Economics Junk Essay

This essay has a total of 2043 words and 14 pages.

Economics Junk

6.6
A) If a consumer has a certain income and at this level of income the consumer prefers to
purchase 50 units of y and 0 units of X, if the price of good Y is $10, then the consumers
income is $10*units of Y.


Disposable income= $10*y =$10*50 =$500.

B) If the same consumer wished to purchase 40 units of X and 0 units of Y, the price of
good X would be disposable income divided by the number of units to be purchased.



Cost of good X= disposable income/units of X =$500/40 =$12.5

C) The equation for the budget line is calculated using the prices for each good and the
disposable income. The disposable income is equal to the cost of good X multiplied by the
amount of X purchased, plus the cost of good Y multiplied by the amount of Y purchased. To
find the equation of the budget line, solve for Y.


$500=$10Y $12.5X
$10Y=$500-$12.5X
Y=$500/$50-$12.5/$10X
Y=$50-$1.25X

D) The consumer would choose the point where the budget line is tangent to the highest
possible utility or indifference curve. This would be the utility function II. The lines
are tangent at X=20 and Y=25. This combination maximizes consumption with available
income.


E) The marginal rate of substitution measures the number of units of Y a consumer will
give up per additional level of X, holding the utility constant. This is the point of
utility maximization. Where the budget line and the indifference curve are tangent. The
highest level of utility with the given budget line is achieved with Xbar units of X and
Ybar units of Y.


MRS= Absolute Value of -ªY/ªX (this is the absolute value of the slope of the indifference curve).

MRS= |-12.50/10.00| = 1.25

F) At point A- the consumer can give up one unit of X for 1,25 more units of Y and utility
will not change. Consumers can buy Px/Py more units of Y if 1 less unit of X is purchased
on this budget line. This is more Y than is needed to be indifferent (Px/Py>MRS). Giving
up one unit of X to get 1.25 more units of Y must increase utility.


At point B- Consumers would give up 1.25 units of Y to get 1 more unit of X and remain on
the budget line, utility remaining unchanged. Px/Py














