Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just purchased identical hot new sports cars. Acme Insurance charges a higher rate to insure Bindy than Luciana. This practice is an example of B) price discrimination.
Price discrimination occurs when a firm charges different prices to different consumers for the same product or service, based on their willingness or ability to pay. In this case, Acme Insurance likely perceives that Bindy, an 18-year-old high school graduate, represents a higher risk due to her age and driving experience compared to Luciana, a 40-year-old college graduate. As a result, they charge Bindy a higher premium to account for the increased risk.
It is important to note that price discrimination is not necessarily an unethical practice. Businesses often use this strategy to maximize profits, target different consumer segments, and cover costs associated with providing goods and services.
In the insurance industry, for example, it is common for companies to adjust premiums based on factors such as age, driving history, and the type of vehicle being insured. This allows them to provide coverage to a wide range of customers while managing their overall risk. Therefore, the correct option is B.
The question was incomplete, Find the full content below:
22) Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just purchased identical hot new sports cars. Acme Insurance charges a higher rate to insure Bindy than Luciana. This practice is an example of
A) collusion
B) price discrimination.
C) two-part tariff.
D) bundling.
E) none of the above
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M Thino PES on Emily Ostan economica profesa Brown Oropes bout several aspects of parenting 1 stores the concept of marginal MUI dising parenting and childcare what activly does she refer to and what
"Marginal MUI" stands for marginal maternal utility of investment. This is a term used in economics to describe the additional benefit or utility that a parent receives from investing in their child's welfare.
Based on the terms you have provided, it seems that your question is about Emily Oster, an economist and professor at Brown University, and her views on parenting and childcare.
In particular, you are interested in her concept of "marginal MUI" and what she refers to when discussing it.
According to Oster, "marginal MUI" stands for marginal maternal utility of investment.
This is a term used in economics to describe the additional benefit or utility that a parent receives from investing in their child's welfare.
Essentially, it is the idea that each additional investment made by a parent (such as spending more money on a child's education or healthcare) will have diminishing returns in terms of the benefits gained.
When it comes to parenting and childcare, Oster has argued that parents should be more mindful of the costs and benefits of their investments.
For example, she has questioned the value of expensive baby products or educational toys, arguing that the marginal MUI of these items may not justify their high cost.
Instead, Oster suggests that parents should focus on the investments that have the greatest impact on their child's well-being, such as spending time with them, providing a stable and supportive home environment, and ensuring they have access to good nutrition and healthcare.
Overall, Oster's concept of marginal MUI provides a useful framework for thinking about the costs and benefits of different parenting and childcare strategies.
By being more mindful of these costs and benefits, parents can make better-informed decisions that will ultimately benefit their children.
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When a firm sells more product that it needs to cover its total costs, it will
When a firm sells more product than it needs to cover its total costs, it will generate a profit. This means that the revenue earned from the additional sales will exceed the total costs incurred to produce those additional units.
In economics, the concept of profit is central to understanding the behavior of firms. Profit is defined as the difference between total revenue and total cost. When a firm's revenue exceeds its total cost, it earns a profit. Conversely, when total cost exceeds revenue, the firm experiences a loss.
To generate a profit, a firm must produce and sell enough units to cover both its fixed and variable costs. Fixed costs are costs that do not vary with the level of output, such as rent, while variable costs change with the level of output, such as raw materials. Once a firm has covered its total costs, any additional units sold will contribute to the profit margin.
Overall, selling more products than the firm needs to cover its total costs is essential for generating profits and staying competitive in the market.
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What quality distinguishes each of the five kinds of LEED building certifications from one another?
answers
project types
health concerns
building uses
environmental considerations
Option (d), Each of the five types of LEED building certifications is distinguished from one another by environmental factors and quality.
What distinguishes LEED certification from alternative options?While WELL Certification concentrates on people's health and wellness, LEED Certification concentrates on environmental impact and sustainability. Both certificates require the use of healthy, ecologically friendly construction techniques as well as the continuation of building projects after a facility has been abandoned.
How many structures have LEED certification?LEED projects, which number over 100,000 and account for 11 billion gross square feet of space across more than 180 countries, are redefining the built environment. Hospitals, homes, museums, schools, and stadiums all have LEED projects. This amount consists of: Except for Antarctica, all continents are actively working on projects.
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popular championships or tournaments that take place only at certain times, such as once a year or once every four years
Hallmark sports event is a popular championships or tournaments that take place only at certain times, such as once a year or once every four years.
