May 2018 – Page 155 – Precision Essays

Urgent Essay Help-Micro Economics

After a major earthquake struck Los Angeles in 1994, several stores raised the price of milk to over $6 per gallon. The local authorities announced that they would investigate and that they would enforce a law prohibiting price increases of more than 10% during emergency period. What is the likely effect of such a law?

Is it possible that an outright ban on foreign imports will have no effect on the equilibrium price?

Arthur spends his income on bread and chocolate. He views chocolate as good but is neutral about bread, in that he does not care if he consumes it or not. Draw his indifference curve map.

Sofia will consume hot dogs only with fries. Draw her indifference curve map.

Don spends his money on food and operas. Food is an inferior good for Don. Does he view an opera performance as an inferior or normal good? Explain why.

Prescott (2004) argues that US employees work 50% more than German, French, and Italian employees because they face lower marginal tax rates. Assuming that workers in all four countries have the same tastes toward leisure time and goods, must it necessarily be true that US employees will work longer hours? Explain why.

Does Prescott’s evidence indicate anything about the relative sizes of the substitution and income effects? Why or why not?

Research Paper Help-What do you think is a better variable to measure worker productivity during work

http://www.nbcnews.com/business/business-news/march-madness-could-cost-employers-4b-lost-productivity-n538021

What do you think is a better variable to measure worker productivity during work?

How would you be able to measure that variable?

What do you do at work to make it seem that your productivity is outstanding even though you are on Facebook, LinkedIn, etc?

Urgent Essay Help-Export oriented industrialization strategy

Compare simultaneity the two case countries (do not evaluate each country separately) by discussing the following aspects:

What is the country terms of trade?

Discuss ratio of the total of exports to GDP. Then , total industrial exports to GDP. Compare these ratios for the two nations. The goal is to see the exports (mainly manufactured goods) achieve export-led growth?

Assess whether export of manufactured products used to substitute the export of primary products.

Does export-led growth improve the case country’s foreign-currency finances? In other words, after paying for imports are currency reserves left to support the government finances?

Is the productivity growth of export goods is higher than the proportional wage growth and the productivity growth of non-tradable goods? In this is the case, export price should decrease in the export-led growth country and exports should become more competitive in international trade.

Discuss which country had benefited more from the Export-Oriented Industrialization Strategy, in terms of boosting (i) GDP ; (ii) financing import by exported manufactured good; (iii) currencies reserves generated from exports; (iv) the increase of export of manufactured goods compared to raw materials goods; and (vi) the attractiveness of FDI operating in manufactured goods exporting sectors.

Urgent Essay Help-Government support for exporting sectors

The advantages of this kind of economic development model, putting the country’s products into the international competition, are undoubtedly obvious. Most of the countries using this development model obtained a rapid economic growth, which proves that the view that only import substitution can lead to the development of traditional industries is totally wrong.
Compare simultaneity the two case countries (do not evaluate each country separately) by discussing the following aspects:

Identify in each country the export sectors that present a comparative advantage for your case countries . What is the share of each major sector in the international market?

In each country , identify major industrial products in each country and look at the weight of these products in the total exports. What is the portion of manufactured goods versus raw materials?

To what extent reduced tariff barriers and devaluation of national currency are utilized to boost exports?

What is the government support for exporting sectors (subsidies, credits to export, tax cut ..etc.)?

Does exports companies have a preferential access to the local markets

Discuss whether the two case countries have a deficit or a surplus of the trade balance. Then, see if the industrial exports can cover imports of industrial import needed for industrialization.

Research Paper Help-Determination of Stock Prices

Stock prices are very difficult to predict; although, there are some theories for the determination of stock prices such as the fundamental analysis, the Gordon growth model (or dividend-discount model), and the efficient market analysis. Read Hubbard and O’Brien’s (2017) Chapter 6 and Garth Friesen’s (2017) article, When Good News Is Bad for Stocks (Links to an external site.)Links to an external site.,

Analyze reasons why good news for the economy (long term) isn’t always good news for stock and other financial markets (short term).

