1 Background of the Study
Three ultimate macroeconomic goals which every government strives to achieve in order to ensure
sound macroeconomic policy are maintenance of relative stability in domestic prices, attainment of
a high rate of employment or full employment and achievement of a high rapid and sustainable
economic growth. The relationship between inflation and unemployment on growth remains a
controversial one in both theory and empirical findings. Originating from the Latin American
context in the 1950s, the issue has generated an enduring debate between structuralists and
monetarists. The structuralists believe that inflation is essential for economic growth, whereas the
monetarists see inflation as detrimental to economic progress. There are two aspects to this debate:
(a) The nature of the relationship if one exists and
(b) The direction of causality.
Friedman (1973) succinctly summarized the inconclusive nature of the relationship between
inflation and unemployment on economic growth as follows: ―historically, all possible
combinations have occurred: inflation and unemployment with and without development, no
inflation and unemployment with and without development. The main problems facing the economy
of Iraq today are unemployment and inflation. These problems are persistently complex and cause
economic and social dilemma to the economy as a whole. The inability of government to provide a
lasting solution to these twin challenges has contributed

The Key to Cost Reduction

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