Premium Essay

Business Economics-Gm545 Paper Ii

In: Business and Management

Submitted By lili003
Words 639
Pages 3


Ch. 16
Question 5

“Frictional unemployment is important to any economy because people need time to search for new jobs, and employers need time to interview and evaluate potential new employees.” (Stone, 443). This involves short-term unemployment of people who are changing jobs, careers, or locations. The people looking for jobs are the jobless and are searching but have not found a job yet. Due to the mismatch of the characteristics of supply and demand in the job market this type of unemployment exists. The characteristics mentioned previously include skills, payment, location, timing, tastes, attitudes, as well as other factors. When people hold on for the ideal job extend frictional unemployment short-term while reducing unemployment long-term because they are less likely to change jobs. The good sign of frictional unemployment is that it signifies a healthy economy. This type of unemployment can only survive in a fast-growing economy. Frictional unemployment benefits workers by giving them time to search or jobs in which they are a good-fit while allowing companies to choose from the best talent available. Absence of frictional unemployment signifies a stagnant economy; one without growth, innovation, and tires skillsets.

Ch. 16
Question 6

“Hyperinflation is an extremely high inflation rate of at least 50 percent per month. Currently most economies refer to inflation above 100 percent per year as hyperinflation. According to the text “people who live on fixed incomes and creditors are harmed by unanticipated inflation, since it decreases the purchasing power of their incoming funds. By the same token, inflation helps debtors: it decreases the real value of their debts. These effects are amplified during periods of hyperinflation.”…...

Similar Documents

Premium Essay

Project Paper 2 Gm545

...contribution to GDP to the year with the largest contribution. It is gross private domestic investment. b. Which is the most volatile as a percent of GDP? The most volatile is net exports. c. Ignoring net exports, which component has grown the fastest as a percent of GDP since 1965? Consumption has grown the fastest as a percent of GDP since 1965. Chapter 15 Question 14 14. What are some of the limitations of the national income accounts in how they represent our standard of living? NIPA has some shortcomings. For instance, the national accounts ignore most nonmarket transactions: If a maid cleans your condo, GDP rises, but if you do the same job yourself, GDP is unaffected. And NIPA fails to account for the environmental impact of economic activity. Chapter 16 Question 5 5. Why is frictional unemployment important to have in any economy? Unemployment is split into three types. When people are temporarily unemployed because they are switching jobs, they are said to be frictionally unemployed. Frictional unemployment is short term, and it exists because there are always some workers who are voluntarily or involuntarily changing jobs. The natural rate of unemployment, or full employment, is that rate of unemployment where price and wage changes are consistent, and thus the inflation rate is equal to people’s inflationary expectations. It is also where unemployment is only frictional and structural; cyclical unemployment is zero. Economists often refer to the......

Words: 373 - Pages: 2

Premium Essay

Gm545 Business Economic

...aware there is high chance this will affect the whole economic system flow. President must cooperate with Federal Reserve for this specific action to negate of negative impacts may happen and let Federal Reserve more concern about their duty and task to deal with interest rates. Reducing taxes, not only personal taxes but also corporate taxes may trigger the spending power of the households and businesses because their budgeting expense increases. Of course, the government income also may have deficit and cause higher inflation. President must cut-off the expenditure for unnecessary expense from all sectors such as cultural activities, diplomacies, government press meetings, hosting dinners, etc. Tighten up the budget and keep low the government debt. Government must spending the budget into healthcare, education and technologies sectors because it effective to help the economic growth as people need healthy to keep productive, education to maintain career competitiveness and technologies to sustain the modern area growth competition. Government must care into domestic area to stimulate domestic production and buying more local goods even it is higher than import, maintain import level as lowest level necessary while increasing export. Government may buy more bonds; it can increase the money supply. Sell bond can raise the bank reserve as it will restrain the economic growth. All these action combines to stimulate the economic growth and lowering unemployment rate....