Evaluate the assumption that stock price movements are purely random (the random walk theory), describing what a random walk is.

Discuss the strengths and weaknesses of the efficient markets hypothesis.

Explain the rationale for buying stocks when stock prices are not predictable, noting what kind of strategies would be useful for investing $100,000.

College Essays-To locate, retrieve, and evaluate the effects of macroeconomic indicators on your own decision making

Discuss the influence of any Federal government or state government programs, such as tax credits or tax deductions for energy-saving/efficiency purchases, on your decision to make your last big purchase; or if government incentives did not factor into your decision, explain why not.

Develop conclusions about the economy’s influence on personal and business decision-making relative to purchases of big-ticket items, investments, or other major purchases.

To locate, retrieve, and evaluate the effects of macroeconomic indicators on your own decision making.

Consider your last big purchase such as a car, appliances, home repairs, home purchase, computer equipment, college tuition, or another “big-ticket” item, which are often purchased using loans/financing (by borrowing money). Also consider your decision-making process that led you to choose a particular make, model, or brand of the product (or service) you purchased and whether it was the right time to make the purchase given economic conditions at the time of your purchase. While analyzing your decision, keep in mind everything from interest rates to the prices of complementary and substitute goods are driven by human economic behavior.

Retrieve statistics on the Effective Federal Funds Rate and on the Consumer Price Index: All Items Less Food and Energy by year for the last 30 years. You can retrieve those statistics from internet sources including, but not limited to, the Federal Reserve of St. Louis’s FRED web site, the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) web site, or other credible sources of your choice. Post these statistics in a single worksheet of an Excel® workbook and submit your Excel® file with your report. In your report, discuss how the trends in the Effective Federal Funds Rate compare with trends in inflation. If you took out a loan to pay for your “big-ticket” purchase, what was the interest rate on your loan? Were interest rates rising or falling at that time? Were interest rates relatively high or low at that time? You are also encouraged to include graphs of these statistics in your report.

Urgent Essay Help-Evaluate the effects of macroeconomic indicators on your own decision making.

Assume that an investor is risk-neutral (i.e. assume that the investor always chooses the investment with the higher expected rate of return even if it is riskier). If the yield on 1-year marketable CD’s is 6% while the yield on 2-year marketable CD’s is 7% and this investor purchased the 1year T-bill, what must (s)he expect to happen to short term interest rates over the coming year?

In question # 1 above, what is the expected interest rate level one year from now that would equalize the expected rate of return on one year and two year CD’s if both were held for one year?

If the Fed lowers short term interest rates by 1/2% but investors believe this is just a temporary reduction which will only last a few months, and therefore their expectations of future short term interest rates remain unchanged, what will happen to the yield on 10 year Treasury bonds?

If at a point in time long term interest rates were below short term interest rates, what would this indicate about investors expectations of future short term interest rates? Explain your answer in a few sentences.

If investors thought that a reduction in the Fed’s Federal Funds market interest rate target would cause inflation rates to increase in the future, what would happen to the shape of the treasury yield curve? Draw a diagram to illustrate your answer.

If interest rates and required yields at all maturities unexpectedly fell by .5% in a month, would a portfolio of long term securities perform differently than a portfolio of short term securities? explain your answer and relate it to the concept of interest rate risk.

Bond rating agencies such as Moody’s publish rankings of the credit quality of corporate borrowers. AAA rated corporations have the lowest level of default risk followed by AA and A the Baa, etc. Under what circumstances would the spreads between yields on bonds issued by ‘B’ rated corporations and yields on AA rated corporate bonds widen noticeably?

Suppose 1 year Treasury-bills were currently yielding 5.5%. Also suppose that a bank estimated that a particular loan applicant had a 30% chance of defaulting on a one year loan and that in the event of default the bank would recover only 25% of its scheduled payment of principle (estimated net proceeds of the sale of collateral). What interest rate would the bank have to charge to earn an expected rate of return on its loan equal to the T-bill rate?

