Economic Model Of Supply And Demand - 788 Words

ECNM 612 MACRO ECONOMICS MIDTERM I. DEFINITIONS. Define any 10 terms. Give examples where pertinent. Macro Economics Opportunity cost Model / Theory Micro Economics Real capital Fiscal Deficit GDP Debt Net exports Consumer Price Index Producer Price Index Consumption spending Investment Inflation Production Possibility Curve II. ESSAY QUESTIONS. Answer any TWO questions. Answer all parts of each question that you choose. 1. a) What is Supply ? What is Demand ? b) Develop a model of a market, utilizing supply and demand. What are the dominant variables or parameters ? c) What is a shortage ? What is a surplus ? DEMONSTRATE d) Via the model, explain the dynamic changes that can happen in a market. Give examples. e) Relate the Micro economic model of supply and demand to the Macro economic model of Aggregate Demand and Aggregate Supply 3. a) What is Aggregate Demand ? b) Develop a model showing the importance and effects of Aggregate Demand on the overall economy. c) What is Fiscal Policy ? What are the goals of Fiscal Policy ? What are the tools of Fiscal Policy ? d) Explain the how expansionary Fiscal Policy would be implemented. e) What is the presumed result of the use of Fiscal Policy ? f) What are the criticisms regarding the use of FiscalShow MoreRelatedAggregate Demand and Supply Model - Economic Advisement Essay1647 Words   |  7 PagesAggregate Demand and Supply Model Economic Advisement With a nominal GDP estimated at more than 15 trillion it is clearly the United States economy is one of the largest in the world. A person must have lived in a cave underground for the past several years to not know that the current state of the nation’s economy is in desperate need of improvement. Many academic institutions have thought about how the economy arrived at its current state and how can it be restored. Some would advocate not usingRead MoreWeek 3, Learning Team - Aggregate Demand and Supply Models - Economic Critique1634 Words   |  7 PagesAn Economic Critique of Aggregate Demand and Supply Models An Economic Critique of Aggregate Demand and Supply Models The recent fall of the United States economy has created a society of fear, insecurity, and doubtful investors, retirees, and consumers world-wide. Economists from around the world have come together to solve world-wide economic issues and bring stability back to businesses, households, and the government. Economics teaches you how to approach problems; it does not provide whatRead MoreSupply And Demand Simulation Analysis1189 Words   |  5 PagesSupply and Demand Simulation The economy is a practice that relies on principles and concepts. The different focuses are based on a Macro and Micro perspective that creates the commercial and consumer environment. It is important to understand how these principles and concepts relate to the environment to create strategies that will, in return create profit and confident investments. The supply and demand simulation highlighted the important of just that from a commercial setting. Today’s housingRead MoreClassical Vs. Keynesian Models Essay922 Words   |  4 PagesClassical vs Keynesian models Two economic models of thought are classical and Keynesian models. Each model takes a diverse approach to the economic education of financial policy, buyer behavior, and government spending. The classical model, which traces its origins to the 1770s, was the first systematic attempt to explain the determinants of the price level and the national levels of real GDP, employment, consumption, savings, and investments. Classical economist Adam Smith and others assumed thatRead MoreSupply and Demand Essay1417 Words   |  6 PagesC Aggregate Demand and Supply Models OPTION 2: ECONOMIC CRITIQUE ECO/372 October 1, 2012 Option 2: Economic Critique The aggregate demand and supply model (AS-AD Model) is an economic model that has the capabilities to account for business cycles of expansion and recession, and helps to model macroeconomic policy. Aggregate demand is the total demand of goods and services for a specific period of time. Aggregate supply is the total supply of goods and servicesRead MoreAggregate Demand and Supply Models1095 Words   |  5 Pagesï » ¿Aggregate Demand and Supply Models Aggregate Demand and Supply Models ECO/372 Aggregate Demand and Supply Models The following report will detail out the current state of the U.S. Economy. 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The particular article explores the excess demand of chocolateRead MoreMacroeconomic Theories Of Macroeconomics And Classical Economics999 Words   |  4 PagesMacroeconomics is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets. This includes national, regional, and global economies. With microeconomics, macroeconomics is one of the two most general fields in economics. There are two major macroeconomic theories that economists use to describe the economy. Those theories are Keynesian and Classical. Each theory has a different approach to the economic study of monetaryRead MoreMba 640 Managerial Economics1427 Words   |  6 PagesMBA 640 (Summer IS 2010) MANAGERIAL ECONOMICS EXAM #1 STUDENT NAME: Exam is open book and open material. 1. Explain the interaction of Managerial Economics with other business disciplines, giving specific examples. Managerial economics has been defined by conventional theorists as a science that is all about how people make choices After you’ve defined managerial economics and it’s relationship to its economic theory. Managerial economics will interact with each of these business’sRead MoreAs/Ad Model1332 Words   |  6 PagesMacroeconomics – Chapter 10: The Aggregate Demand/Aggregate Supply Model * Keynesian Economics – Economists who focused on the short run * John Maynard Keynes - their leading advocate * the originator of macroeconomics as a separate discipline from micro * Classical Economists – economists who focused on long-run issues such as growth * Aggregate Demand Management – government’s attempt to control the aggregate level of spending in the economy * Equilibrium Income