The term "hallmark event" is used to describe a recurring event that possesses such significance, in terms of tradition, attractiveness, image, or publicity, that the event provides the host venue, community, or destination with a competitive advantage. Examples of hallmark events include popular championships or tournaments that take place only at specific times, such as once a year or once every four years. The event and the destination may eventually become inseparable over time.
The Olympic Games of today have always been a global event: a celebration of the athletic competition between athletes from numerous nations. The Olympics can also be considered a globalized "hallmark event" in a time when the pace of global integration of the world's economic and cultural systems is accelerating.
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Use the AS/AD model to show what will happen to the economy if the Fed were to raise its target rate. Assume that the economy begins in the intermediate region of the AS curve. Comment on what happens to GDP, the price level, and employment.
If the Federal Reserve (Fed) were to raise its target rate, it would lead to a decrease in the money supply in the economy, which would result in a decrease in aggregate demand (AD).
The AS/AD model shows that this would lead to a shift in the AD curve to the left, resulting in a decrease in both GDP and the price level.Assuming the economy begins in the intermediate region of the AS curve, the decrease in AD will result in a decrease in both GDP and the price level.
The decrease in GDP is due to a decrease in spending, as firms and consumers will have less access to credit, and will thus spend less. The decrease in the price level is due to a decrease in demand, which will lead to a decrease in prices as firms try to attract buyers.
In terms of employment, the decrease in GDP will lead to a decrease in employment as firms will need to cut costs in order to stay profitable. This decrease in employment will lead to higher unemployment rates, which will further decrease aggregate demand as consumers have less income to spend.
Overall, the Fed's decision to raise its target rate would lead to a decrease in both GDP and the price level, as well as an increase in unemployment. The AS/AD model shows that this decrease in aggregate demand would be due to a decrease in the money supply, which would result in less access to credit and thus less spending.
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how to sell sports towels on internet or on otherplatforms.
7. . How to sell sports towels or any items online or on the internet.
1. Determine the Brand Name and Products to be Sold. ...
2. Define Unique Selling Points. ...
3. Implement a Content Marketing Strategy. ...
4. Selling at Ecommerce/Marketplace. ...
5. Implement a Word of Mouth Marketing Strategy. ...
6. Actively Selling on Social Media. ...
7. Take advantage of the Ads feature on Social Media.
Which theory predicts that employees will direct their work effort towards behaviors that they believe will lead to desired outcomes?
a. Expectancy theory
b. Equity theory
c. Two-factor theory of motivation
d. Psychological contract theory
Answer: c is the answer
Explanation:
A key limitation of ratio measures of innovation is the time lag between the investment and the resulting output.
True or False?
True. A key limitation of ratio measures of innovation is the time lag between the investment and the resulting output. This can make it difficult to accurately assess the effectiveness of innovation efforts at a specific point in time.
Innovation refers to the process of creating and implementing new ideas, products, or services that generate value for individuals or organizations. It involves developing new approaches, methods, or technologies that can improve efficiency, effectiveness, or quality of life. Innovation can take many forms, ranging from incremental improvements to existing products or services to disruptive technologies that completely transform industries. It requires a combination of creativity, knowledge, skills, and resources to generate new ideas and turn them into tangible outcomes. Innovation can occur in various fields, such as business, technology, healthcare, education, and social services. It can be driven by a variety of factors, such as changes in customer needs or preferences, emerging technologies, competitive pressures, or societal trends.
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Gracie Art Gallery has total assets of $263,450, net working capital of $28,523, owners' equity of $128,659, and long-term debt of $105,000 What is the value of the current assets?