Homework Help-Econmics Question

The residents of Deer Lick, Nebraska are considering allowing the proposed StoneKey Oil Pipeline to have right-of-way to build the pipeline within a couple miles of their town. Without the pipeline, the per capita income in Deer Lick is $36,000 per year. Allowing the pipeline to be built so close to their town would pay additional royalties to the townspeople of $4,000 per capita per year. However, there is a risk – experts have determined that there is a 10% chance the pipeline could leak oil into the town’s groundwater supply, which would cost residents an estimated $20,000 per capita per year in contamination and other environmental costs. [The tiny town’s lawyers have determined that they would not stand a chance against the pipeline’s high-powered attorneys, so if there was an oil leak there would be no chance that the town would win a lawsuit for compensation. That is, compensation for damages would be zero. They would only continue to receive the $4,000 royalty.] Assume you are a resident of Deer Lick:

f your utility of wealth were given by the function = ln (), calculate your expected utility from allowing the pipeline to be built. Based on your expected utility, how would you vote? Explain.

Calculate your certainty equivalent for taking this risk, and the associated risk premium. Intuitively describe what each of these measures.

How high would the probability that the oil would leak into the groundwater supply have to be for you to vote against the pipeline? Why? Let’s say that the townspeople voted to approve the pipeline. To make things simpler for parts (d) and (e), now just use for the utility function, denote per capita income plus royalties as and damages in the event of a leak as (in other words, don’t bother plugging the actual numbers into the explicit form utility function anymore).

Suppose the town could collectively invest some amount (dollars per capita per year) to install protective underground barriers that would reduce the probability that any leaked oil would contaminate the groundwater supply – a form of self-protection. If the town has invested per capita per year in self-protection, the probability that a leak will contaminate the groundwater supply is given by the function , where ! < 0. Derive the condition for the optimal amount of investment per capita per year in self-protection? Be sure to provide an intuitive interpretation of the condition you derive.

Now suppose that in addition to the public investment in self-protection, the town could privately invest the amount (dollars per person per year) in some form of self-insurance that would reduce damages per capita in the event of a leak. If a leak occurs, and the town invests per person per year in self-insurance, the damages would be given by the function , where ! < 0. Derive the conditions for the jointly optimal investments in self-protection and self-insurance? Be sure to provide intuitive interpretations of the conditions you derive. Part 3 – You will be required to answer one of the following questions (chosen at random by me):

Using a model similar to that found in Hartwick & Oleweiler, Chapter 8, p. 296-271, derive the condition for the efficient extraction of a depletable resource, and solve for the optimal amount extracted in any two consecutive periods, ! and !!! . Be sure to interpret the condition you derive. Assume the following:

The initial stock of the resource is ! .

The discount rate is .

The final period is .

The firm is a monopoly, and the inverse market demand curve for the extracted resource is ! = − ! . !

The extraction cost curve is ! = ! ! . ! 6. Consider a forest economy in which all timber stands are of equal quality and privately owned. Assume that the net price of harvested timber, , is constant over time, as is the cost of planting a new stand of trees, . Derive and intuitively explain Faustmann’s rule for the optimal timber rotation for a representative stand of trees, denoted by . How and why does the optimal rotation change if

the discount rate increases,

the cost of planting increases, and

the net price of timber increases?

Urgent Essay Help-Explain in detail how the contingent valuation method would be used to estimate the value of the environmental good.

Western Wyoming, natural gas production produces a significant amount of ozone emissions. On really cold days in the winter, temperature inversions trap the ozone near the ground, and the unusually high levels of ozone in the atmosphere cause significant health issues for residents

Using a simple supply and demand diagram, model this negative externality associated with natural gas production. Be sure to show both the competitive and socially optimal equilibrium prices and output of natural gas.