Continues for 7 more pages >>




  • Children and Television Advertising
    Children and Television Advertising Children Interacting with Television Advertising Introduction The following research has sought to understand the influence of television on children over the past twenty years using a variety of social models, from public policy and industry self-regulation, to how children receive and process media messages and the parental responsibility in monitoring what is acceptable for children to view. As a baseline, our research used a model of children interacting w
  • CocaCola
    CocaCola History "Coca-Cola enterprises Incorporated, employees 66,199 operates, 444 facilities, 47,235 vehicles, 1.9 million pieces of cold drink equipment and sold 3.8billion unit cases in 46 states in the united states, all 10 provinces of Canada and portions of Europe including Belgium, France, Great Britain, Luxembourg and the Netherlands" (Coca-Cola facts 99). An, Atlanta Pharmacist Dr. John Slyth Pemberton founded Coca-Cola on May 8, 1886. The carmel colored ingredients, Coca leaves and k
  • CrossCultural Communication
    CrossCultural Communication 1. Topic The report is about the difficulties based on cultural differences marketers and advertising agents have to deal with when setting up an advertising campaign. 2. Introduction The research report will try to show what are the main problems marketers are confronted with when they set up an advertising campaign for the world markets. It is not the goal of the essay to find new approaches to avoid expensive mistakes connected with the wrong advertising campaign.
  • Drug Testing and Corporate Responsibility
    Drug Testing and Corporate Responsibility Drug Testing and Corporate Responsibility: The "Ought Implies Can" Argument Drug testing has become a hot topic under the microscope recently. The problem is the question whether or not it is morally wrong to test employees for illegal drug use. In order to justify drug testing in the work place one must look to rights, among other things, to determine what sorts of controls are morally permissible. In order to really determine whether or not drug testin
  • Ecommerce companies and stock valuations
    ecommerce companies and stock valuations eCommerce Companies and Stock Valuations 1. Introduction A hot topic in todays business culture is eCommerce. Experts argue about whether eCommerce will change business, whether or not it is a fad, and what viable strategies there are in a business world that is changing at the speed of idea generation. One thing that nobody argues about is the fact that eCommerce oriented companies have stock prices and market capitalizations that are enormous. Based on
  • Effects on economy1850 to 1914
    effects on economy1850 to 1914 Effects on Trends in Trade Policy from 1850-1914 The modernizing world of 1850-1870 belonged to an age of remarkable growth in international trade, stimulating the largest free market the world had ever seen. Yet by 1914, only 30 years later, the trend towards liberal trade policies had mostly ended, replaced by a revival of the protectionist system. A study of the variation in trade policies over time shows a remarkable growth in the power of interest groups to in
  • Free Trade Vs Protectionism
    Free Trade Vs Protectionism Free Trade n Free trade is a policy by which a government does not discriminate against import or export, and it does not imply that a country abandons all tariffs and duties of imports and exports. The conceptual case for free trade is based on an argument that the division of labor among countries leads to concentration, greater effectiveness, and higher output. Benefits of Free Trade n Free trading partners are less likely to go to war with each other n A nations c
  • Freedom ads
    freedom ads Freedom Ads In America today, advertisements can be seen just about everywhere. They are frequently done on television, radio, and billboards; in newspapers, magazines, and catalogs; and through direct mail to consumers around the nation. The purpose of each ad is to appeal to the individual and persuade them to purchase the proposed product. These appeals offer the hope of more money and better jobs, security against the hazards of old age and illness, popularity and personal presti
  • McDonalds1
    McDonalds1 Mcdonald\'s and you By: M. Pelle E-mail: Miewsette1@aol.com McDonaldization of Society In today\'s\' complicated and ever changing society, we often try to achieve a sense of stability and familiarity around us. One way our culture has tried to make life a little easier is by implementing a function now know as "McDonaldization". McDonaldization is defined as "the process by which the principles of the fast food restaurant are coming to dominate more and more sectors of American socie
  • Middle Managers
    Middle Managers As the manufacturing industry of the economy began to decline in the 1970s and 1980s, the service type companies springing up everywhere. The ranks of white-collar middle managers made strides up the corporate ladders, and filled thousands of positions. The stock market crash of October 1987 brought industries to a spiraling halt. Businesses, such as, airlines, financial services, and manufacturing were all descending. Suddenly all those things that organizations had counted on i