Words: 293 - Pages: 2

Free Essay

Economics Homework Ii

...HOMEWORK II Chapter 4, page 163, #8 A. a. Intercept Price t-Stat = -4516.3 / 4.988.2 = -0.90. Not significant b. Competitors Price t-stat = -3590.6 / 702.8 = -5.10. Significant c. Income t-stat = 777.1 / 66.4 = 11.70. Significant d. Population t stat = .40 / .31 = 1.29 Not significant e. Time t-stat = 356.1/92.3 = 3.85 Significant If the T-stat of the variable is greater than 2 then it is significant, if less than 2, it is not significant The regression model represents 93% of the total variation in pie sales based on the R2 number. B. EP = (20000 / 7.50) x (6.60 / 20000) = 0.88. If the price of pies increases by 1%, sales would fall by 0.88%. Cross-price elasticity = (20000 / 2300) x (2298.71 / 20000) = 0.99. If the population decreases by 1%, the price would increase by 0.99% C. Q = 356.1 - 0.90(7.50) – 5.10(6.50) + 11.70(40) = 784.2 in sales growth per quarter D. 93% accurate for predicting sales this quarter. It is unknown how accurate it will be in the future as the variables may change and therefore, reliance on the variables would also change. E. With a 93% accuracy for predicting sales I would be very confident in predicting sales of pies nationally. Chapter 5, page 208, #10 Q = L – L2 / 800 Cost of hiring an extra hour of labor = $20 per hour P = $40 A. MPL = 40 – 2L MRP L = 2(40 – 2L) = 80 – 4L 80 – 4L = 20 L = 15, so 15 hours of Labor should be used Output = 15 – 152 /......

Words: 377 - Pages: 2

Free Essay

Business Method Ii

...BUSINESS RESEARCH METHODS II Business Research Methods IIusiness Research Methods II A Simple Random Sampling method was used by the team in collecting sample data from a population that represent Mal-Mart customer. A simple random sampling is method of selecting items from the population such that every possible sample of a specified size has an equal chance of being selected (Lind, Marchal & Wathen, 2008). In this situation team B randomly selected a sample from the entire Wal-Mart customer population by going to store location to administer the questionnaires. During the course of the research the team uses the four levels of measurement scales in analyzing collected data. This paper will provide detailed information how the research impact Wal-Mart based on its customer shopping attitudes. Additionally, a detailed questionnaire suitable for the required sample will be presented (Appendix A). General Response Types From research about how the economy influences consumers who shop at Wal-Mart, the team devises the mapping rule that analyze the income of the sample of customers taken. For each concept or construct, different types of measurement are possible; the appropriate choice depends on what the team assumes about the mapping rules (Cooper, 2006). Based on the research findings, the appropriate general response type is classified. The classification mapping rules in this research is use to group or sort responses from the data......

Words: 1408 - Pages: 6

Premium Essay

Business Econ Gm545 Project Paper 2

...Business Economics GM545 May 2012 Chapter 16 Question 5 According to our text book, frictional unemployment is used to describe he short period of time that people are unemployed between jobs. Usually it is when someone quits a job for another job that they want and there is a short period of time that the person spends between jobs. This time is referred to as frictional unemployment. Even when people quit their jobs and don’t have another one lined up it can still be referred to as frictional unemployment if they are able to find a new job within a short period of time. (Stone, Gerald. CoreEconomics. Worth Publishers, 07/2011. p. 443). Frictional unemployment is a natural part of the employment cycle. It shows us that there are choices for both employers and employees. Typically when the economy is expanding there are jobs available and people feel comfortable moving from one job to another without much fear of being unemployed for too long. Structural unemployment is the opposite of Frictional Unemployment and refers to the extended periods of time that people spend unemployed (Nayab, 2012) Both employees and employers benefit from the presence of frictional unemployment. Employers can choose from talented pool of individuals and employees can choose where they want to work from the different options available. This leads to people finding jobs that are better suited to their needs and skills. Also when people don’t feel stuck in...

