For example‚ individuals make the best use of their utility and skill‚ so they can earn more money. The second assumption is that firms always try to maximize the money they earn. For example‚ if an entrepreneur had two business choices that he could make‚ he would pick the business choice that he thinks would be more profitable to him. Price is also very significant in the market economy. If there is less of a product‚ but more people demanding it‚ then‚ of course‚ the price will rise. If there is
Premium Economics Supply and demand Rhinoceros
revenue from import tariffs. In order to offset the revenue loss‚ the government hopes to collect more revenue from a growing economy. WTO membership will create opportunities for Vietnam to attract foreign direct investment‚ expand markets‚ develop business and increase exports. Economists think that as Vietnam opens its market under WTO rules‚ prices should fall further. For example‚ allowing more foreign producers into Vietnam will increase the supply of goods and services. Economists also believe
Premium Economics International trade General Agreement on Tariffs and Trade
Business Economics 201 Chapter 23: Measuring a Nation’s Income Macroeconomics: a study of the nation’s economy as a whole with a goal of explaining the changes that affect many households‚ firms‚ and markets simultaneously GDP: measures the total income of everyone in the economy and the total expenditure on the economy’s output of goods and services income must equal expenditure every transaction has a buyer and seller Can be computed by adding up expenditure by households or total income
Premium Inflation Monetary policy Economics
Price - Elastic Products With the question as stated: When would you want to own a business that sells price-elastic products? I think that any time could be a good time to own a price-elastic business. Obviously‚ the most opportune time would be when the economy is in the state that it is in today. The best kind of business to be in would be a store like Wal-Mart. Because the fact that Wal-Mart can offer almost countless products for sale‚ the price point on any one product can cause a great
Premium Marketing Economics
Classical and Keynesian Economic Theories Economics can be defined as a social science concerned primarily with description and analysis of the production‚ distribution‚ and consumption of goods and services. There are two main schools of thought when it comes to economics: Classical and Keynesian economics. Each theory takes a different approach to the economic study‚ but neither approach is flawless. First‚ looking at the Classical economics theory‚ it is based largely on the thought that free
Free Economics Macroeconomics Keynesian economics
Global Economic Environment Group Presentation Written Report (Group 1) Christy Lai Kei Kwan 12119785D 30th September 2013 Question 1 (a) How has Apple capitalized on the globalization of production? What advantages does manufacturing in China offer the company? ANS: Globalization has been a heat topic in these past years. Many international companies will use this advantage for their own production‚ and Apple is definitely one of the significant examples. Below shown are the ways that
Premium Outsourcing Globalization
| 310‚000 | Administrative expenses | 90‚000 | Interest expense (bank loan) 90‚000 | Legal expenses to start business | 56‚000 | Income taxes | 330‚000 | TOTAL | 1‚586
Premium Costs Microeconomics Economic cost
First Midterm Study Dr. Reza Fazeli Econ.20A 1. The phenomenon of scarcity stems from the fact that a. most economies’ production methods are not very good. b. in most economies‚ wealthy people consume disproportionate quantities of goods and services. c. governments restrict production of too many goods and services. d. resources are limited. 2. Approximately what percentage of the world’s economies experience scarcity? a. 10% b. 40% c. 85% d. 100% 3. The adage‚ "There is no such thing
Premium Supply and demand
Running head: ANTITRUST PRACTICES AND MARKET POWER Antitrust Practices and Market Power A slight inkling of antitrust by the consumers can easily destroy a company’s reputation; bring down years of hard work and dedication. This paper highlights the case of Apple Inc. There was a recent case US vs. Apple‚ that has been on news media. “The Justice Department today released some of the comments it received regarding the ongoing Apple e-book price-fixing case‚ and many of those
Premium Sherman Antitrust Act Cartel History of the United States
economics is best defined as the economic study of how business can B. decide on the best use of scarce resources. Question 2 1. Which of the following statements best illustrates the use of the market process in determining the allocation of scarce resources? A. "We should consider shifting to products where we can earn more money." Question 3 1. One key question from the "One lession of business" might be A. should the firm be in the business in which it is operating. Question 4 1. Opportunity
Premium Costs Cost Economics