economic business 1

d) Break even sales change that would change the profits by the same amount as a reduction in price.

4) For each article describe causes of changed price and the effects of the changed price.

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1. (10 pts.) Stella Ann Freeman is having a difficult time deciding whether or not to purchase a new car. How would understanding the concept of opportunity costs help her make a decision?

1. Mark the main flows of goods and money in the diagram (above) and employ a key or table of descriptive elements to explain your answer.

Australian Bureau of Statistics (ABS) (2017b), “Consumer Price Index: Concepts, Sources and Methods. Information Paper 6401.0”, Canberra: ABS

3 Answer A A tax can be used to ensure that those who generate harmful effects pay for them rather than third parties. 4 Answer B Public goods cannot be left to market forces as they are non-rival and non-excludable. A and C refer to merit goods and D to demerit goods. 5 Answer B More training, if in appropriate areas, should enable workers to move more easily from declining to expanding industries. A would help to reduce geographical immobility. C and D would be likely to increase demand and employment. 6 Answer B The socially optimum output is where MSB equals MSC, at point W. To achieve this output costs need to rise to incorporate external cost. The marginal external cost at W is represented by the gap between MSC and MPC.

As the price of goods and services are constantly changing, it is important for us to understanding the Consumer price Index. Consumer price index (CPI) is a measure of the weighted average change over time in the purchase price of consumption by urban households for a set of goods and services. The Bureau of Labor Statistics (BLS) has arranged all the expense items into eight major categories, such as food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, along with other goods and services. The CPI is often referred as the cost-of-living index, but it doesn’t measure the exact data. There is no official result of cost-of-living index by the government, so CPI is as close as it gets.

Assume you at currently at equilibrium marked by the “x” and the vertical line is the

Figure 9.2 ISC manages huge volumes of fan data compiled from the Daytona 500 and all other

Assume that a cargo ship carrying the merchandise of a cloth merchant has been wrecked. Such a setback will be accounted as the merchant’s:

It is a seriously problem are existed in China for a long time, which China is closer to being a traditional, command, or market economy. Actually, there are two main types of economy around the world what are the command economy and the market economy. China is market economy more than traditional and command economy. People always control and change some rules of economy who is the leader or government of China cause many economy issues. As we know, the departed China used to have command economy that the government have power to control and decided all economy system, which is called Communist Party. However, there was a big change in Chinese economy when Third Plenary Session of the 11th Central Committee of the Chinese Communist Party

Nowadays, inflation is a word very often used by society. In many cases, citizens can’t really define inflation and when they do so, they define other economic terms that can get confused with inflation.

In the short run, the average total cost will decrease initially as Sony begins manufacturing their new controller, due to the modification in the amount of total product increasing for each following unit of variable input. This will continue until reaching the minimum level and will then start to increase. This is due to the modification in the amount of total product decreasing for each following unit of variable input and as the number of employee’s increase the amount of total product for each additional employee will decrease more than the amount of total product for the previous employee. This begins altering the marginal cost so consequently the average variable and total cost.

On October 3, 2000, E-Centives, incorporated in the United States, made an initial public offering on the Swiss Stock Exchange’s New Market. The company raised approximately US $ 40 million. The E-Centives offering circular stated that no offers or sales of the company’s common stock would be made in the United States, and that there would be no public market for the common stock in the United States after the offering.