Managerial Economics- Term Paper

In: Business and Management

Submitted By boysimpatiko
Words 306
Pages 2
A Real World Economic Problem
In other instances, an American administration, such as the current Bush Administration, supports the timber industry in the United States to assure political support in a critical general election (Goldfarb, 2002).
In the current environment, the softwood lumber dispute is further aggravated by supply shortages in the production of lumber in the United States stemming from environmental and habitat protection. Timber harvesting restrictions have the effect of curtailing the supply of lumber available for the market. In the case of harvesting restrictions related to the protection of spotted owl habitat, most of the timber affected is softwood lumber used extensively in the construction of houses. When the supply of lumber is restricted with no corresponding curtailment of demand, supply and demand analysis predicts that lumber prices will increase in the short run. This analysis, however, is very narrow and does not take into consideration the impacts of alternative sources of the product or substitutes for the product (Janigan, 2002).
In the case of softwood lumber used in the construction of houses, there are few viable substitutes. There is, however, for homebuilders in the United States a reliable alternative source of softwood lumber. The alternative source is Canada. Therefore, while curtailing the harvesting of softwood lumber in the Pacific Northwest did lead to a reduction in the domestically produced supply of softwood lumber in the United States, the action did not lead to an immediate reduction in the overall supply of softwood lumber because lumber suppliers in Canada made up the difference. As a consequence, prices for softwood lumber did not change at once because of the timber harvesting curtailment (Janigan, 2002).
The lumber companies in the United States, however, pressured the federal government of the United…...

Similar Documents

Economics Term Paper

...Term Project ON Euro Crisis: Origin, consequences and impact on world and Indian economy Submitted By: Ajay Sharma 2011SMF6623 Nitesh Goyal 2011SMF66 Sajal Agarwal 2011SMF66 Contents Description | Page No. | | | | | | | | | | | | | | | | | | | | | | | Impact on India | | Impact of FDI in India | | Snapshot of impact on India | | Conclusion | | References | | Impact on India Though India is primarily a domestic economy, India’s exports are positively linked to the global economic growth. This is likely to adversely impact India’s export growth in the coming months. However, growth will be only marginally affected by the slowdown in the euro region debt stricken countries as our exposure is low. Software services and other export oriented sectors would benefit from the rupee depreciation. FDI has not been significantly affected by the crisis while the FIIs are showing outflow in the last couple of months. International commodity price moderation is not being translated in domestic prices. Inflationary Concerns: Further, exchange rate depreciation would worsen the inflationary conditions in the economy. Therefore, the RBI would have to continue with its anti-inflationary stance in the near term if domestic conditions do not improve Source: World Bank, Ministry of Commerce, Government of India Interpretation of Graph - Graph 1 show that the share of the euro zone......

Words: 1556 - Pages: 7

Managerial Economics

...Managerial Economics MBA First Year Paper No. 2 School of Distance Education Bharathiar University, Coimbatore - 641 046 Author: Atmanand Copyright © 2007, Bharathiar University All Rights Reserved Produced and Printed by EXCEL BOOKS PRIVATE LIMITED A-45, Naraina, Phase-I, New Delhi-110028 for SCHOOL OF DISTANCE EDUCATION Bharathiar University Coimbatore-641046 CONTENTS Page No. UNIT-I ......

Words: 36898 - Pages: 148

Managerial Economics

...Written Paper - 1 MBA 532: Managerial Economics By Taranpreet Singh Jaggi Wagiha Taylor July, 2010 Managerial Economics is branch of economics that apply micro economics tools like demand and cost, monopoly and competition, the allocation of resources, and economic tradeoffs to help managers in taking better decisions. Managerial economics is the science of directing scarce resources to manage effectively. These may be decisions with regard to customers, suppliers, competitors or the internal working of the organization. It does not matter whether the setting is a business, non profit organization or a home. It is the application of micro economics to the managerial issues (Wikipedia, 2010) Written Paper on — Demand Analysis and Optimal Pricing The term demand signifies the ability or the willingness to buy a particular commodity at a given point of time. Demand is the desire to own anything and the ability to pay for it. In short, the demand function shows, in equation form, the relationship between the quantity sold of a goods or service and one or more variables (Blogspot, 2010). Q = f (P, P0, Y) The demand function does not indicate the exact quantitative relationship between Q and P, P0, and Y. Q = quantity demanded P = price of the product P0 = price of the other product Y = income of the consumer The demand equation can be used to test the changes in any of the explanatory variables. The demand curve is a special sub case......