Words: 721 - Pages: 3

Premium Essay

Business Economics Gm545

...Business Economics GM545 Project Part 2 Fall Session A 2011 Mohamed Bah _______________________________ DeVry University Keller Graduate School of Management New Jersey North Brunswick An economic system should provide two social needs for the people it serves first an adequate production of goods and second an equitable distribution of those goods. National Income is the science of how to measure an economy’s overall economic performance. It mainly focuses on the overall level of production of goods and services. The Gross Domestic Product (GDP) per person tells us the income and expenditure of the average person in the economy, though it is not intended to be a measure of happiness or quality of life, It is good to measure the material well-being of the whole economy, because the more real GDP we have mean that we have higher standard of living by being able to consume more goods and services. In addition, we do have some factors or issues not in GDP that lead to the well being of the economy such as leisure, quality environment, volunteer work, and child rearing. Having measured these factors or issues above the national income accounting is faced with these limitations: • Measurement problem exist, • GDP measure economic activities not welfare, and • Subcategories are often interdependent. Finally, due to these limitations we faced these measurement errors: • Illegal drug......

Words: 836 - Pages: 4

Premium Essay

Practice Paper - Ecs Economics for Business and Management

...ECS1260-65 ECONOMICS (FOR BUSINESS AND) MANAGEMENT 2012-13 Seminar Exercises 13 (to take place in Week 16 starting 11th February 2013) 1) Please say whether the following statements are true or false: a. An economy experiences growth if it produces more goods and services than the year before. (T) (An increase in the production means an increase in the GDP) b. Investment in physical capital means hiring more employees. (F) (Human capital is used for workforce) c. The convergence hypothesis asserts that poor countries grow slower than rich countries, thereby widening the income gap between the two sets of countries. (F) d. Trend output fluctuates around actual output, since it is latter that matters most. (F) (Actual output fluctuates around Trend output due to change in trends) e. Real business cycles assume that cycles reflect fluctuations around output, while political cycles reflect fluctuations around the political establishment. (T) ( f. In the business cycle, recession follows boom, and is followed by slump. (T) g. During recession, business profits increase. (F) Multiple Choice: 2) An increase in living standards generally takes place when: a) GDP grows vigorously over a long period of time. b) GDP declines only moderately. c) GDP is volatile. d) GDP long-term trend is flat. 3) Which of the following is NOT an example of an increased standard of living? a) Lower life expectancy. b) Indoor......

Words: 428 - Pages: 2

Premium Essay

Economic Paper

...(ASEAN) LEARN FROM EUROPEAN UNION (EU) TO BE A SINGLE MARKET? By Group 1 Abstract This group paper attempts to show the background difference between ASEAN and EU. Despite the differences ASEAN still can learn from EU to be a single market. This group paper also attempts to discuss whether it is possible for ASEAN to be in a single market without facing major difficulty. Introduction In November 2002, ASEAN members held a meeting in Phnom Penh where the meeting participants proposed that the members consider the creation of an ASEAN Economic Community (AEC) by 2020. This is really nothing new, ASEAN has always carefully studied the progress of EU being a single market. Essential Differences Too often ASEAN is compared to the EU in an international context, however the objectives and motivation behind the founding are in no way to be comparable, below are some of the arguments: 1. EU was formed due the internal (regional) pressure to unify. Two world war in two generation has greatly motivate EU to form a political union, which started with unifying the economy. EU’s economy and political union was to the emerging from the devastation of the World War II. On the other hand, ASEAN formed AFTA to face the challenges from the external towards globalization and regionalization. The aim to create a loose network which without a legal basis under international law, to promote economic corporation, to avoid conflicts between member states and to develop strategies against possible...

