Economic discussions

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  • Political economy or economics is a study of mankind in the ordinary business of life; it examines that part of individual and social action which is most closely connected with the attainment and with the use of the material requisites of wellbeing. Thus it is on the one side a study of wealth; and on the other, and more important side, a part of the study of man. For man's character has been moulded by his every-day work, and the material resources which he thereby procures, more than by any other influence unless it be that of his religious ideals; and the two great forming...

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  • Chapter 16 - Real-world competition and technology. After reading this chapter, you should be able to: Define the monitoring problem and state its implications for economics; discuss why competition should be seen as a process, not a state; summarize how firms protect monopoly; explain why oligopoly is the best market structure for technological change.

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  • With the wide swings in the stock prices in recent years, students of money and banking have become increasingly interested in what drives the stock market. As a result, I have expanded the discussion of this market by describing simple valuation methods for stocks and examining recent developments in the stock market and the link between monetary policy and stock prices.

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  • The Economics LTSN invited me to write a case study discussing the challenges and rewards of teaching economics to MBA (Master of Business Administration) students. Why a case study about MBA teaching? Certainly, it is an important market and has grown rapidly. More to the point, teaching MBA students poses particular challenges, but equally can be exceptionally rewarding

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  • Discussion Questions & Answers: Cf: F & O (2005) and F, O, & F (2002) Q1. Why should a tax on gasoline provide a larger incentive to reduce air emissions from motor vehicles than an annual tax on owning a vehicle? Answer: The answer depends upon the magnitude of the fuel tax relative to the vehicle tax. A fuel tax targets the three components of emission reduction (i.e. a) number of vehicles on the road; b) miles per vehicle; and c) emissions per mile). On the other hand, an annual tax affects only the marginal decisions to put a car...

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  • Economic thinking is all about making difficult choices. Critical economic thinking is all about being aware of how you think about economic issues so that you can make the best decisions possible. All of us engage in economic thinking whether it is shopping for ourselves, making business decisions that affect our fellow workers, or deciding on government policies that affect the entire nation. Of course such decision making is not done solely from an economic perspective. Shopping decisions are affected by a variety of cultural influences.

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  • As we wrote in a previous preface, there are two main reasons for pro- ducing a new edition of a textbook. First, the subject may have moved on – this has certainly been true in the area of natural resource and envir- onmental economics. Second, experience in using the text may suggest areas for improvement. Both reasons warrant a third edition now. We will say nothing here about the ways in which the subject area has ‘moved on’ except to note that it has and that you will find those changes reflected in this new edition.

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  • An introduction to the study of environmental and natural resource economics, designed to be accessible to students who have completed a two-semester introductory course in economics or a one-semester introductory microeconomics course. Treats intertemporal optimization within a discrete-time, mathematical programming framework, relegating mathematics beyond simple algebra to appendices, and includes exercises, answers, and discussion questions.

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  • This paper considers the main elements of the standard pattern of fi nancial liberalization that has become widely prevalent in developing countries. The theoretical arguments in favour of such liberalization are considered and critiqued, and the political economy of such measures is discussed. The problems for developing countries, with respect to fi nancial fragility and the greater propensity to crisis, as well as the negative defl ationary and developmental effects, are discussed.

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  • Discuss how incentives af fect people’s behavior The word economy comes from the Greek word for “one who manages a household.” At first, this origin might seem peculiar. But, in fact, households and economies have much in common. A household faces many decisions.

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  • A diserttation submitted in partial satisfacion of the requirments for the degree Doctor of Philosophy in economics I then present evidence that this measure represents a binding constraint on parents’ ability to exercise Tiebout choice. Finally, I discuss the SAT data that are the primary source of information on student outcomes across schools.

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  • We do not find economically or statistically significant differences in fees (expenses, loads, or a measure of the total ownership cost of mutual fund shares) between SRI and similar conventional funds. Therefore, either there are no significant differences in the way fees are set for SRI and conventional funds, or the effects of those differences cancel out on average. Consistent with the results for before-fee performance and fees, we find that SRI funds obtain a higher after-fee risk-adjusted performance in terms of four-factor alpha than similar conventional funds. ...

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  • Second, the sample period in this study covers a full business cycle, thereby providing a better indication of the relative variability of lending activities experienced by commercial banks over this period. Brewer, Minton, and Moser (2000) document a universal downward trend of C&I lending over a sample period of 1985 to 1992, a period during which the economy experienced a significant cyclical downturn.

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  • Discovering Artificial Economics is an informal introduction to the ideas of modern systems theory and self-organization as they apply to problems in the economic realm. David Batten interleaves anecdotes and stories with technical discussions, in order to provide the general reader with a good feel for how economies

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  • Chapter 11 - Fiscal policy. After reading the material in this chapter, you should be able to: Identify key differences between the private sector and government, describe the short-term impacts of increased government spending and use the multiplier effect to calculate the effect of fiscal stimulus, summarize the limitations of using increased government spending to stimulate growth, discuss the ways that changes in tax rates affect the economy,...

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  • Chapter 12 - Monetary policy. After reading the material in this chapter, you should be able to: List the three uses of money, describe the history and structure of the federal reserve system, identify the major goals of monetary policy and list the policy tools used by the federal reserve, explain how changing the fed funds rate can affect the economy, discuss how the Federal Reserve can use direct lending to fight a financial crisis.

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  • The audit work required for a live application review is very similar to that undertaken for a system under development with one main exception. When auditing an application under development, there is little opportunity for detailed audit testing. Audit work will focus on evaluating the adequacy of security and control using discussion and a review of technical documentation. The testing phase of the project may allow some scope for control testing, but this is artificial.

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  • We’ve modeled 2 ends of the market structure: Competitive market and monopoly. Now we look at cases in between ( N = small ). Oligopoly is market or industry dominated by a small number of firms, whose decisions (price, output, marketing) are interdependent. In chapter 5, we will discuss this problem.

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  • This chapter examines how the financial system works. First, we discuss the large variety of institutions that make up the financial system in our economy. Second, we discuss the relationship between the financial system and some key macroeconomic variables notably saving and investment. Third, we develop a model of the supply and demand for funds in financial markets.

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  • Chapter 4 discuss the social costs of a monopoly and indicate its relevance for "deregulation", outline the characteristic features of a natural monopoly, discuss the case for and against regulating a natural monopoly, explain the meaning of the "structure-conductperformance" (SCP) hypothesis and discuss its relevance for competition policy in South Africa, explain Demsetz’s "efficiency hypothesis" and discuss its relevance for competition policy generally.

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