A Concise Intro To Logic
12th Edition
ISBN: 9781305147775
Author: Hurley
Publisher: Cengage
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Economic models:
are of limited use because they cannot be tested empirically.
are limited to variables that are directly related to one another.
emphasize basic economic relationships by purposefully simplifying the complexities of the real world.
are unrealistic and therefore of no practical consequence.
Explain how economic growth affects the valuation of a stock.
How are the interest rate, the required rate of return on a stock, and the valuation of a stockrelated?
Assume that the expected inflation rate has just been revised upward by the market. Would the required return by investors who invest in stocks be affected? Explain.
if your assessment of the business cycle is more accurate than of your competitors you would chose shares of defensive companies when macroeconomic environment is……..1. Optimistic2. Pessimistic3. Stable4. Between stable and volatile
it is commonly assumed that a recession occurs when a GDP declines by twoconsecutives…1. Months2. Quarters3. Years4. Decades
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Define economics, explain why scarcity iscentral to economic decision making, andidentify the major ways of measuring economicactivity.
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Why do managers make bad decisions?
Identify a problem in economics (most preferably a pressing issue in current context), and find a solution to the problem by following the decision making process:
Identify the Problem
Determine the objective(s)
Identify at least five (5) possible solutions
Using your judgement, select the best possible solution.
Why do you think that the solution you chose in (#2) is the best possible solution?
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The paradox of savings discourages too much savings because it affects economic growth. However, the Solow-Swan model encourages more savings for economic growth. Is there a “disconnect” between the two?
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How important is for a business student to know the economic indicators?
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Read the above passage. How does this relate to business, and what are some solutions to this problem? What is the purpose of this passage and how does it affect the business management right now?
Americans’ collective credit card balances totaled $986 billion at the end of last year, up $61 billion from the previous quarter, according to the Federal Reserve Bank of New York’s quarterly household debt report. Overall, U.S. household debt—including mortgage, auto, student loan, and credit card debt—grew to $16.90 trillion at the end of 2022.
That $61 billion increase in credit card debt, however, was the largest quarterly jump recorded in the history of the N.Y. Fed’s data, which dates back to 1999. Additionally, the total accumulated credit card debt surpassed the pre-pandemic record of $927 billion.
“Credit card balances grew robustly in the fourth quarter, while mortgage and auto loan balances grew at a more moderate pace, reflecting activity consistent with pre-pandemic levels,”…
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