Words: 2198 - Pages: 9

Managerial Economics

... MANAGERIAL ECONOMICS SYNOPSIS DR. S. BISALIAH* * Support for computerising the material by Mrs. R. Kalavathi as well as of Dr. N. S. Viswanath in providing the basic framework for developing this material is hereby acknowledged. Module 1 1. INTRODUCTION: 1. Economics: Science of Scarcity, Choice and Efficiency. • Scarcity of resources ( Choice. • Scarcity of resources ( Efficiency. Question: How to organize the system which promotes the most efficient use of resources? 2. Economics combines the rigour of science and poetry of humanities: Elaborate. 3. Three Fundamental Choice Problems of Economic Systems: • What commodities shall be produced and in what quantities? • How shall these commodities be produced? • For whom shall these commodities be produced? 4. Micro and Macro Economics: • Micro Economics: Concerned with the behaviour of individual economic units and their interactions – consumers and producers/business firms. ← Major type of interactions in the market: Between Buyers and Sellers: ← Three major components of Microeconomics: ← Product pricing ← Input (Factor) pricing ← Welfare economics ← Major uses of Microeconomics: ← Provides basic tools of economic analysis for application in special areas like Managerial Economics, Industrial Economics......

Words: 13634 - Pages: 55

A Term Paper on the Role of Entrepreneurship in Economic Development of Nigeria

...andy chuks Role of business in Economic Development in Nigeria[->0] Share This, Tweet, +1 or Recommend &&&&&&&&&The role of business or entrepreneurship in economic development in Nigeria is very crucial and forms the backbone of National development. Below are some of the roles played by business in developing the economy of Nigeria. - Employment Generation: In Nigeria privately own small, medium and large scale business has come to be known as major source employment creation, unlike pre independence era where government was the major employer. By doing this business has helped in reducing the rate of unemployment. Businesses employs people to help them achieve their aims and objectives, with the establishment of businesses in Nigeria unemployment rate have fallen to some extent. - Direct Creation of Wealth by Contribution to the Gross National Product (GNP): GNP is the total monetary value of all goods and services produced in a country within a particular year. Businesses contributes directly to this because with more businesses the GNP will increase, also as businesses grow GNP increases. A country's level of economic development in determined by its GNP. - Provision of Technical Innovation: Innovations has been engineering by businesses seeking to improve their products and services. These innovations has brought tremendous improvement in the economy of countries. - Providing Competition: Businesses compete among themselves to perform better, this......

Words: 292 - Pages: 2

Economic Terms and History Paper

...Economic Terms and History Paper Vicki Sellers HCS 440 July 10, 2014 David Disciascio Economic Terms and History Paper Health care economics have dramatically evolved throughout generations in this country. And those changes have caused a shift in how health care organizations to adjust their financial methods, strategies, and how they provide overall care. Health care economics has at times put a great burden on the health care industry such as the providers, the ones needing care, and the insurance companies who now help pay for that care. Health care facilities and companies continually have so many demands put on them with all the changes, it is not surprising that something has to suffer because of it and in our current economy, what seems to suffer most is the quality of care provided. Changes to health care and its delivery have also been impacted by technology, advances in medicine as well as different procedures and medicines . People vary in their belief systems in what has caused the changes to health care economics. Some individuals believe that is due to various changes that United States have gone through since her birth. However many others believe that a lot of influence has been due to advances in technology and how those changes have impacted health care. What is most important is having an understanding of these changes and the impacts they have made on the health care industry over all throughout history. Comprehending the history of and how......

Words: 1035 - Pages: 5

Managerial Economics

...result in people being motivated to perform (Barron and Hagerty, 2001). It is against this background this research is undertaken to examine the impact of training and manpower development on organisation productivity. 1.2 Statement of the Problem Training has been an important variable in increasing organizational productivity. Several researches have shown that training is a fundamental and effectual instrument in successful accomplishment of the firm's goals and objectives, resulting in higher productivity. Colombo (2008) also states that one of the potent factors militating against the good performance of employees is inadequate training. An employee may have the ability and determination, with the appropriate equipment and managerial support yet such employee may be underproductive. The missing factor in most cases according to Adeniji (2002), is the lack of adequate skills, and knowledge, which are acquired through training and manpower development. Adeniji (2002) further stated that training reduces employee turnover and promotes goal congruency, while lack of training increases absenteeism rate, low output, poor quality and results in high unit cost. Despite the importance of training and manpower development in employee productivity and organizational performance, training programs are not sufficiently supported by Nigerian public sector. These organizations consider the money they will spend on their training programs as waste rather than investment. They......