Loving v. Virginia Is Marriage a Basic Civil Right

Marriage is an institution created and regulated by the law; as such, the government is able to set certain restrictions on who can get married. But just how far should that ability extend? Is marriage a basic civil right, even though it is not mentioned in the Constitution, or should the government be able to interfere with and regulate it in any manner that it wants? In the case of Loving v. Virginia, the state of Virginia tried to argue that they had the authority to regulate marriage according to what a majority of the states citizens believed was the will of God when it came to what was proper and moral. Ultimately, the Supreme Court ruled in favor of an interracial couple who argued that marriage is a basic civil right that cannot be denied to people on the basis of classifications like race. Fast Facts: Loving v. Virginia Case Argued: April 10, 1967Decision Issued:  June 12, 1967Petitioner: Loving et uxRespondent: State of VirginiaKey Question: Did Virginias anti-miscegenation law banning interracial marriage violate the Equal Protection Clause of the Fourteenth Amendment?Unanimous Decision: Justices Warren, Black, Douglas, Clark, Harlan, Brennan, Stewart, White, and FortasRuling: The court ruled that â€Å"the freedom to marry, or not marry, a person of another race resides with the individual, and cannot be infringed by the State.† The Virginia law was in violation of the Fourteenth Amendment. Background Information According to the Virginia Racial Integrity Act: If any white person intermarry with a colored person, or any colored person intermarry with a white person, he shall be guilty of a felony and shall be punished by confinement in the penitentiary for not less than one nor more than five years. In June, 1958 two residents of Virginia — Mildred Jeter, a black woman, and Richard Loving, a white man — went to the District of Columbia and were married, after which they returned to Virginia and established a home. Five weeks later, the Lovings were charged with violating Virginias ban on interracial marriages. On January 6, 1959, they pleaded guilty and were sentenced to one year in jail. Their sentence, however, was suspended for a 25 year period on the condition that they leave Virginia and not return together for 25 years. According to the trial judge: Almighty created the races white, black, yellow, malay and red, and he placed them on separate continents. And but for the interference with his arrangement there would be no cause for such marriages. The fact that he separated the races shows that he did not intend for the races to mix. Frightened and unaware of their rights, they moved to Washington, D.C., where they lived in financial difficulty for 5 years. When they returned to Virginia to visit Mildreds parents, they were arrested again. While released on bail they wrote to Attorney General Robert F. Kennedy, asking for help. Court Decision The Supreme Court ruled unanimously that the law against interracial marriages violated the Equal Protection and Due Process Clauses of the 14th Amendment. The Court had previously been hesitant to address this issue, fearing that striking down such laws so soon after striking down segregation would only further inflame resistance in the South to racial equality. The state government argued that because whites and blacks were treated equally under the law, there was therefore no Equal Protection violation; but the Court rejected this. They also argued that ending these miscegenation laws would be contrary to the original intent of those who wrote the Fourteenth Amendment. However, the Court held: As for the various statements directly concerning the Fourteenth Amendment, we have said in connection with a related problem, that although these historical sources cast some light they are not sufficient to resolve the problem; [a]t best, they are inconclusive. The most avid proponents of the post-War Amendments undoubtedly intended them to remove all legal distinctions among all persons born or naturalized in the United States. Their opponents, just as certainly, were antagonistic to both the letter and the spirit of the Amendments and wished them to have the most limited effect. Although the state also argued that they have a valid role in regulating marriage as a social institution, the Court rejected the idea that the states powers here were limitless. Instead, the Court found the institution of marriage, while social in nature, is also a basic civil right and cannot be restricted without very good reason: Marriage is one of the basic civil rights of man, fundamental to our very existence and survival. () ...To deny this fundamental freedom on so unsupportable a basis as the racial classifications embodied in these statutes, classifications so directly subversive of the principle of equality at the heart of the Fourteenth Amendment, is surely to deprive all the States citizens of liberty without due process of law. The Fourteenth Amendment requires that the freedom of choice to marry not be restricted by invidious racial discriminations. Under our Constitution, the freedom to marry, or not marry, a person of another race resides with the individual and cannot be infringed by the State. Significance and Legacy Although a right to marry is not listed in the Constitution, the Court held that such a right is covered under the Fourteenth Amendment because such decisions are fundamental to our survival and our consciences. As such, they must necessarily reside with the individual rather than with the state. This decision is thus a direct refutation to the popular argument that something cannot be a legitimate constitutional right unless it is spelled out specifically and directly in the text of the U.S. Constitution. It is also one of the most important precedents on the very notion of civil equality, making clear that basic civil rights are fundamental to our existence and cannot legitimately be infringed upon simply because some people believe that their god disagrees with certain behaviors.

