This website uses cookies to ensure you have the best experience. Learn more

Business Economics Essay

526 words - 3 pages

Case Study
Business Economics
Jimmie C. Tolbert
Professor Melton
20 August 2012

Responds to Mr. Burke:
As the senior economic advisor to the president, I would have to say that your recommendation of lowering interest rates could potentially have positive effects under the economical principle of short-run. Lowering the interest rates would mean that the money supply in the economic will increase, thereby, giving consumers the opportunity to spend more which, will help to stimulate the demand for goods and services. This will, in turn, signal businesses to increase production of goods and services. In addition, higher production means that more units must be supplied to meet increasing demand. At this point, employers must increase their workforce by at least hiring temporary workers to match output ...view middle of the document...

Respond to Ms. Lee:
Maintaining the right amount of taxation is a very difficult subject that directly deals with taking hard earned money away from consumers. Raising taxes can have a few benefits. First, raising taxes will help to decrease the money supply by allocating the government a higher percentage of workers’ wages to help reduce the national debt. In addition, inflation can greatly be reduced if the government relied more on taxation than borrowing money. Thirdly, higher taxes also mean that the government would have additional money to support federal programs such Medicare, social security, education, and infrastructures. Conversely, the economy is in the
Responds to Ms. Lopez
Leaving the interest rate alone for now is the best economical decision that most economists can agree on. Keeping interest rates low for the next three years will encourage businesses to invest in growth now rather than wait for a time when think it right. Furthermore, keeping the interest as it is would motive people to thinking making major purchases like financing a house and that alone can help stimulate the housing market which, significantly contributed to the fall of the market. I also think that increasing the reserve requirements wouldn’t really play a major role in helping the economy to recovery because it can lead to an excess of money that can cause inflation. What happens if people are not taking loans, but there is a sudden increase in consumer depositing money into the bank? The dollar could possible depreciate in value.
Responds to Ms. Tanney:
Raising bonds to increase the money supply would currently contribute to the inflation rate. In addition, the recommendation you have provide has already been fully addressed.


Stone, Gerald W. (2011) Core Economics: Worth Publishers

Other Papers Like Business Economics

Business Economics Essay

1515 words - 7 pages Different states have certain laws on how a buyer remedy or seller remedy can be put into a contract. First we have the buyer which has certain remedies available to him or her if a seller wrongfully refuses to either give title to the real estate or otherwise defaults on an agreement of sale between the parties, unless there is a provision in the agreement that limits the seller’s remedies. Before buyer can do anything, there must be a non

Business Economics Essay

738 words - 3 pages Chapter 15, Question #14 Three main limitation to national income accounting that I would like to discuss are; errors in measurement, subcategories that are misrepresented, and how welfare is not measured (EconPort). The gross domestic product, also known as GDP, is the market value of all final goods and services produced within a country in a given period. Errors in measurement come into play because we are unable to accurately figure out the

Business Economics

1304 words - 6 pages Q.3   a).   Suppose   the   monthly   income   of   an   individual   increases   from   Rs   20,000   to   Rs   25,000   which   increase  his  demand  for  clothes  from  40  units  to  60  units.  Calculate  the  income  elasticity  of  demand.   b).  Quantity  demanded  for  tea  has  increased  from  300  to

Business Economics - 581 words

581 words - 3 pages BE formulary Break-even point is when the profit is 0, meaning the incoming money pays exactly for fixed and variable costs. q=units V=variable costs p= selling price V=v*q v= variable costs per Unit F=fixed costs C=F+v*q (total costs) break-even point= Fp-v to reach a certain profit= F+profit to reachp-v turnover= p*q contribution margin=p-v in % (p-v)/p contribution margin is the total sales minus variable costs Safety

Business Economics - 958 words

958 words - 4 pages Economics Statistics Auditors are those professionals who assure that all the financial statements are prepared according to the rules and regulations of Generally Accepted Accounting Principles (GAAP) or Financial Accounting Standard Board (FASB). There are two types of auditors which are internal auditors and external auditors. Importance and difficulty level of decisions significantly differs from one profession to another. Auditors