Words: 1347 - Pages: 6

Premium Essay

Keller Gm545 You Decide Paper

...Keller Graduate School of Management Business Economics GM545 Online Graduate Course Summer Session A, July 2010 You Decide 14 August 2010 The deep recession that we have found ourselves experiencing in this example doesn’t deviate far from our current economic situation as we stand as a nation today. With economic analysts predicting that recessionary conditions may persist for at least another year, the economy requires some government intervention to put it back on track. With prices falling and unemployment rising, a combination of both monetary and fiscal policy will be needed in order to bring the nation out of this severe recession. Prices are falling, with the inflationary rate at -2.4%, making it evident that both businesses and individuals are not spending and overall aggregate demand (AD) is falling. The Economic Consultant to the President, Mr. Raymond Burke, has recommended that the President lower interest rates to further help businesses and consumers “get back on their feet.” There are some inaccuracies in what Mr. Burke is recommending. The President has neither the ability nor the authority to make adjustments to interest rates. The Federal Reserve (the Fed) is responsible for the discount rate and for setting the reserve requirements. I do not agree with Ms. Patricia Lopez’s (Consultant to the Federal Reserve) recommendation to leave interest rates alone, sell bonds and raise the bank reserve. Raising the bank reserve will discourage banks from......

Words: 633 - Pages: 3

Premium Essay

Business Economics

...KELLER GRADUATE SCHOOL OF MANAGEMENT MBA - PROJECT PAPER 1 NAME: - BOCKARIE LANSANA COURSE NAME: - BUSINESS ECONOMICS COURSE NUMBER: - GM545 FALL SESSION B-JANUARY-FEBRUARY 2011 Email 2. EHTICAL ISSUES IN BUSINESS One of these issues is the over reporting and under reporting of net income. The company management seeks to show that every quarter the net income of the business has grown. In order to show this they adopt unethical means and or illegal means in the operation and financial reporting system. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate earnings. This method will reduce the equilibrium price and increase equilibrium quantity for this company's products and services. The reason for this is that the wage is bill shown lower than what it actually is. This causes the supply curve to shift to the right. With an increase in supply, if the firm is a monopoly or an oligopoly or a monopolistic competition, there will be a decline in the price of the product of the firm. In case the firm is operating in perfect competition, there will only be an increase in the quantity the company sells in the market. The scenario described above indicates that there is a shift in the supply curve, in other words the costs are shown to be lower than what they actually are. The supply curve shifts to its right......

Words: 1064 - Pages: 5

Free Essay

Gm545 Paper 1

...J. Wesley Day GM 545 – Economics Keller Graduate School Professor, Suzzette Arnold March 19, 2011 The Bernard Madoff scandal occurred during a major economic crisis by operating an investment Ponzi scheme that took citizens, companies, and 501c’s for millions of citizens. A time that major banks and other firms performed poorly or failed altogether many bank executives still received high salaries, bonuses and severance. Which is an example of diseconomies of scale. This is all unethical business. While many workers are losing their jobs, taking pay cuts, or having their hours to decline, in part due to diminishing marginal returns. Authors from a Harvard Business Review article point out that managers are now losing the public trust. The article asks for colleges and universities to address management as a profession governed by codes of conduct that holds managers responsible to society for their unethical behavior. According to the business dictionary, ethics is the philosophical study of morality or standards regarding good character and conduct. In society when we apply ethical reasoning to decisions made by individuals and teams in organizations, the focus is on moral problems and dilemmas that are associated with the decision-making process that affects our society. The public image of business has been slipping since the EON scandal due to dishonesty and poor ethical standards. As companies are downsizing, they are putting more responsibility on...

Words: 868 - Pages: 4

Premium Essay

Frictional Unemployment in Business Economics

...Project Part 2 Submitted to: Matthew Anderson Submitted by: Ravi Verma Business Economics GM545 Spring 2011 session B Chapter 16 Question 6 1 Frictional unemployment, also known as search unemployment or voluntary unemployment, involves people in the midst of transiting between jobs, arising due to normal labor market mobility and expansion. Frictional unemployment is the short-term unemployment of people who are changing jobs, careers, or locations. This category of unemployment includes the jobless who have the skills and competencies to land a job, and are in the process of finding a job, but have not landed a job yet. Workers who look out for a new job when still retaining their old jobs do not count under frictional unemployment. This type of unemployment exists because of the mismatch between the characteristics of supply and demand in the job market. Frictional unemployment arises due to many reasons, such as: • Expansion of the workforce when young people get out of school or collage equipped with the necessary skills to land a job. • People quitting their jobs and relocating to new places. • People quitting their jobs owing to disagreements, lack of compatibility, or any other reason. • People losing their jobs because the company goes bankrupt, or owing to layoff or termination for any reason. Frictional unemployment never reaches zero because there always remain some companies with some unfulfilled......