MW corporation Free Essays

Structure and execute a DCF valuation of all the MW reserves using APV. How much are the reserves worth? Is your estimate more likely to be biased high or low? What are the sources of bias? Answer: The DCF valuation of all the MW reserves using APV Indicates that the net worth of the portfolio is around $516. 30 million. We will write a custom essay sample on MW corporation or any similar topic only for you Order Now The estimate Is more likely to be biased on the higher side. The data for the projections was collected by Morgan Stanley and Amoco. Thus, the probable undeveloped and possible reserves estimated may be different from the ctual reserves. Amoco can get higher valuation by projecting higher reserves. Also, Amoco and Morgan Stanley projected that the price of a oil barrel will continue to rise for the next 15 years from the current price of S 20. 4 per barrel to S 443 per barrel. This increasing value of per barrel can significantly increase the valuation of the oil fields. COSTS: The costs In the projections were estimated based on the historical costs and cash overhead savings that Amoco expected to save from the sale of MW petroleum. However, Apache had very low costs and was an efficient operator of properties. Also, since the MW fields were operated by Amoco; this would result In more potential savings to Apache. likely to biased on the higher side. The DCF valuation using APV is shown in the next page. Interest tax shields: Assumed coupon on debt 12. 32% Assumed initial debt 182. 7 Year 1 interest 22. 5 Tax rate 36% Year 1 tax shield 8. 1 Assumed cost of debt 12. 00% Growth rate -4. 06% Value of tax shield (perpetuity) 50. 4 Value of â€Å"Additional assets† 25. 0 Total value of MW 516. 3 2. How would you structure an analysis of MW as a portfolio of assets-in-place and options? Specifically, which parts of the business should be regarded as assets-in- place and which as options? The whole portfolio of MW consists of 5 parts: i. Proved developed reserves it. Proved undeveloped reserves iii. Probable reserves ‘v. Possible reserves v. Other opportunities options as capital expenditures are associated with proved undeveloped reserves, probable reserves and possible reserves, and the company can choose whether to make these expenditures basing on the then prevailing prices of oil and natural gas. How to cite MW corporation, Papers

Airjet Best Parts Essay Example For Students

Airjet Best Parts Essay For example, when I I stock prices increase, the value and dividends increase for common stock. However, the dividend does not increase for preferred stock cause with this type of stock, dividends are a fixed I percentage to par or face value. The payout of common stock dividends will change with increases and decreases in the stock market. If a company liquidates, common stock holders will likely I nothing because preferred stock holders and creditors will receivership share first. Common I I I stock holders will receive anything that is left to claim, which is usually nothing. Question 4 If Airiest Best Parts, Inc. Announce that their dividends will increase at the end of the year, I the stock price computed above would increase. An increase in dividends generates a higher I I I stock price, which in turns spurs future production and investment in that company. Fifth I required rate of return increases the stock value will decrease because many people (investors) prefer I less risk. When the required rate of return increases, it is because of an increase in risk from the perspective Of the investor. Investors would rather put their money into stocks that are less risky. I I I required rate of return increases the stock value will decrease because many people (investors) prefer I required rate of return is the rate of return that investors demand from a security (or investment) I s compensation for the amount of risk involved. When that rate increase, it means there is more risk involved. Changes in dividends will change stock price by either increasing it or decreasing it. We learned I I in class by using the Dividend Growth Model. The price of stock and their dividends go in the same direction. When dividends are increased, the price of stock increase and when dividends decrease, I stock price will decrease, Course project part I Task 3: Bond Evaluation Question I: I The coupon rate for Airiest Best Parts, Inc. Would be 6. 9228%_ I Calculation was N = 40 (since it is 20 periods semi-annually) I 1,062 | MAT -37. 50 (multiplying 1,000 by 0375 | = 3. 4614% (this is the semi-annual coupon rate. The annual would be 3. 614 x 2 The difference between coupon rate and YET of bonds mathematically is 5772% I I definition, the Yield to Maturity (YET) is the market required rate of return for I I bonds of similar risk and maturity and is quoted asana PAR. The coupon rate is the stated interest rate, It is usually equal to the VT M at the time of issuance. Investors I may demand a higher coupon rate to reflect the risk of investing their money, I Factors contributing to the rockiness of bonds are price risk, reinvestment risk, I liquidity risk, default risk, and maturity risk. A few examples: I A price risk involves the changes in price due to changes in interest rate. LET bonds are more risky than SST ones. Low coupon rate bonds are more risky than high coupon rate bonds. Coupon rate bonds. I Reinvestment rate risk involves the uncertainty concerning rates at which cash flows can be reinvested. SST bonds have more reinvesting rate risk than LET bonds and high I coupon rate bonds have more reinvestment rate risk than low coupon rate bonds. Question | Call provisions are positive covenants that Airiest states Parts, Inc. Could use in the true, Call provisions are deferred call and call premium. Negative consonants are the same as restrictive covenants. They are promise from the company that they will not something. The must be included in the bond I indenture. For example, a negative covenant may restrict issuance of new debt or payment of dividends, I Positive covenants specie actions that the company must take. The call premium is what the investor I I will be payday the company for early redemption of the bond. Deferred call is a provision that I I prohibits the company from calling the bond before a certain date.