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International Baccalaureate: Economics
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For example, in the prisoner's dilemma, each player has a dominant strategy. Payoff- In any game, payoffs are numbers which represent the motivations of players. Payoffs may represent profit, quantity, "utility," or other continuous measures (cardinal payoffs), or may simply rank the desirability of outcomes (ordinal payoffs). In all cases, the payoffs must reflect the motivations of the particular player. R�wnowaga Nasha (ang. Nash equilibrium) jest to profil strategii teorii gier, w kt�rym strategia kazdego z graczy jest optymalna, przyjmujac wyb�r jego oponent�w za ustalony. W r�wnowadze zaden z graczy nie ma powod�w jednostronnie odstepowac od strategii r�wnowagi.
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A scrappage scheme in Germany - which offers car owners �2,500 (�2,263) for getting rid of any vehicle over nine years old - has attracted more than half a million buyers, with sales soaring 40% there in March. The SMMT estimates that 280,000 Britons would take advantage of a similar programme over an 18-month period. This would cost around �560m, a figure the SMMT told the Guardian would involve a net cost of �150-160m. The rest of the money would come from the VAT charged on new cars.
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I say unto them that believe so, woe unto you. This is why. Leaders in this school of thought have failed to appreciate the role of uneconomic factors in bring about the credit crunch. Vices that seem to be bred by capitalism such as corruption, greed, selfishness and lack of respect for human life are also bred by our cultural beliefs and cultural organization (De Soto, 2000). Capitalism as we know of it today puts us different from where we would have been without it. Big corporations such as Microsoft and Coca Cola as the best examples of the achievements of capitalism among many others have literally revolutionalized life in its entirety.
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Thus , the marginal social cost of production is greater than the marginal private cost. The marginal social cost is equal to the marginal private cost plus the external costs. We can clearly see from the diagram that the marginal private costs for the firm are lesser than the marginal social costs. Thus, there is a cost to the society which is caused by the pollution of the river due to the industrial waster generated by the firm. This may result in diseases like Jaundice , Cholera in the community and may hinder local tourism.
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With this system there is no way that Mali will have a huge economic growth for a while. Limited infrastructure also hampers development prospects. For example when transportation and road systems are poor many people would not be able to gain education. A next key barrier to growth and development is international financial barriers and one of the major problems to growth and development in developing countries is 'Indebtedness' in other words it is the amount of debt repayments the LEDC countries have to make on money that was borrowed in the past.
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Thus more industries emerge in urban areas, a reason for urban biased development: 10 of the nation's top metropolis accounted for 30% of government's spending on infrastructure. With China's strong outward-led growth strategy, demand for industries that have a comparative advantage increase, eventually the urban bias will worsen. According to "trickle down theorists" the early stages of industrialization must be accompanied with inequality; as urban industries have a higher productivity, it should produce. Yet even as the general population of China experiences an increase in income, there are reasons that the trickle down effect will fail and inequality will not be resolved.
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Rubber market in producing country Prubber S' S S'', Es < 1 S shifts due to changes in weather P' P fluctuates greatly P P'' Drubber, Ed < 1 q' q q'' Qrubber Since total revenue (TR) equals price times quantity, we see that when the demand is inelastic, rubber farmers will have a loss in incomes when supply increases and hence prices fall. Yet supply of rubber will increase in the long run as the number of countries increase, meaning more suppliers enter the market.
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Internal economies of scale are enjoyed by Novartis for the following reasons. Firstly, as Novartis becomes larger, it would increase its production quantity by bulk buying larger numbers of inputs, thus gaining from commercial discounts. Interest rates from borrowing will also be lower as the firms will have more assets and it would be less risky to lend to them. Secondly, with a larger scale specialists can be employed to monitor the production, leading to efficient production. Also, since Novartis is based in Switzerland, Hexon in Germany and Eon in US, by increasing the firm's geographical presence it is diversified into these different countries with different market demands, so the risk of fluctuating demand is lower and more stable.
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An ad valorem tariff refers to a tax that is expressed as a percentage of value of the commodity. The purpose of tariffs is to raise the revenue to finance the activities of the government; this can be imposed on both imports and exports. Another purpose is aim at restricting import. This will result in higher prices of imported goods relative to the prices of domestically produced goods. This will encourage domestic consumers to buy domestically produced rather than foreign goods. This in some way partially protects domestic industries. Considering the effect of a protective tariff in a case of a small country, it is a price taker and foreign industry is willing to supply as large a quantity as the country wants to buy at the world price.