Question 20 options:
$85,413
$31,314
$63,595
$79,628
$105,000
To find the value of current assets, we need to use the formula:
Current Assets = Net Working Capital + Current Liabilities
We are not given the value of current liabilities directly, but we can calculate it using the formula:
Total Assets = Current Assets + Fixed Assets
Rearranging the formula, we get:
Current Assets = Total Assets - Fixed Assets
We are given that:
Total Assets = $263,450
Owners' Equity = $128,659
Long-Term Debt = $105,000
Using the formula for Total Assets, we get:
Fixed Assets = Total Assets - Current Assets
Fixed Assets = $263,450 - Current Assets
We are not given the value of Current Assets, but we can use the formula for Owners' Equity:
Owners' Equity = Total Assets - Total Liabilities
Rearranging the formula, we get:
Total Liabilities = Total Assets - Owners' Equity
Total Liabilities = $263,450 - $128,659
Total Liabilities = $134,791
We know that Long-Term Debt is a part of Total Liabilities, so we can calculate Current Liabilities as:
Current Liabilities = Total Liabilities - Long-Term Debt
Current Liabilities = $134,791 - $105,000
Current Liabilities = $29,791
Now we can use the formula for Current Assets:
Current Assets = Net Working Capital + Current Liabilities
Current Assets = $28,523 + $29,791
Current Assets = $58,314
Finally, we can use the formula for Fixed Assets to find their value:
Fixed Assets = Total Assets - Current Assets
Fixed Assets = $263,450 - $58,314
Fixed Assets = $205,136
Therefore, the value of current assets is $58,314.
Answer: $58,314
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ECONOMICS - Moral Hazard1. At a restaurant offering an "All You Can Eat Buffet" for afixed price, an example of "adverse selection" might be (choosebest answer): Avoiding buffet items a patron do not likeA busload of senior citizens with small appetites arrivesAfter dining, a patron secretly puts food in a bag to take home and eat laterAfter tasting the food, a patron decides it is really good and eats a lotA busload of high school athletes with enormous appetites arrivesBottom of Form2. At a restaurant offering an "All You Can Eat Buffet" for a fixed price, an example of "moral hazard" might be (choose best answer):The restaurant has a well-known reputation for using low quality ingredients to cut costsA busload of senior citizens with small appetites arrivesAfter dining, a patron secretly puts food in a bag to take home and eat laterA diner accidentally leaves his wallet at the buffetA busload of football players with enormous appetites arrivesBottom of Form3. Banks issuing credit cards usually impose limits on how much credit they will extend to cardholders. A good reason for imposing a limit might be to (choose best answer):There is a moral hazard problem with no limit, since borrowers are more likely to spend past their ability to pay, leaving the bank to cover the cardholder’s pending excesses.There is a moral hazard problem where the bank repossesses the cardholder’s car that was purchased using the bank issued credit cardThere is an adverse selection problem where more risky cardholders are more likely to apply for cards with limitsThere is an adverse selection problem where more risky cardholders carry lots of credit cardsThe limit is a screen since riskier borrowers are more likely to accept the limit4. Which of the following actions would best resolve the principal-agent problem?Allowing the agent to make their own decisions on behalf of the principal without paying close attention in order to build trustAvoiding stock ownership in order to align agent goals with those of principalThe principal should offer a bond to the agent to provide safety in case of outcomes adverse to the agentProviding piece rates / commissions to the agent so that they can have a claim on the same outcome as the principal
After dining, a patron secretly puts food in a bag to take home and eat later is an example of moral hazard in an "All You Can Eat Buffet" because the patron has no incentive to limit their consumption since they paid a fixed price for unlimited food.
Moral hazard is a situation where one party takes additional risks or behaves recklessly because they know that someone else will bear the cost of those actions. In economics, it is most commonly applied to situations where one party has more information or control over a transaction than the other party, leading to an imbalance of incentives. For example, in the case of insurance, moral hazard can occur when individuals are more likely to take risks or engage in reckless behavior because they know they are protected by insurance. In the case of a "All You Can Eat Buffet," moral hazard can occur when customers have no incentive to limit their consumption since they paid a fixed price for unlimited food.
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the process of planning and executing the conception and promotion of gatherings or activities that satisfy individual and organizational objectives is called
Answer: The correct answer is marketing.
Explanation:The process of planning and executing the conception, pricing, promotion and distribution of ideas, goods and services to create exchanges that satisfy individual and organizational objectives is known as marketing.
rafner manufacturing has the following budgeted data for its two production departments. budgeted data assembly finishing overhead cost $ 1,200,000 $ 800,000 direct labor hours 12,000 direct labor hours 20,000 direct labor hours machine hours 4,000 machine hours 16,000 machine hours what is the assembly department overhead rate using direct labor hours?
The assembly department overhead rate using direct labor hours is $100 per direct labor hour.
The assembly department overhead rate using direct labor hours can be calculated by dividing the total overhead cost for the assembly department ($1,200,000) by the total direct labor hours for the assembly department (12,000).