Economics for Business

639 words - 3 pages Question 1 [10 marks] Suppose the expected market demand for tickets to the Australian Open golf tournament to be held in Queensland in November is given by D = 40,000 -1,000P and the supply of tickets is S = 20,000. Tickets for a golfing tournament have negligible Marginal cost. Hence supply will be Perfectly Elastic. This means that 20 000 tickets will be supplied regardless of demand Demand = (40,000 – 1,000 * Ticket

Economics Business Proposal

737 words - 3 pages digital cameras will purchase a new camera with the latest technology and features; with 34% of consumers looking to purchase DLSRs, along with 70% of consumers looking for a device to upload pictures with a push of a button (CEA, 2013). Canon strategically planned the release of their new camera based on economic conditions and before the holiday season. Local Economy’s Business Cycle Stage There are four phases in a business cycle.  If gross

1 Vmware Whitepaper - Business Agility and the True Economics of Cloud Computing

2973 words - 12 pages Business Agility and the True Economics of Cloud Computing B u s i n e s s W H iTe PA P e R Business Agility and the True Economics of Cloud Computing Executive Summary New groundbreaking global survey findings demonstrate the true value of cloud computing to the business. While it is understood in the industry that cloud computing provides clear cost benefits, CIOs are having difficulty getting a true fix on the business value that

Statistics for Business and Economics

2083 words - 9 pages Greywell should do to enhance business, which has become increasingly flat. This paper shall consider some of the strategic options open to him, after first performing this abbreviated S.W.O.T. analysis. A classic method of performing competitive analyses of any new, emerging or maturing products the use of a SWOT analysis that stands for Strengths, Weaknesses, Opportunities, and Threats. This analysis of Coral Divers Club will use this method

Business and Economics Case Study

944 words - 4 pages all things to all people’ (Needles 10). The organization should reevaluate its budgeting committee. The budgeting committee should consist of a high level of executives who represent segments of the business. It is a major task to ensure that budgets are realistically established and they are coordinated appropriately. The organization should adopt a procedure whereby the functional heads present their budgets to the committee for approval


719 words - 3 pages list of famous Economics majors published by Marletta College inculdes business leaders Warren Buffet, Donald Trump, Ted Turner, Diane von Furstenberg, and Sam Walton, as well as former Presidents George H.W. Bush, Gerald Ford and Ronald Reagan. Why might studying economics be particularly good preparation for being that top manager of a corporation or a leader in government? Based on Patricia M. Flynn and Michael A. Quinn. “Economics: A Good

Related Essays

Business Economics Essay 763 Words

763 words - 4 pages :// 4354751775512702954&div=8&cust=4501&ktsID=75302&page=113 Robert T. Parry, “ Conducting monetary policy in a global economy.” National association for business economics, (1998): Web. 24 Nov 2009. Mack Ott, “ National income accounts.” The concise encyclopedia of economics, library of economics and liberty (2008): Web. 23 November 2009.

Business Economics Essay 3239 Words

3239 words - 13 pages M.R. (2010) Managerial Economics and Business Strategy. 7th edition. New York: McGraw-Hill/Irwin. Business Dictionary . (2010) Economic Efficiency. [Online] Available from: [accessed 20 August 2014] Dineshbakshi (n.d.) Market Economic System, Features, Advantages and Disadvantages. [Online] Available from:

Business Economics Essay 3972 Words

3972 words - 16 pages | Peter F. Drucker is the management scholar. He is thought to be the establishing father of current management. Peter Drucker, whose life crossed the previous century (1909 – 2005), was an exceedingly instructed native of the world: an innovative soul who composed thirty-nine books including numerous fantastic chips away at business management. He was a man of numerous parts: a sharp eyewitness, a long lasting understudy, an educator, mentor

Model Personal Statement For Business And Economics

559 words - 3 pages involves a lot of interaction with people, which I enjoy. In school I hold the position of house prefect. This I believe is as a result of the leadership qualities and strong personal skills I have. I feel the skills and the knowledge that I gain in the studying if economics business relayed issues would stand me in good steed when I complete my studies to return to Nigeria to be part of the process of development and change