  • Zero Inflation
    Zero Inflation Introduction Hyper inflation has plagued most of the worlds developing countries over the past decades. Countries in the industrialised world, too, have at times duelled with dangerously high inflation rates in the post WWII era. With varying degrees of success, all have employed great efforts to bring their inflation rates within acceptable limits. Generally, a moderate rate of inflation has been the ultimate goal. More recently, however, a few countries have pursued policies th
  • Effects of web on business
    Effects of web on business Effects of the Web on Business The Internet will greatly alter the structure and operation of all industries. For the management of any existing business the central question is not whether the Internet will be relevant to your business, but rather what will we need to do to profit from that change ( The Internet ). The Internet is evolving many aspects of business and it creates many new business opportunities. It is developing what is called the New Business Envir
  • Napster First Amendment right
    Napster First Amendment right Napster: To Be or Not To Be Napster (http://www.Napster.com) is a company that operates exclusively online as a virtual music forum. Napster not only allows its visitors the ability to participate in ongoing discussions through its message board forums and online virtual chat rooms, but it also allows its visitors the capability to exchange music files (MP3s) with other Internet users. Because Napster is a "virtual" online public forum, Napster should be protected u
  • Antidumping and the WTO
    Antidumping and the WTO While antidumping doesn\'t get a lot of press, it is certainly one of the biggest issues that the WTO is dealing with today. During the recent WTO Ministerial Conference in Seattle, much was mage about protesters who were demanding higher environmental standards or international labor standards. Little was mentioned about antidumping. However, In the midst of the many demonstrators there were steel workers and members of other union organizations like the AFL-CIO who were
  • Classical macro economics
    classical macro economics CLASSICAL MACROECONOMICS Classical macroeconomics is the theory and the classical model of the economists Adam Smith, David Ricardo, John Mills and Jean Baptiste Say. Below the assumptions of the classical macroeconomics are described. 1. Assumptions: Competitive markets: Classical theories all make many assumptions about the markets and their competitiveness.these assumptions are that all the markets are easy to enter and exit. No monopoly elements are present in the
  • ECONOMIC NATURALIST
    ECONOMIC NATURALIST GRADUATE SCHOOL UNIVERSITI UTARA MALAYSIA MANAGERIAL ECONOMICS (EG 5013) PROJECT PAPER ON ECONOMIC NATURALIST: WHY COMPANY GIVES OUT COMPLIMENTARY CALENDARS? MASTER IN BUSINESS ADMINISTRATION OCTOBER 1999/2000 SESSION PREPARED BY : SUKRI B RADZALI (MATRIX NO. 81420) PREPARED FOR: EN. SHAMSUL BAHRAIN RAWI SCHOOLOF ECONOMICS, UUM DATE: 24TH DEC. 1999 Introduction We always associate the month of December with flood season especially in Kelantan & Terengganu. December also norma
  • Ethical Economics
    Ethical Economics Nicholas Grosz Mr. Burke Econ 3/1/00 ETHICAL ECONOMICS? The term ethical and economics should never be put into the same sentance. They are almost oxymoronic in the sense that in order for one to succeed on an economic level, ethics are usually never involved. America as we have come to know it is a world full of mice and snakes. The mice are those in society who voluntarily choose to live off of the prosperous, as the snakes go out and get their prey. The capitalistic society
  • Gas War
    Gas War Gasoline is produced by a distillation process where crude oil is heated and fumes are captured and converted into many products such as kerosene, jet fuel, and gasoline to name a few. Therefore the price of crude oil, which is extracted from oil wells beneath the earths surface, is a major factor in gas prices. The five leading oil-producing countries and their approximate shares of the world supply of oil are: Soviet Union 21%, Saudi Arabia 17%, The United States 15%, Venezuela 4%, and
  • Gov Intervention
    Gov Intervention The information economy has resulted in a reduction in the barriers to entry, more competitive markets and less need for government intervention Discuss. The Information Economy, Primarily Information Technology and the Telecommunications have seen a dichotomous effect in relation to barriers to entry and government intervention. In relation to specifically these two industries in Australia and abroad, the Information Technology sector is to some degree an Oligopolist market.
  • Hayeks Contribution to the business cycle
    Hayeks Contribution to the business cycle Friedirch August von Hayek was born in Vienna on May 8, 1899 and died on March 23, 1992, in the city of Freiburg in Breisgan in Germany. Hayek was a central figure in 20th-century economics and he represented the Austrian tradition. After Hayek served military service, he became a student at the University of Vienna where he got his doctorate in law and political science. In 1923-4, Hayek visited New York and then returned to Vienna where he continued hi
