Economics of General Motors The role of the automotive industry in U.S economy is quite important. Given the multiplier effect‚ its impacts on other industries such as glass‚ steel and rubber‚ so it is considered an industry that shows some level of welfare in the economy one that has a greater share of production in manufacturing. The automobile industry provides thousands upon thousands of jobs‚ and in the last century the automobile has revolutionized the world‚ and become an indispensible
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This pack of ECO 204 Week 4 Quiz consists of: 1. Marginal damage cost is the additional harm done by increasing the level of an externality-producing activity by one unit. additional cost to society resulting from a privately owned firm producing one more unit of a product. amount a consumer pays to produce an additional unit of a good. additional cost to society resulting from a consumer consuming one more unit of a good. 2. Tax shifting ________ . is the way in
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state‚ habitus helps mold one’s "natural propensity" and "sense of one’s place." However‚ this is not the only compass of habitus but instead it is an "internalization of externality." In sum‚ Bourdieu’s idea of habitus claims that an individual’s inclinations are a direct result of how one internalizes externalities. These externalities are established by two forms of capital: economic and cultural. The two capitals establish social position in society because the more economic and cultural capital one
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Ryan Cook POSI 4322 3:30 PM Market Failure Ideally‚ a free market is the means by which people exchange goods and services in a safe and unrestricted context. In a liberal democracy‚ such as that of the United States‚ it is accepted to varying degrees that government has a role in ensuring that the “free” component of markets does not develop into a force which undermines the “safe” component. Therefore‚ some restrictions are in fact necessary. This paradox of government restricting certain behaviors
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Recall that in the Harrod-Domar‚ Kaldor-Robinson‚ Solow-Swan and the Cass-Koopmans growth models‚ we have maintained‚ either explicitly or implicitly‚ that technical change is "exogenous". In the Schumpeter version‚ this was not true: we had "swarms" of inventors arising under particular conditions. The Smithian and Ricardian models also had technical change arising from profit-squeezes or‚ in the particular case of Smith‚ arising because of previous technical conditions. Allyn A. Young (1928)
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Marginal Costing is ascertainment of the marginal cost which varies directly with the volume of production by differentiating between fixed costs and variable costs andfinally ascertaining its effect on profit. The basic assumptions made by marginal costing are following: - Total variable cost is directly proportion to the level of activity. However‚ variable cost per unit remains constant at all the levels of activities. - Per unit selling price remains constant at all levels of activities. -
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Executive Summary This report seeks to explore and discuss the incentives for protection and the role of the World Trade Organisation (WTO). The report will first cover a definition of the key terms‚ followed by an analysis of the factors that contribute to protectionism. WTO will then be introduced and the relevance of the organisation and its policies will be evaluated. 1. Definitions of terms WTO: World trade organization The WTO provides a forum for negotiating agreements aimed at reducing
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This is supported by Hubbard et al. (2013‚ p. 130) who state that government interventions attempt to increase market’s economic efficiency. The government can impose a fat tax that equals to the obesity cost to eliminate the negative externalities. Figure 2 shows that taxation will drive the supply curve up from S1 to S2. Price goes up from P1 to P2 and deadweight loss is internalised. Taxes on unhealthy food may encourage people to lower their consumptions and suppliers to produce less
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1) The Seattle Corporation has been presented with an investment opportunity that will yield cash flows of $30‚000 per year in Years 1 through 4‚ $35‚000 per year in Years 5 through 9‚ and $40‚000 in Year 10. This investment will cost the firm $150‚000 today‚ and the firm’s cost of capital is 10 percent. What is the payback period for this investment? Payback period Using the even cash flow distribution assumption‚ the project will completely recover the initial investment after
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can identify two distinct routes through which scarcity can increase product choice. A person’s demand may be affected by the number of other people who have purchased the good. If this is the case‚ a network externality exists and can be positive or negatives. A positive network externality exists if the quantity of a good demanded by a consumer increases in response to an increase in purchases by other consumers. And negative network are just the opposite. * The first way examines scarcity
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