Using your diagram, show the increase in economic welfare that would result from moving from the competitive to the socially optimal equilibrium

How might the Wyoming state government construct a policy that would induce the natural gas companies to produce the socially optimal amount of natural gas? Mathematically demonstrate your answer.

Give an example of an environmental good for which the contingent valuation method could be used to estimate its value.

Explain in detail how the contingent valuation method would be used to estimate the value of the environmental good.

What sorts of issues can arise? How might they be addressed? Note: You might refer to Hanemann (1994) to help answer this part.

Briefly describe another valuation method that could be used to value the same environmental good, and explain how the alternative method you chose differs from the contingent valuation method.

What is a public good?

Give an example of a public good.

What is the key market failure associated with public good provision?

What is the result of this market failure in terms of how much of the public good is provided?

A diagram would go a long way in helping show that you understand the answer to this question, but it must be accompanied by a complete and intuitive description of what you have drawn.

How might a government entity estimate the value of the public good you chose?

How might they implement a policy to provide the socially optimal amount of your public good? Part 2 – You will be required to answer the following (a calculator will be necessary for basic calculations):

Research Paper Help-Managerial Economics and Business Theory 4

Founded in 2009 by Travis Kalanick, Uber provides transportation service in U.S., European, and Asian cities. In the year 2014, its gross revenues were $2.957 billion; net revenue after commissions and incentives, $495 million; cost of revenue, $400 million; operating expenses, $661 million; for an EBIT of $565 million. The original Uber model of operations was for the driver to use his or her own vehicle and offer services as and when they liked.

The Uber webpage for drivers DBA 7180, Managerial Economics and Business Theory 4 emphasizes that drivers can use their own car, set their own schedule, and get paid weekly. More recently, Uber has arranged for drivers to rent cars to provide Uber services. Uber clients book and pay for rides through the smartphone. As noted in Business Insider’s article by James Cook, after each ride, the Uber client rates the driver on a scale from 1 to 5. If a driver’s rating falls below a particular level, Uber discontinues her or him from offering the service.

Uber also allows drivers to rate clients. In January 2015, Uber extended fare cuts from the largest U.S. markets to 48 more cities. Uber asserted that the lower fares would benefit clients and drivers because the higher demand would allow drivers’ incomes to increase. The higher demand makes the drivers more efficient, so that they can get more trips every hour, which means more earnings for them. By contrast with Uber, whose drivers provide service with private cars, the Chinese services, Didi Dache (backed by Tencent) and Kuai Di Dache (backed by Alibaba) are smartphone-based applications to book taxis. In 2015, faced with competition from Uber (backed by search engine Baidu), Didi Dache and Kuai Di Dache merged. Following the merger, they continue to operate as separate services. Based on the case above, answer the following questions:

To what extent do you think that any economic inefficiencies of the original Uber operating model may impact the operational strategy and ultimately the success or failure of the firm?

Considering the abundance of consumer ethics-related concerns about Uber, do you think that the industry should be further regulated?

Based on the literature presented in this unit and your own research, do you think the current regulations are fair? Appraise the economic concepts of the operational strategy which may result in reduction in prices and resultantly lead to increase in demand.

Explain how to use this concept to calculate the change in revenue from a 1% cut in prices. In Chicago, the reduction of fares by 23% led to 12% increase in revenue.

What do these data imply about the concept of regulations, mentioned above? On a figure with dollars per hour on the vertical axis and hours of labor supplied on the horizontal axis, please sketch the driver’s marginal benefit from providing labor.

If the driver supplies more hours, he or she raises the probability of getting work, but at a diminishing rate. Explain how a reduction in the fare affects the marginal benefit from providing labor. Consider both the direct effect of the fare and the indirect effect (lower fare attracts more customers and raises the probability that the driver gets work).

From a driver’s viewpoint, what is the optimal quantity of labor to supply? Intuitively, does an increase in earnings necessarily make drivers better off?