Words: 953 - Pages: 4

Premium Essay

Business Model and Strategic Plan Part Ii: Swott Analysis Paper

...Business Model and Strategic Plan Part II: SWOTT Analysis Paper Go To My Messages Apps Software Martha A. Badillo de Parra BUS/475 07/13/2015 Garold Cole Business Model and Strategic Plan Part II: SWOTT Analysis Paper Go To My Messages Apps Software The Goal: To provide a Software application that makes people’s lives and business less stressful and more flexible. Also this product has the goal to reduce costs for any business. Internal Strengths: What makes my division and product to excel among the rest of the similar products that might develop during the promotion and selling of the product? - Citrix Systems became committed into the software industry, and ever since it has transformed itself into a beacon and example for others to follow. Not only it was the pioneer on this particular area, but it also became the market leader. The company elaborates network access devices and software mapped to enable Personal Computers, IP phones, smartphones, and many other devices to securely access applications across wired and wireless networks. Better yet, Citrix Systems offers their customers the freedom to access their products virtually from a variety of hardware systems and from almost any location in the world -Economically this product it is not that expensive due the fact that Citrix is an expert on software. Creating updates for the software and improving it would not be a big disbursement of money. Software can be distributed in two types: for regular......

Words: 1095 - Pages: 5

Premium Essay

Gm545 Business Economics - You Decide Week 6

...The deep recession, in this example, doesn’t deviate far from our current economic situation we are experiencing as a nation today. With prices falling and unemployment rising, a combination of both monetary and fiscal policy will be needed in order to bring the nation out of this severe recession. Due to falling prices, with the inflationary rate at -2.4%, it is evident that both businesses and individuals are not spending and overall aggregate demand (AD) is falling. The Economic Consultant to the President, Mr. Raymond Burke, has recommended that the President lower interest rates to further help businesses and consumers “get back on their feet.” I agree with lowering interest rates as Raymond Burke said because lowering interest rates should encourage consumption and investment. However, there are some inaccuracies in what Mr. Burke is recommending. The President has neither the ability nor the authority to make adjustments to interest rates. The Federal Reserve (the Fed) is responsible for the discount rate and for setting the reserve requirements. I do not agree with raising taxes as Kathy Lee states because that would mean less money would go to the economy, and as result there would be an increase in prices and/or job cuts. I also do not agree with reducing government spending as Kathy Lee said because this would exacerbate the situation with more contraction in the gross domestic product (GDP). I do not agree with Ms. Patricia Lopez’s, Consultant to the Federal......

Words: 501 - Pages: 3

Premium Essay

Business Economics

...Business Economics GM545 Chapter 3 - Everyone’s Gasoline Problem. Based on US Energy Information Administration data, annual supplied of US gasoline increases rapidly. In 2008, the United States consumed about 137.80 billion gallons (or 3.28 billion barrels) of gasoline. 1 Currently the retail gasoline prices about $2.83 per gallon after it went up to above $3.00 per gallon then dropped down. Mainly is the increasing price of crude oil where price varies within the year from $40 to $86 per barrel. Depend upon the circumstance, barrel oil could change rapidly; gasoline production and inventory are the two factors could make big impact on the price variation. Basically, there is huge demand on consuming of gasoline in US which source of supplies mainly from the Organization of the Petroleum Exporting Countries (OPEC) which has continued to produce oil to satisfy US consumers. In 1996, gasoline increased from $2.00 to $3.38 due to the Iraq-Iran’s war broke out. When Iraq and Iran’s war occurred, their capacity of producing oil were limited and reduced significantly, therefore a change in the supply determinant had triggered up the oil price of US and worldwide, as consequence, its results the supply curve shifted, increasing the price dramatically. On the demand side, U.S. is heavily depended on foreign oils. As a result, U.S. gasoline prices changed and varied accordingly to the turmoil of the world’ situation. When US consumers increase number of buyers,......

Words: 1036 - Pages: 5