Assembly department overhead rate = Total overhead cost for assembly department / Total direct labor hours for assembly department
Assembly department overhead rate = $1,200,000 / 12,000 direct labor hours
Assembly department overhead rate = $100 per direct labor hour
Therefore, the assembly department overhead rate using direct labor hours is $100 per direct labor hour. This means that for every hour of direct labor worked in the assembly department, $100 of overhead cost is allocated to the products produced in that department.
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The industry supply curve is derived through the horizontal summation of firm:a. Average cost curves.b. Marginal revenue curves.c. Marginal cost curves.d. Demand curves.
The industry supply curve is derived through the horizontal summation of individual firm's c) marginal cost curves.
In a perfectly competitive market, each firm determines its own production quantity based on its marginal cost, which represents the additional cost of producing one more unit of output. By summing the marginal cost curves of all firms in the industry horizontally, we can determine the total quantity supplied by the industry at each price level.
This horizontal summation accounts for the fact that different firms have different cost structures and production capabilities. As the price of the good increases, more firms will find it profitable to produce, and the industry supply curve will reflect the combined output of all these firms. In this way, the industry supply curve helps illustrate the relationship between the market price and the total quantity of goods supplied by the industry.
Therefore, the correct answer is c) marginal cost curves.
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An employee who respects her manager's authority and strives to achieve the organization's goals is demonstrating Fayol's principle of A) order. B) discipline. C) esprit de corps. D) equity. E) remuneration of personnel.
Fayol's principle of discipline states that employees must respect the authority of their managers and obey their instructions.
This means that employees should be willing to follow the policies, procedures, and directives of the organization, and work to achieve the organization's goals.
Discipline is also important for creating an environment of trust and respect between managers and employees, as well as fostering a sense of unity and cooperation amongst the workforce.
Discipline also helps to ensure that employees are productive and motivated to work towards the organization's goals, as well as helping to maintain order in the workplace.
Furthermore, employees need to understand that their actions have consequences and that they must take responsibility for their actions. Ultimately, respect for authority and dedication to achieving the organization's goals are essential components of Fayol's principle of discipline.
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Compared to the unemployed during the Great Depression, persons unemployed in today’s economy are
a. worse off due to higher price levels.
b. better off due to lower price levels.
c. better off due to unemployment insurance.
d. worse off due to higher rates of unemployment in the 1990s
Compared to those who were unemployed during the Great Depression, in today’s economy, persons who are currently unemployed are better off due to lower price levels. Option B is correct.
The answer is B because today's unemployed individuals are better off due to lower price levels, as opposed to the higher price levels experienced during the Great Depression.
During the Great Depression, prices were generally falling due to deflation, making it harder for the unemployed to make ends meet with lower wages and prices. In today's economy, prices are generally higher, but unemployment insurance programs and other social safety nets can provide some assistance to the unemployed.
Additionally, the overall economy and job market may be stronger, providing more opportunities for reemployment. Therefore, option B is correct.
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The best example of a marketable asset below is _____.
Responses
100 shares of XYZ Corporation’s common stock
Broadway Bank’s deposits of $3 million
a two-bedroom house in a small town
a $600,000 life insurance policy
ANSWER:
-100 shares of XYZ Corporation's common stock
The best example of a marketable asset below is 100 shares of XYZ Corporation's common stock.
What is marketable asset?
Marketable assets are those that can be easily bought or sold in the market, and stocks are a prime example of such assets. They can be quickly traded, and their value is based on the company's financial performance and other market factors.
These assets are highly liquid and are considered to have a low level of risk because they can be easily sold or converted into cash. Marketable assets are an important part of an investor's portfolio because they provide diversification and help to manage risk.
Broadway Bank's deposits of $3 million, a two-bedroom house in a small town, and a $600,000 life insurance policy are not as marketable as stocks and may take time or other considerations to sell or exchange.
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The
Federal Reserve can influence financial crises because it
The Federal Reserve can influence financial crises because it has significant control over the monetary policy of the United States.
Through its ability to set interest rates, adjust the money supply, and regulate banks and other financial institutions, the Fed has the power to mitigate the impact of financial crises or even prevent them from occurring.
For example, during a financial crisis, the Fed can lower interest rates to make borrowing cheaper and encourage businesses and consumers to spend more, thereby stimulating economic growth. It can also increase the money supply through measures such as quantitative easing, which injects money into the economy and helps stabilize financial markets.
