Ask an Economist
You could allow the group to report this to the station master and get a Rs. 25 award. You could randomly check buses unannounced. You could offer a bonus to the ticket master for every ticket he has proof of having sold.
The writer has already shown that a good argument can be made either way. There is no correct answer the way the question is framed. The friends will debate the question until the restaurant closes. So, let's give them something else to debate...
The Iowa State University Estimated Livestock Returns (http://www2.econ.iastate.edu/estimated-returns/) provides estimates of cattle finishing and hog production costs and returns. The...
First, it is important to understand the difference between a few concepts. The demand is a function that describes that the quantity demanded (consumption) declines as the price increases. That is, the demand is the relationship between the...
I teach an Economics of Sports class here at Iowa State University. In my class, we discuss the economic structure of the NCAA and professional sports leagues in the U.S. You are correct that the NCAA is a cartel and so is a...
There are really two questions here: (1) what are the causes of economic fluctuations, generally? And (2) what role do wars and military spending play in these fluctuations?
Answering the first question is beyond the scope of this...
I am trying to calculate GDP for countries and the numbers don't seem to add up.
I am using the formula GDP = Consumption + Investment + Government spending + Imports - exports
I am using the example of France
It has a GDP about 2500 bn dollars per year.
Thus the components of C, I, G and X-Y should equal about 2500 right?
These are the figures that I have found
C = 1360, Investment = 20 per cent of GDP ie around 500, G= 1370
Frances trade balance is negative to about 55 bn per year and government borrowing is 85 bn
So if you calculate 1360 + 500 + 1370 - 55 - 85 you end up with 3090 which is more that 20 per cent more than the published figure.
So where am I going wrong in my calculations?
I was thinking it was something to do with PPP v nominal dollar values but the difference between the two is only 10 per cent whereas my figures differ by more than 20 per cent
Thanks for any help
Mick Cooke
Figures are from
C = https://en.wikipedia.org/wiki/List_of_largest_consumer_markets
I = https://en.wikipedia.org/wiki/List_of_countries_by_gross_fixed_investment_as_percentage_of_GDP
G = https://en.wikipedia.org/wiki/List_of_countries_by_government_budget
X-Y = http://atlas.media.mit.edu/en/profile/country/fra/
The main problem with your calculation is that you are using as "G" the French government's budgetary expenditure, which most likely includes large transfer payments. Transfer payments are not part of GDP. Another problem is that you are...
This question is in two parts: 1) How prevalent is the requirement for 100% giving of any amount; and 2) Do organizations raise more money if there is a 100% giving expectation?
Let me begin by stating that I’m not aware of any research...
The answer is no. It is not correct to conclude that Bukina Faso’s economy is supported by only 15% of the population. It is a common challenge in developing countries to appropriately account for employment and the economic contributions of a...
Effectively, you are asking: how can there be different prices across countries within the same currency zone? This may sound surprising because within the Euro common currency, for example, we label regions as countries and there is a price...
The American Communities Survey provides information on median household income
This is before taxes and transfers
American Fact Finder
I wanted to value a high-tech start-up of which I have the cash flows of the coming 6 years. I am not a VC just a post-grad student, so I decided to use the discounted cash flow method. To do so, I calculated the discount rate. For a high-tech start- up the discount rate = Rate of equity (which can be determined by the capital asset pricing model). So I calculated my discount rate, used it in the DCF model, and found an approximation of the value of the high-tech firm.
But I didn't take into consideration that the company sells their products globally. This fact has an impact on its beta factor, and consequently on the discount rate, and finally on the value of the firm!
One option is to use the International CAPM model, but my company is going to sell globally, so how do I know the impact of that to the discount rate? Any help would be very appreciated.
Thanks
If your company is based in the U.S., the valuation should be based on the standard CAPM. However, barring exceptional circumstances, one would expect the beta of such a firm to be closer to zero than the beta of an otherwise identical firm...
Let me start by reminding you that GDP is a measure of the total amount of goods and services produced in an economy, say the USA, in a year. So it sums the total value in dollars of everything that has been produced in the country in a given...
Let me start by saying that I have expertise in the economics of commercial fishing. I cannot speak to whether GDP will increase next year. If GDP does rise, there may be channels by which commercial boat building and therefore boat ownership...
GDP is the final $ value of all final goods and services produced in a year. Even if a service exists to help compliance with a regulation, it is included because the provision of that service, such as that performed by a tax attorney, is income...
Social welfare maximization in economics typically refers to the correct allocation of scare resources to agents (firms, individuals) so as to generate the maximum possible utility (or other criterion) for the agents. The term has no negative...
Minimum wages are wage floors set by law, not by the market. They, however, are subject to political pressure from citizens. If, say, hypothetically, all immigration, legal or otherwise, was stopped, then there would be a stronger demand to hire...
Also, is there a name for the sub-field of economics that studies how demographics is related to economy?
The question of how demographics relate to economic issues (e.g., poverty, economic growth) has been at the forefront of economics ever since its infancy as a science. For instance, Rev. Malthus (1766-1834) controversially suggested that...
If I understand your question correctly, you are asking about factors that will determine the success or failure of the Arena Football League. As with any firm or industry, ‘economic’ success or failure depends on the ability of the firm or...
None of us here have direct expertise on this issue. You may look at: http://www.longislandindex.org/data_posts/household-income-distribution/ for more...
Medieval cathedrals and other structures are indeed impressive works of construction, and to look at them is to marvel at human ingenuity. Medieval societies were in fact technological quite progressive, a fact documented for example in...
Hello:
Suppose you have N projects, each of them with possibly different but constant marginal costs (MC). Since the marginal cost for each project is constant, the average variable cost is also constant, and your profits can be expressed...
You have put your finger on an important topic that economists have been arguing about since Kenneth Arrow’s analysis of the incentives to innovate in “Economic Welfare and the Allocation of Resources for Inventions” in _The Rate and...
Souks and bazaars are in appearance competitive market places. The close proximity of shops selling virtually identical goods should drive price down. So, why do shops locate close to each other instead of locations where they would have less...
Regarding the first article, why are American farmers still incurring such high costs for production inputs and why do they really have no where to sell their grain and product to make any money? Secondly why are fertilizer inputs in particular so expensive when the second article talks about how our supply is expanding and we are producing more fertilizer than any other country? Shouldn't these input costs go down or be down because of such a high supply?
Lastly it seems that farm production has been peaking and they are doing extremely well in regards of yield and product output, consequently having no place to sell their grain. My question is where do Ag Economists forecast job growth will be greatest in the Agriculture Sector in the next five years? Which particular majors in certain sectors of the Ag industry will do the best and be in high demand?
Thank you for your time
While it is true that, in general, farmers are still facing high production costs. They have also seen some of those costs fall over the past couple of years. And it is not true that they have nowhere to sell their products. ...