  • International trade1
    international trade1 One of the greatest international economic debates of all time has been the issue of free trade versus protectionism. Proponents of free trade believe in opening the global market, with as few restrictions on trade as possible. Proponents of protectionism believe in concentrating on the welfare of the domestic economy by limiting the open-market policy of the United States. However, what effects does this policy have for the international market and the other respective coun
  • Is Microsoft A Monopoly
    Is Microsoft A Monopoly America\'s century-old antitrust law is increasingly irrelevant to our modern global information technology market. This law is obsolete, in accordance to the current Microsoft situation, because in the past there wasn\'t technology as there is now. Recently the government has been accusing Microsoft as being a monopoly. "Techno-Optimists" claim that "efforts by government to promote competition by restraining high-tech firms that acquire market power will only stifle com
  • Macro
    macro CLASSICAL MACROECONOMICS Classical macroeconomics is the theory and the classical model of the economists Adam Smith, David Ricardo, John Mills and Jean Baptiste Say. Below the assumptions of the classical macroeconomics are described. 1. Assumptions: Competitive markets: Classical theories all make many assumptions about the markets and their competitiveness.these assumptions are that all the markets are easy to enter and exit. No monopoly elements are present in the market to prevent n
  • The price of gasoline is a major interest to almos
    Mr The price of gasoline is a major interest to almost everyone in the country and almost everywhere in the world. It seems that every month and sometimes more frequently, gas prices are either spiking or dropping, never staying stable. Gasoline prices are affected by many factors, including the price of crude oil in the world market, supply and demand for gasoline, local market competition, temporary supply interruptions, government regulations, or taxes. Gasoline is produced by a distillation
  • None1
    none1 Introduction Hyper inflation has plagued most of the worlds developing countries over the past decades. Countries in the industrialised world, too, have at times duelled with dangerously high inflation rates in the post WWII era. With varying degrees of success, all have employed great efforts to bring their inflation rates within acceptable limits. Generally, a moderate rate of inflation has been the ultimate goal. More recently, however, a few countries have pursued policies that strive
  • Paul a samuelson
    paul a samuelson BIG ECONOMIC ISSUES Samuelson has offered the world many economic theories. One area he is widely known for is his views on the spending multiplier. Samuelson has presented a way through his aggregate demand model to demonstrate how the spending multiplier affects individual types of spending. There are several components of aggregate demand. The basis for understanding this model is as follows: An increase in prices causes a drop in household assets, thus causing consumers to
  • The Telecommunications Industry
    The Telecommunications Industry The Telecommunications Industry There are many changes that occurred in the industrial organization of interexchange telecommunication services in the United States during the 1985-1995 period. Lets look at the general idea of Telecommunications. It is the two-way exchange of info in the form of voice or data messages between tow users at distinct geographic locations (5, 7). The two-way exchange is now a numerous way exchange through the use of computers and th
  • Treatise
    treatise Daekwon the chef and Rza Shogun, Sergio Suarez, Sylvia Lin, Anne-Sophie Young Economics Final Report A Treatise on the Value of Economic Indicators The US Economy and Economic Indicators The United States economy is the strongest and the most affluent in the world. Besides having the highest GDP (Gross Domestic Product), the United States has a complex system of regulating economic policy and controlling the money supply. The system also regulates banks and financial institutions, and e
  • Organized crime
    organized crime Organized Crime When most people think of the Mafia they think, murderers and gamblers. But in fact the Mafia is more than just a bunch of wise guys sitting around gambling. For years organized crime families have provided for many and brought wealth to their communities. In the early years of America, organized crime helped pave a way for many of the American cities to grow to what they are today. Most of the families provide for more than one hundred people per community. O
  • Post Industrial Society A Brave New World
    Post Industrial Society A Brave New World Post Industrial Society: A Brave New World? Aldous Huxley was born on July 26, 1894 in Surrey, England. He was born to a very scholarly family, most notably his grandfather T.H. Huxley, a well-known biologist and foremost advocate for Darwins evolutionary theory. Aldous upbringing was shaped by many diverse influences, from his brother Julian, a notable biologist, to his mothers uncle Matthew Arnold, a well-known English poet and literary critic. This