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A study of the time spent shopping in a supermarket for a market basket of 20 specific items showed an approximately uniform distribution between 20 minutes and 40 minutes. What is the probability that the shopping time will be a. between 25 and 30 minutes? b. less than 35 minutes? c. What are the mean and standard deviation of the shopping time?
a. To find the probability that the shopping time is between 25 and 30 minutes, we need to find the area under the uniform distribution curve between those two values.
The uniform distribution has a constant probability density function between the minimum and maximum values, so the area under the curve between 20 and 40 minutes is 1. The area under the curve between 25 and 30 minutes is (30-25)/(40-20) = 0.25, since that's the fraction of the total range that falls between those two values. Therefore, the probability that the shopping time is between 25 and 30 minutes is 0.25.
b. To find the probability that the shopping time is less than 35 minutes, we need to find the area under the curve up to that value. Again, since the uniform distribution has a constant probability density function, we can find the area by taking the fraction of the total range that falls below 35 minutes. That fraction is (35-20)/(40-20) = 0.75, so the probability that the shopping time is less than 35 minutes is 0.75.
c. The mean of a uniform distribution is the average of the minimum and maximum values, so the mean shopping time is (20+40)/2 = 30 minutes. The standard deviation of a uniform distribution is given by the formula (b-a)/sqrt(12), where a is the minimum value and b is the maximum value. In this case, the standard deviation is (40-20)/sqrt(12) = 3.08 minutes.\
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if a company’s competence level in some activity domain is superior to that of its rivals, it is known as a
If a company's competence level in some activity domain is superior to that of its rivals, it is known as a competitive advantage.
This means that the company has a unique set of skills, resources, and capabilities that allow it to outperform its competitors in a particular area.
A competitive advantage can come from a variety of sources, including technological innovation, efficient production processes, strong brand recognition, and exclusive access to key resources.
Companies that have a competitive advantage are better positioned to succeed in their industry, as they are able to offer superior products or services at a lower cost or with a higher level of differentiation.
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a self-employed attorney uses a country club to entertain clients and spends the following amounts at the club: annual dues 1000, personal meals 1500, business meals 2500, what amount can the attorney deduct against business income on his personal tax return
The self-employed attorney can deduct the following amounts against their business income on their personal tax return:
1. Business meals
2. Annual dues and personal meals are not deductible as they are considered personal expenses and not related to the business.
The self-employed attorney can deduct the cost of business meals at the country club against their business income on their personal tax return. According to the IRS, the deductible amount for business meals is generally limited to 50% of the cost. Therefore, the deductible amount for business meals at the country club would be 50% of $2,500, or $1,250. In summary, the attorney can deduct $1,250 against their business income on their personal tax return.
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From a Porter's Five Forces Industry Analysis, Coke and Pepsi are an example of:A. substitutesB. none of these answersC. fragmented industryD. switching costsE. intense rivals
From a Porter's Five Forces Industry Analysis, Coke and Pepsi are an example of intense rivals.
Both companies are major players in the soft drink industry and compete fiercely for market share and customer loyalty. This rivalry is characterized by aggressive marketing and pricing strategies, new product development, and a constant battle for shelf space in grocery stores and vending machines. This intense competition makes it difficult for new entrants to gain a foothold in the industry and puts pressure on both companies to continuously innovate and improve their offerings. Hence, Coke and Pepsi are an example of E. intense rivals. Both companies are dominant players in the beverage industry and compete aggressively for market share, making them strong competitors in the industry.
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Decsribe two features of financial markets and provide the economicarguments (based on moral hazard or adverse selection) that explainwhy financial markets have the features your described.
The financial intermediaries can help to mitigate some of these challenges, they can also exacerbate them if they are not able to accurately assess the risks of their investments.
How we can financial markets have the features?Two features of financial markets are asymmetric information and the presence of intermediaries.
Asymmetric information refers to a situation where one party in a transaction has more information than the other party. In financial markets, this often occurs when insiders have access to information that is not available to outsiders.
For example, company executives may have information about the true value of their company that is not known to the general public. This information asymmetry can lead to moral hazard, where insiders may take actions that benefit themselves at the expense of outside investors.
The presence of intermediaries refers to the role of financial institutions such as banks and investment firms in connecting borrowers and lenders.
These intermediaries have expertise and resources that allow them to evaluate the creditworthiness of borrowers and the potential returns of investments.