Words: 5380 - Pages: 22

Managerial Economics

...Assignment no: 509 Answer Managerial economics refers to the application of economic theory and the tools of analysis of decision science to examine how an organization can achieve it aims or objectives most efficiently. Importance of managerial economics Managerial Decision Problems Economic theory Microeconomics Macroeconomics Decision Sciences Mathematical Economics Econometrics MANAGERIAL ECONOMICS Application of economic theory and decision science tools to solve managerial decision problems OPTIMAL SOLUTIONS TO MANAGERIAL DECISION PROBLEMS Managerial Decision Problems Economic theory Microeconomics Macroeconomics Decision Sciences Mathematical Economics Econometrics MANAGERIAL ECONOMICS Application of economic theory and decision science tools to solve managerial decision problems OPTIMAL SOLUTIONS TO MANAGERIAL DECISION PROBLEMS Managerial enables the use of economic logic and principles to aid management decision-making. Managers are decision-makers and economics should be relevant to give practical guidance in arriving at right decisions. Every manager has to take important decisions about using his limited resources like land, capital, labour, finance etc. to get the maximum returns, therefore, managerial economics, concentrates on those practical aspects of micro-economics which help in decision-making. Managerial economics focuses on the most profitable use of scarce resources rather than on the achievement of equilibrium......

Words: 3719 - Pages: 15

Economics Term Paper

...The Economic Benefits of Addiction Treatment Versus Prison Economics 2302 CRN 11789: Chu Nguyen Fall 2013 Lisa Carpenter The Economic Benefits of Addiction Treatment Versus Prison In 2010, it was estimated that there were 22.6 million Americans that were addicted to illicit drugs. The economic effects of drug addiction are staggering. It affects everything from health care costs to prison costs, to unemployment and social costs. In the past, the solution to drug addiction was to lock up the drug addicts and dealers in prison, get them out of the eye of society and the problem will go away. The prisons became overcrowded and new prisons had to be built to accommodate them. In the 1990’s, states started to implement drug courts and began to address the problem of addiction. By treating the demand (the addiction), the supply, and all of the problems that go along with it will ultimately be greatly reduced. A woman, whom I will call Sarah, became addicted to the pain killer, Vicodin when she had her wisdom teeth out. For years, in order to feed her addiction, Sarah would go from doctor to doctor requesting the medication. Eventually, the addiction became so out of control that she needed more pills than the doctors were willing to prescribe her. At this point, if she just stopped taking the medication she would go into physical withdrawals similar to heroin. To get the quantity of medication she needed on a daily basis, she started calling in to the......

Words: 2971 - Pages: 12

Economics Term Paper

...[pic] TERM PAPER OF MICRO ECONOMICS ON BUDGET 2009:AN EVALUTION OF ITS EFFECTS ON AAM AADMI INTRODUCTION OF BUDGET 2009 The main challenges outlined by the Finance Minister, Mr. Pranab Mukherjee, while presenting his Budget speech for the short term and long term perspective of the Indian economy are: 1. To lead economy to high GDP growth rate of 9% p.a. at the earliest. 2. To deepen and broaden the agenda for inclusive development. 3. To improve delivery mechanisms of the government. In keeping with tradition, the Budget proposals are a mixed bag of the good and the bad. Some of the biggest disappointments in the Budget proposals are that there are no provisions for any reforms in the FDI policy, the public sector enterprises such as banks and insurance companies are to remain in the public sector and there is a projected fiscal deficit of 6.8%. The major positives are the proposals to abolish Fringe Benefit Tax (FBT), Commodities Transaction Tax (CTT) as well as to phase out surcharge on income tax starting with its elimination in this Budget from personal income tax. Another significant benefit is the clarification on taxation of Limited Liability Partnerships (LLPs). This synopsis prepared by the tax......

Words: 5890 - Pages: 24

Stock Market Development & Economic Growth - Term Papers

...of the best places to study. Not just because of its excellent rankings but also because of its International Management Program, which combines the academic theory with important soft-skills and meaningful knowledge about foreign cultures and the intercourse with them and all of that in a personal environment. On an international market that is driven by globalization the importance of teaching exactly those additional skills increased significantly in the last few years. You cannot do business globally without interacting with foreign cultures and for that you need to understand them. As a fundament for the applied degree program I can show both theoretical and practical prerequisites. For that I want to take this program for a long term results where I can implement this knowledge to expand my own business or my near ones to globally. I live in a third world country. So, getting proper business knowledge is very difficult for us. We get only theoretical knowledge rather than practical knowledge. There is a very few scope to survey various renowned company or visiting outside the country to adopt with different culture. If I get practical knowledge, I am sure within a decade I will be capable to establish a company and on the above perspective I think university of applied science is best option for me. After completing the degree program, My desire is to find a job in Germany. I may stay there maximum two years to get some practical experience about the professional......