  • Global Capitalization
    Global Capitalization Subsequent to the signing of the Peace of Westphalia in 1648, a strong theory of a modern state emerged. The concept relied deeply upon the establishment of three principals explained by James Lee Ray. Obtaining a modern state depended on, first and foremost, territory. The image of a territory with fixed borders having an apparent national identity with in them (Class notes 10/23). A vast campus that in comparison to another holds unique characteristics and shows diversity
  • Inflation
    Inflation INFLATION Inflation, in economics, is used to describe an increase in the value of money; in relation to the goods and services it will buy. Inflation is the sustained rise in the aggregate level of prices measured by an index of the cost of various goods and services. Repetitive price increase cause the purchasing power of money and other financial assets with fixed values, creating serious economic uncertainty. Inflation results when actual economic pressures anticipation of future
  • Progressive Stuff
    Progressive Stuff TRUTH AND THE EVOLUTION OF THE PROFESSIONS: A COMPARATIVE STUDY OF \'TRUTH IN ADVERTISING\' AND \'TRUE AND FAIR\' FINANCIAL STATEMENTS IN NORTH AMERICA DURING THE PROGRESSIVE ERA Both advertisers and auditors wrestled with the truth of their text during the Progressive Era (1880-1940). Although in North America, advertisers adopted "truth in advertising" as a theme, auditors rejected "true and fair" as a description of financial statements. Auditors instead adopted the weaker s
  • Should We Use NutraSweet and Other Artificial Swee
    Should We Use NutraSweet and Other Artificial Sweeteners Should We Use NutraSweet & Other Artificial Sweeteners? Over the years there has been a huge "food fight" concerning the safety of NutraSweet and other artificial sweeteners. In the eyes of the consumer the safety of such products is questionable. In my opinion it isn\'t safe to use products like this. Though many scientists and other health professionals claim it to be safe I still don\'t trust these products. In 1981 the little blue pack
  • Causes of the stock market crash
    causes of the stock market crash Causes of the Stock Market Crash It has been said that all good things must come to an end. In the case of the Roaring Twenties that end came abruptly and unexpectedly. It is easy for one to look back upon the economic situation that lead to the crash and ridicule the experts for not seeing the signs of a potential disaster. But it was not so easy for them to see such a crash coming. The 1920\'s were a booming decade and stock prices looked to be at a steady clim
  • New world order
    new world order The New World Order The idea of a New World Order has been around for a long time. This ideal centers around the concept of a one world government led by the United Nations. Many have praised the idea of a New World Order, including some of our very own Presidents of the United States, while other stand against the idea all together. In theory the idea of a one world government would be nice, uniting the world as one, however the shortcomings, in my opinion, out weigh the positiv
  • Gun Laws
    Gun Laws States from Michigan to Nebraska to California, as well as the federal government, are considering new rules on letting law-abiding citizens carry guns. Does allowing citizens to carry concealed handguns deter violent crimes? Or does this cause otherwise law-abiding citizens to harm each other? Thirty-one states now have guaranteed their citizens the right to carry concealed handguns if applicants do not have a criminal record or a history of significant mental illness. So what have the
  • Product Liability
    Product Liability Product Liability Every day American consumers purchase products that they feel are beneficial to there development. Where that lies depends on the consumer. However, One underling variable is a constant when it comes to purchasing the product. That variable is whether or not the product is right for them. When the consumer purchases a product, they are liable for whatever mishaps may occur and accidents that may happen. But producers are not completely free from the liability
  • Complete Philip Morris Marketing Analysis
    Complete Philip Morris Marketing Analysis Definition of Industry Market Concept The tobacco industry consists of many competitors trying to satisfy a specific customer need. Companies such as Philip Morris, RJ Reynolds, Brown and Williamson, and Lorillard hold almost the entire market share in the tobacco industry. While each company has different advertising and marketing techniques, they all target the same customer group. Tobacco companies try their best to generate interest in their particul
  • MARKETIN STRATEGY IN ECOMMERCE
    MARKETIN STRATEGY IN ECOMMERCE Marketing Strategy and E-Commerce Introduction With the rapidly advancing technologies that are occurring in modern business, organisations are required to be ready, and able to adapt within their ever-changing environment. It is true across all diverse industries that in order to stay competitive, organisations must be able to utilise the various tools that technology has to offer. Technological factors have been of growing importance, particularly in recent years