However, the presence of intermediaries also creates opportunities for adverse selection, where borrowers with the highest risk of default are the most likely to seek out loans, and investors with the highest risk tolerance are the most likely to seek out high-return investments.
This can lead to a situation where intermediaries are unable to accurately assess the risks of their investments, which can ultimately harm investors.
Overall, these features of financial markets are explained by the challenges of information asymmetry and adverse selection.
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WHAT THREE AREAS DOES MEDICAL INFORMATICS EXAMINE
Medical informatics examines three primary areas: data management, clinical decision support, and telemedicine. It aims to improve patient care, enhance healthcare delivery, and promote research through the effective use of health information technology.
Answer - Medical informatics examines three main areas: the use of technology in healthcare, the management of healthcare information, and the analysis of healthcare data to improve patient outcomes and healthcare practices. These areas include topics such as electronic health records,
telemedicine (Telehealth is the distribution of health-related services and information via electronic information and telecommunication technologies. It allows long-distance patient and clinician contact, care, advice, reminders, education, intervention, monitoring, and remote admissions), clinical decision support systems, data mining, and health information exchange. The goal of medical informatics is to improve the quality and efficiency of healthcare delivery through the effective use of technology and information management practices.
Health informatics is the field of science and engineering that aims at developing methods and technologies for the acquisition, processing, and study of patient data, which can come from different sources and modalities, such as electronic health records, diagnostic test results, medical scans.
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The Mexican Peso, the Japanese Yen, and Pokemon Go closing case
Nintendo’s hit game Pokemon Go is a lot less lucrative in Mexico than the Japanese company originally thought it would be. This is because Mexicans purchase the "Pokecoins" they need to navigate the game in Mexican pesos, and the peso has been falling in value against the Japanese yen. Back in early 2015, 1 Mexican peso bought 8 Japanese yen. By September-2016, 1 peso was only worth about 5.1 Japanese yen. This meant that when pesos spent on Pokemon Go were translated back into Japanese yen, they were worth less in yen, which negatively affected Nintendo’s profits from Mexico.
The diverging values on the yen and peso are a function of their exchange rates against the U.S. dollar. Most trades between the yen and the peso are converted through the U.S. dollar, rather than traded directly. This is because the U.S. dollar is the world’s most widely traded and liquid currency. It’s easier to trade dollars for yen, and dollars for pesos, than it is to trade yen for pesos. For much of 2016, the yen gained against the dollar, while the Mexican peso fell, leading to a fall in the peso/yen exchange rate.
The strength of the yen reflected the belief that Japan is a safe haven in which to park cash. Although the Japanese economy has been stagnant for decades, inflation is low and the yen has been a strong currency. The Mexican peso is the most liquid emerging market currency, which makes it an easy one to sell when investors worry about the economic strength of developing economies, which they did in 2015 and 2016. To compound matters, worries about the health of the Mexican economy following the election of Donald Trump to the U.S. presidency put further pressure on the peso. Trump threatened to pull the United States out of NAFTA—the regional trade deal that has been a major boon for Mexico. The Mexican peso hit a record low against the U.S. dollar following the election of Mr. Trump.
In addition to Nintendo, the fall in the value of the peso against the yen has created problems for other Japanese firms. Japanese automakers have significant assembly operations in Mexico. Companies such as Toyota and Mazda import a large number of specialty electronic components from suppliers in Japan. The price of these components has gone up when translated into pesos, raising costs for their Mexican operations and making them less profitable.
On the other hand, the weak peso has boosted demand for some Mexican products in Japan. For example, Japan imports a large quantity of frozen Mexican pork. The price has fallen when translated into yen and demand has surged. Mexico dices up the pork and exports it to Japanese convenience stores, where it is sold in bento boxes. The dicing process is labor intensive—and one less step they have to perform in Japan. Mexico can do it cheaper, and the currency moves have only added to the cost savings, which is good for Japanese consumers.
Read the closing case "The Mexican Peso, the Japanese Yen, and Pokemon Go." It explores the implications of the changing value of the peso against the yen on Japanese game maker Nintendo. Examine the issues relevant to the case from the perspective of the following questions:
(a) Why are most trades between the Japanese yen and the Mexican peso made through U.S. dollars?
(b) Explain why the peso fell in value against the Japanese yen during 2016. How predictable was this fall?
(c) What were the benefits and costs of the fall in the value of the peso against the yen for Mexican and Japanese companies respectively?
