Economics Answers

At the mall, there are 30 identically sized shoe stores. What is the four-firm concentration ratio?
At the mall, there are 29 identically sized shoe stores. What is the Herfindhal index?

What is GDP

a) Briefly discuss four aspects of the South Korea’s environment that favour investing
actively and four aspects that favour indexing.
b) Recommend whether GAC should invest in South Korea actively or by indexing
and justify your recommendation based on the factors identified in part a).
2. “Because corporations do not actually raise any funds in secondary markets, they
(secondary markets) are less important to the economy than primary markets.”
Discuss

aspects favouring active investment

aspects that favours indexing

Given the following variables in the open economy aggregate expenditure model, autonomous consumption (co)=200, autonomous investment (Io)=200, government spending (G0)=100, export spending (Xo)= 100, autonomous import spending (Mo)=100, taxes (Tp)=0, marginal propensity to invest (i1)=0.1, and marginal propensity to import (m1) =0.15.
1. if there's an increase in autonomous import expenditure from 100 to 200 resulting from an increase in the currency exchange rate, calculate the new equilibrium level of income and the value of the multiplier.
2.compared with the original equilibrium in part a, if the government decides to impose taxes (Tp) of 100, calculate the new equilibrium level of income. Hint: Remember that consumption has an autonomous component and is function of disposable income, Yd,where Yd =Y-Tp.

Global Advisers Company (GAC) is a registered investment counseling firm solely
involved in managing international securities portfolios. After much research on the
settling
trades made by nonresidents. Senior finance officials in the government are working
to deregulate capital flows and foreign ownership, but GAC’s political consultant
believes that isolation sentiment may prevent much real progress in the short term run.
a) Briefly discuss four aspects of the South Korea’s environment that favour investing
actively and four aspects that favour indexing.

If the GDP is greater than GDE, this means that imports are greater than exports

Verification checks assist by finding inconsistencies in the data. What other checks can a user make to review the accuracy of data input? 80–100 words

Question 1: Explain how each of the following events affect the supply of loanable funds curve (shift or move):
a) The economy is in a recession so people's disposable income is lower.
b) The stock market is booming so the people's wealth is higher.
c) Fewer college graduates are finding jobs so expected future income is lower.
d) The real interest rate increases.