Words: 391 - Pages: 2

Economic Terms Paper

...Economics Terms and Health Care History Joshua A. Barron HCS/440 May 08, 2012 Larry Gonzales Economics Terms and Heath Care History To understand how Americans came into being with the current health care system in place today, it would behoove society to look where it began, where health care economics had its genesis, and how it evolved into the monster it is today. “The United States spends more on health care, both per capita and as a share of Gross Domestic Product (GDP), than any other country in the world. In 2009, spending on health care reached a record high $2.5 trillion, or 17.6 percent of U.S. GDP” (Center for U.S. Health System Reform, 2011, p. 1, Para 2). The health care industry is the dominating industry in the United States and it is currently controlling and dictating the lives of Americans across the nation. Many workers are weighing the facts of switching jobs because they may have to switch health care coverage, and with the high cost of health insurance many people are left out or cannot afford it. Patients complain about the care they receive and are eager to award their physician with a lawsuit. This paper will discuss the history and evolution of health care economics and the timeline of health care funding. History of Health Care Economics “Who will pay for the dramatic changes to health care. In the past it has been our experience, for most individuals to pay their medical bills with private......

Words: 1199 - Pages: 5

Economic Term Paper

...ECO 100 – Principles of Economics COURSE DESCRIPTION Presents a survey of basic macro- and microeconomic principles and concepts. Reviews the economic dynamics of market forces affecting competition, different economic systems, the role of government in the economy, and economic aspects of international trade. Discusses the labor market, interest rates and the supply of money, and performance of a national economy. Examines the use of economics in business decisions, considering such principles as opportunity costs, diminishing returns, and the marginal principle. INSTRUCTIONAL MATERIALS Required Resources O'Sullivan, A., Sheffrin, S., & Perez, S. (2012). Survey of economics: Principles, applications, and tools (5th ed.). Upper Saddle River, NJ: Pearson-Prentice Hall. MyEconLab book key  Note: This book key comes with the purchase of a new textbook and is needed in order to access MyEconLab. Supplemental Resources Aaronson, D., Mazumder, B., & Schechter, S. (2010). What is behind the rise in long-term unemployment? Economic Perspectives, 34(3/4), 28-51. Andreyeva, T., Long, M. W., & Brownell, K. D. (2010). The Impact of Food Prices on Consumption: A Systematic Review of Research on the Price Elasticity of Demand for Food. American Journal of Public Health, 100(2), 216-22 Heyne, P., Boettke, P. J., & Prychitko, D. L. (2010). The economic way of thinking. (12th ed.). Upper Saddle River: Pearson-Prentice Hall. High, J. (2011). Economic Theory and the Rise of Big Business......

Words: 5350 - Pages: 22

Managerial Econ Term Paper

...sharing and transaction costs is straightforward. Transaction costs do not necessarily increase with an increase in relation specific investments. Empirically we found that Japanese automakers incur lower transaction costs than U.S. automakers even though their suppliers are more specialized to them. Market competition in the auto industry centers on two strategic variables: (1) product variety, design and quality, and (2) transactions price, which is manipulated and changed to boost sales. Automakers must lure and maintain a solid customer base, building allegiance to brand name in an effort to maximize profits in the long term. Maintaining high customer repurchase rates is important and critical for long-term profitability in the industry. Therefore, automakers attempt to attract and keep customers from the purchase of their first car in their late teen ages until retirement and thereafter. Product variety and design at all of the major automakers spans the full spectrum from small to full-sized cars. For example, Mercedes, BMW, Lexus, Infiniti, and Acura , Limozene capture one third of the upscale market in the United States, whereas Buick, Ford, Mercury, and Toyota are known for their family-styled traditional cars. To attract and lure customers to a brand, small cars are at times used as a loss leader; that is,......

Words: 2083 - Pages: 9

Term Paper on Managerial Functions and Skills

...difficulties as he used to monitor that his students are focussing on his class lectures. He used to ensure that all the class activities are going as planned and the betterment of his students is his only goal. This monitoring activity of my teacher is a Mintzberg Managerial role. • Moreover my teacher was a very good negotiator, which falls under the Mintzberg Managerial role. He always negotiated with us before taking any decisions such as taking quizzes, mid-term or final exam dates, assignment submission etc. He always made sure that we are all comfortable of his decisions that he used to take mainly discussing. • In addition, another Mintzberg Managerial role that he played was the figure head. Although he was not in post of vice chancellor or any other higher posts, he always remains as a unique character to us only for his actions and the effective managerial skills. • Lastly, the most important skill that he had was the human skill. As a teacher he had to understand our mentality and the way of our thinking in order to have a better interaction with us. To conclude, rather than being a successful manager my teacher was always been an effective manager. He was a respectful person from whom we could learn his managerial skills and abilities in order to be a prosperous manager like him one day....

Words: 383 - Pages: 2