(d) Should Japanese companies such as Nintendo and Toyota with business in Mexico have hedged against adverse changes in the peso/yen exchange rate? How might they have done that?
A. It's easier to trade dollars for yen and dollars for pesos than it is to trade yen for pesos directly. B. The yen gained strength as investors considered it a safe haven to park their cash, while the Mexican peso fell as investors worried about the economic strength of developing economies. C Mexican products like frozen pork became more affordable for Japanese consumers, benefiting Mexican exporters. D They may have accomplished this by using options or forward contracts to fix a particular currency rate for future transactions.
(a) Most trades between the Japanese yen and the Mexican peso are made through U.S. dollars because the U.S. dollar is the world's most widely traded and liquid currency.
(b) The peso fell in value against the Japanese yen during 2016 due to the diverging exchange rates against the U.S. dollar. The yen gained strength as investors considered it a safe haven to park their cash, while the Mexican peso fell as investors worried about the economic strength of developing economies. The fall was predictable given the uncertainty surrounding Mexico's economy and the U.S. election.
(c) The fall in the value of the peso against the yen had both benefits and costs for Mexican and Japanese companies. Japanese automakers faced higher costs for their Mexican operations, while Nintendo experienced lower profits from Mexico due to the weak peso.
(d) Japanese companies with business in Mexico should have hedged against adverse changes in the peso/yen exchange rate. They could have done this by using forward contracts or options to lock in a specific exchange rate for future transactions. This would have reduced their exposure to currency fluctuations and minimized potential losses.
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What is unbiasedness? Your answer can be mathematical or inplain English. Explain briefly why it is a desirable property of anestimator (Note: do not use STATA to answer this.)
Unbiasedness is a statistical property of an estimator, which refers to the lack of systematic errors or biases in its estimation of a parameter estimated.
Mathematically, an estimator is unbiased if its expected value equals the true value of the parameter. That is, if we take the estimator and compute its estimate many times from different samples, the average of those estimates should be equal to the true value of the parameter.
Unbiasedness is a desirable property of an estimator because it ensures that the estimator is not systematically overestimating or underestimating the true value of the parameter. This means that, over the long run, the estimator will provide accurate estimates that are not influenced by any external factors or biases. Therefore, unbiased estimators are preferred in statistical inference because they provide reliable and trustworthy results.
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which of the following is likely to be the least important factor for firms in determining production location?
The least important factor for firms in determining production location is likely to be the cultural and social norms of the location.
While these factors may impact the availability of labor and the ability of the firm to operate in the location, they are less likely to be the primary consideration in determining production location. Factors such as access to raw materials, transportation costs, market demand, and government policies are typically more important in determining production location.
Other factors that may be more important than cultural and social norms in determining production location include the cost of labor, the availability of skilled workers, the political stability of the location, and the infrastructure available for production and transportation.
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Which of the following is likely the least important factor for firms in determining production location? a. Comparative cost advantage. b. Environmental standards. c. Transportation costs. d. External economies of scale. Please explain. Thanks!
In the divergent stage of idea generation, a large number of ideas are pared down to a few ideas.
True or False?
During the divergent stage of idea generation, many ideas are condensed into a small number of ideas. This statement is false.
The purpose of this stage is to encourage creativity and to expand the range of possibilities for the problem or challenge at hand. The goal is to produce as many ideas as possible, regardless of their quality or potential usefulness.
It is during the convergent stage that the large number of ideas generated during the divergent stage are evaluated, analyzed, and synthesized. In the convergent stage, ideas are scrutinized and pared down to a smaller number of high-quality, feasible, and relevant solutions. This stage involves assessing the potential of each idea and selecting the most promising ones to move forward with.
The statement that a large number of ideas are pared down to a few ideas in the divergent stage is incorrect. The divergent stage is focused on ideation, while the convergent stage is focused on evaluation and selection.
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1. Define purchasing power effect. 2. Define wealth effect. 3. Describe the expansionary factors that can influence aggregate demand. 4. Describe the contractionary factors that can influence aggregat
purchasing power effect and wealth effect affect spending, and expansionary and contractionary factors influence aggregate demand.
The purchasing power effect refers to the change in the amount of goods and services that can be purchased with a given amount of money due to changes in price levels.
The wealth effect is the change in consumer spending and saving behavior that results from changes in the value of assets, such as stocks and real estate, held by households.
