Eco 372 Week 2 Assignment

INTRODUCTION Economic growth is defined as the increased capacity of an economy to be able to produce goods and services in comparison from one period of time to another. This is figured by the genuine Gross Domestic Product (GDP) and development, and is measured by utilizing genuine terms such as “Balanced Inflation”. These terms help to remove any distorted views on the perceived outcome of inflation on the cost of merchandises produced. Likewise, Economic growth is related to the high expectations in a person’s standard of living. If the standards are high, it wouldn’t be beneficial for the economy as the working class individuals will face a lot of trouble.

Firms finance investment (the purchase of new capital goods) by borrowing money. Therefore, if there is not saving funds for investment will

As a result of the lease, the company will be assessed an annual VAT amount of $ 93K on the annual lease payment. Additionally, St. John Mexico’s minimal taxable income will be increased by 44K due to the increase in the operating expense as a result of the inclusion of the rent expense. Consequently, St. John Mexico will incur an additional income tax liability of $13K. 3. Generally, Mexico imposes a 10% withholding tax on dividends paid to foreign parents.

This ratio is increased to 67.6% by 2015. Which are way higher than the industry average of 32.23% and sector average of 39.17%. This change is caused by the notes issuance and debts Costco entered. Firstly, Costco issued $3,500 million of Senior Notes in December 2012. Secondly, its Japanese Costco Subsidiary issued $102 million of promissory notes and got an approximately $102 three-year term loan.

Workers may not realize immediately that their purchasing power has fallen due to quickly rising prices, but over time, their expectations and understanding changes and they begin to supply less labor, thus resulting in the natural rate of unemployment and high inflation. Phelps illustrates this phenomenon in his expectations-augmented Phillips Curve. His contributions have better explained the relationship between unemployment

Without government intervention infant industries will not benefit from low taxes and incentive for exports and will fail to compete in the free trade causing unemployment in the country. Secondly with resource allocation, Chinese government controls the resources based on comparative advantage helping domestic firms to specialize based on cheapest resource available. The availability of the resources increases the output of domestic firms; this will improves the balance of payment of a country because of the increase in value of export compared to the import. Lastly the dynamic mechanism states that growth can be sustained by introduction of new technologies, foreign investments and from imports. The increasing number of foreign direct investment has benefited China in

The expansion will occur due to the change in the workers income caused by the federal minimum wage rise. When the income will grow the amount of spendings will grow as well. As the result, businesses’ profits will go up which will give them an opportunity to provide more workplaces. Thus people who seek jobs will be given a chance to find one. However, it would perfectly work this way only for a big businesses with higher profits level while small businesses will not feel the benefits that much.

Q3. How much value, if any, does Buffett derive from the credit agreement? There are two parts of the credit agreement, the 8-year term loan and the penny warrants. The $400 million term loan accompanying with a $45 million revolving credit facility will give Buffett a chance to earn at an interest rate of 10.5%.

What is net price of the 6 fireplaces? STEP 1: Subtract each discount from 100% 100% - 5% = 95% 100% - 10% = 90% STEP 2: Multiply them together. 95% X 90% 0.95 X 0.90 = 0.855 ( Net price equivalent rate ) Net price =

Wells Fargo’s CD rates range from a 3 month 0.01% APY to a 6 month 0.01% APY to a 1 year 0.05% APY. In addition, the APY in 60 months is .35%. Bank of America Bank of America’s most popular CD rates require a minimal deposit of $10,000. Bank of America’s rates range from a 3 month 0.01% APY to a 6 month 0.03% APY to a 1 year 0.05% APY. However, Bank of America’s APY caps at 48 months, with a maximum APY of 0.15%.

There are many cases of imperialism in this world, spanning from six continents except Antarctica, for obvious reasons. Imperialism is basically taking over that place using diplomatic or military force, which in layman terms, domination or complete control. Imperialism is a very interesting subject in history as it has its benefits and its own problems, so people hesitate when taking over the planet that has life because there will be benefits and its own problems. As for our statement on imperialism, this new planet is a go, since even though there might be problems. Some problems might include exploiting them, depleting their natural resources, and possibly slavery, as they are intelligent life that can be put to use.