  • Marketing Management Strategy Of An SME
    Marketing Management Strategy Of An SME Investigating and Measuring the Effect Of The Firms Recent Implementation of a Marketing Management Strategy And Relating The Concepts and Thinking Behind This Orientation to Theory. Applying Marketing Management Theory To Produce Recommendations For Future Business Success and Development. "Marketing ideas have made singularly little penetration into the centres of influence of the construction industry. To some extent this follows from the character of
  • Marketing Strategy and ECommerce
    Marketing Strategy and ECommerce Introduction With the rapidly advancing technologies that are occurring in modern business, organisations are required to be ready, and able to adapt within their ever-changing environment. It is true across all diverse industries that in order to stay competitive, organisations must be able to utilise the various tools that technology has to offer. Technological factors have been of growing importance, particularly in recent years. A major factor involved in the
  • What is markeitng
    what is markeitng MARKETING-1L1 WHAT IS MARKETING DEFINTION OF AMA: 1-identifing the wants and needs of the consumer and coordinately create products to satisfy these needs profitably and efficiently. 2- process of planning and executing the conception, pricing, promotion, place (distribution), ideas, goals and services to create exchanges that satisfy objectives. HISTORY OF MARKETING: PHASE 1: This was the production-oriented period. There were few products and many customers (demand * supply).
  • Aaaaaa
    aaaaaa Here is the tobacco case study for the marketing ethics discussion: LYING AND TOBACCO Senior Executives Caught in the Ethical Cross Hairs: Shareholder Loyalty or Social Responsibility? Case Development: Shelton S. Bridges, IV & Stephen M. Mounts "You shall not bear false witness against your neighbor." The Ninth Commandment Exodus 20:16 INTRODUCTION For at least 3,400 years and probably much longer scholars, philosophers, theologians, and others have pondered the question of truth. Wh
  • Adam Smith2
    Adam Smith2 The purpose of this report is to educate the reader on a great man, the "Father of Economics", Adam Smith. His two unequal works, Theory of moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations laid the groundwork for several economists today. His concepts, such as the "invisible hand" and opinions are widely respected and integral to economic theory three centuries later. Adam Smith was born the son of the comptroller of customs at Kirkcaldy, Fife, Scot
  • Computers1
    Computers1 Computers are one of the most important inventions ever. If computers had not been invented, technology would not be developed to its current state. Since the computers invention, society has changed drastically. Computer technology is so helpful, that it is even used to create newer, better computer equipment. Almost everything today is linked in some way, to computers. Before computers were invented, very little was known about outer space. With the technology we have now, we are le
  • Computers1
    Computers1 Computers are one of the most important inventions ever. If computers had not been invented, technology would not be developed to its current state. Since the computers invention, society has changed drastically. Computer technology is so helpful, that it is even used to create newer, better computer equipment. Almost everything today is linked in some way, to computers. Before computers were invented, very little was known about outer space. With the technology we have now, we are le
  • Cults in america
    cults in america Cults are commonly defined as a group or organization (sometimes religious) that has independent beliefs and is usually isolated from the normal society. In some ways, cults tend to form their own structured society with a messianic leader guiding the group. The strategy in which cults entice and control their members is one of the most fascinating things about cults. Cults have significant social effects on American society. To some, these effects are positive, but to others,
  • Electric Vehicles
    Electric Vehicles Matt Scott College Prep Environmental demand for cleaner air has put a heavy burden on the automobile, much improved by stringent exhaust stands but still a significant source of pollution. High cost, technological obstacles and the resistance of the public to abandon gasoline have deterred the discovery of new cleaner alternative fuels to help 5the environment. Electric Vehicles are the cleanest burning of the alternative fuel vehicles now available. They are an efficient way
  • Exchange Rates and Their Effect on Trade
    Exchange Rates and Their Effect on Trade Exchange Rates and Their Affect on Trade I. INTRODUCTION Objective The general objectives of this study are to describe recent trade problems and examine why these problems are related to, and affected by exchange rates. The study first examines the exchange rate and how it is determined. The study will explore, in detail, the agencies that determine these rates. This study will also present the pros and cons of different prices of goods and services in d