Expansionary factors that can influence aggregate demand include increases in government spending, tax cuts, and lower interest rates.
Contractionary factors that can influence aggregate demand include decreases in government spending, tax hikes, and higher interest rates.
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In the context of the next two FIFA World Cups (Qatar 2022 andCanada–Mexico–USA 2026), identify, examine, and compare thefollowing:New direct and indirect investment in sportTangible economic benefits—direct and induced impacts relative to the respective countriesIntangible economic benefitsLong-term tourism impactsPotential legacy impacts—tangible and intangible
In terms of new direct and indirect investment in sport, both Qatar 2022 and Canada–Mexico–USA 2026 are expected to attract significant investments.
Qatar has invested heavily in developing new stadiums and infrastructure, while Canada, Mexico, and the US have a strong existing sports infrastructure that will require upgrades and improvements. These investments will have tangible economic benefits, both in terms of direct impacts (such as job creation and increased spending) and indirect impacts (such as increased tourism and economic growth).
In terms of intangible economic benefits, the World Cup events are expected to generate positive media exposure and help promote the countries as desirable tourist destinations. These events are also expected to have long-term tourism impacts, as they will increase awareness of the countries and their respective tourism offerings.
Potential legacy impacts are also significant. The World Cup events provide opportunities for the respective countries to leave a lasting legacy in terms of infrastructure development, tourism growth, and economic impact. These impacts can be both tangible (such as new infrastructure and job creation) and intangible (such as increased national pride and improved international reputation).
Overall, while there are some differences between the two World Cup events, both are expected to generate significant economic benefits and leave a lasting legacy in their respective countries.
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Q.1 Solve this given case study about an economic system and answer all the questions from this case study. You may refer other books and internet to explain answers. CASE STUDY Gross domestic product measures the national output of a country in one financial year. As an indicator of the quality of life of population of a country, central authority might want to use real GDP per capita to measure the social welfare. This shows the purchasing power per person in the economy can be measured over time and government can formulate policies to control inflation. This is a main objective of governments because it is a measure of the financial welfare of their citizens. However, it may have limitations such as: It does not show the distribution of income and It does not reflect the quality of goods and services. Growth may have adverse environmental effects and Higher incomes may be at the expense of the quality of life e.g. it may be achieved through working more hours. Recently governments have considered alternative targets such as quality of life or satisfaction level; focusing on what makes people happy which may not necessarily be more income. Aggregate demand measures the planned expenditure on final goods and services. It comprises: C+I+G+X-M (consumption plus investment plus government expenditure plus export revenue minus import spending). Whereas, Consumption measures the spending by households on final goods and services. This is an important element of aggregate demand. . Explain why GDP cannot measure social welfare. b. Differentiate between Concepts of national income mentioned in above case. c. Explain all components of Aggregate Expenditure. . Differentiate between Inflation and Deflation in Oman economy with example. c. Identify the common target of government from above case.
GDP cannot measure social welfare because it only measures the monetary value of goods and services produced within a country in a given period. GDP does not take into account non-monetary aspects such as quality of life, distribution of income, and environmental and social factors. Therefore, it is not an adequate measure of the well-being of a country's citizens.
The concepts of national income mentioned in the case study are real GDP per capita and aggregate demand. Real GDP per capita measures the monetary value of all goods and services produced in a country, adjusted for inflation and divided by the population. Aggregate demand, on the other hand, measures the planned expenditure on final goods and services by households, businesses, and the government in an economy.
Aggregate expenditure is the total spending in an economy on all final goods and services produced during a given period. It is calculated using the formula: AE = C + I + G + (X-M), where C represents consumption spending, I represents investment spending, G represents government spending, X represents exports, and M represents imports.
Inflation refers to a sustained increase in the general price level of goods and services in an economy over time. Deflation, on the other hand, refers to a sustained decrease in the general price level of goods and services in an economy over time. For example, if the price of a basket of goods and services in Oman increases by 2% per year, this is an inflation rate of 2%. If the price of the same basket of goods and services decreases by 2% per year, this is a deflation rate of 2%.
The common target of governments in the above case is to improve the social welfare of their citizens. While GDP per capita is a common measure used by governments to assess the economic well-being of their citizens, alternative targets such as quality of life and satisfaction levels have also been considered in recent times. Governments aim to ensure that their policies promote the overall well-being of their citizens, rather than just focusing on economic growth.
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