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This is illustrated in the following diagram: As is evident from this diagram, the SRAC curves have a U-shape. The first part of the curve shows that the average costs decrease as the output increases. Yet in the second half of the curve the opposite is shown; the average costs actually increase as the output continues to increase. This has to do with diminishing marginal returns (DMR). Up to the point on the curve that hits the dotted line, the marginal physical product (which refers to an addition to total physical output as a result of using one more unit of input)
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According to the National Cancer Foundation of the United States "Approximately 3,000 lung cancer deaths occur each year among adult nonsmokers in the United States as a result of exposure to secondhand smoke" (National Cancer Institute) The National Cancer Institute also states that not only does second hand smoke increase the risk of lung cancer but research shows that it also increases the risk of adults developing breast cancer, nasal sinus cavity cancer. Second hand smoking not only affects adults but children too.
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This will tell us whether or not the branded retail stores (which are present in the mall itself) have made an impact on local clothes stores, and whether it was positive or negative. How did the malls affect the demand for the products in the local retail stores? This is an example of the different aspects that could be examined during this investigation. Another aspect to be looked at could be whether the local stores would be able to endure the heavy competition brought in by the new malls set up in the area. It is important to realize that malls have an advantage in terms of advertising and capital (in terms of labor).
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Mr Kant said Jaguar and Land Rover managements remained autonomous but he felt they should pursue the India opportunity quickly to help make up the deficit in western markets. Jaguar, which has recently released popular new models, has been selling relatively well in spite of the crisis but Land Rover sales have been hit badly. Mr Kant suggested Tata Motors also facilitate other opportunities for its new subsidiary, particularly Land Rover, in areas such as defence. Tata Motors is already a significant supplier to India's defence industry.
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Comparative advantage is the ability for a person or country to produce a specific product at a lower opportunity cost than a competing person or country. The impact of trade liberalization on comparative advantage would be that it would benefit the countries involved. In the ideal example for comparative advantage, we assume that it is a free market, where countries are trading in perfect competition, with no barriers and tariffs. In the theory of comparative advantage, resource allocation is a key factor.
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However, the government faces another dilemma with the expensive bailout. The opportunity cost involved in 85 billion tax dollars that could be spent elsewhere. Opportunity cost is defined as the relinquishing of the next best possible alternative in making a choice of 'Alternative A' over 'Alternative B'. By investing 85 billion into rescuing AIG, the government is passing on the opportunity to spend the money on other purposes. The government could have used the funds to create and improve infrastructure like roads, communication and power management instead of expending it on fixing the mistakes of one big institution.
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the shortage had risen due to erratic production of pulses globally and nearly 3/4 million tonne of gap between the demand and supply. "The demand for pulses has rose over 20 million tonne with domestic production not exceeding 13 million tonne. Even the imports are not meeting the domestic demand adequately," he added. The report pointed out that the imports of pulses are growing costlier for two reasons: on one hand, the output of pulses in the country has not spiked and is still staggering around 13 million tonne per annum, while the demand is nearly 20 million tonne.
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I am particularly worried at the 56,000 rise in the number of young unemployed people. These are school leavers who are unable to get a job or claim benefits, which is why the claimant count has not risen even faster than it has," he said. The number of Britons out of work and claiming jobless benefits rose by 31,800 last month to 939,000, the eighth monthly increase in a row, and August's rise was revised higher to 35,700. The City had expected a 35,000 increase for September. This so-called claimant count measure is always lower than the broader, internationally recognised ILO measure which includes people not claiming benefits, because some unemployed people are not entitled to claim benefits, or choose not to do so.
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�31.81 Concessions - Senior Citizens, Students and Visitors with disabilities �9.04 GROUP RATES (PEAK TIMES until 28th October 2007) for 15 paying visitors or more Adults �9.95 Children (3-15) & Concessions �8.95 OFF PEAK TIMES (28th October 2007 - 20 March 2008) Adults �7.95 Children (3-15) & Concessions �6.95 The Zoo is open all year from 10.00am except Christmas Day & Boxing Day. From Sunday 28th October to 31st December (excluding Christmas Day & Boxing Day) the last admission is at 3:00 pm. Strengths In General It is very interesting issue education is a key theme for Chester Zoo.
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State governments must come forward and offer low sales tax on jet fuel to airlines in return for an assurance that the latter would neither cut flights, nor hike fares to those places," said a senior AAI official. In fact, the huge 30% to 40% growth recorded in past four years (after the advent of budget carriers) was substantially due to airlines rushing in with flights to places where bus and rail users could be shifted to air by the lure of low fares.
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the greater the quantity demanded and the higher the price, the less the quantity demanded Thus, in the diagram below, as the price falls from OP1 to OP2, the quantity demanded increases from OQ1 to OQ2. If price were to rise from OP2 to OP1, the quantity demanded would fall from OQ2 to OQ1. Individual demand - comes from an individual and is affected by desire, willingness and ability to pay Market demand (whole market) - millions of individuals, :.
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(The quantity / trade volume may somehow decrease from q1 to q2, too. But the precise determination needs more accurate data.) "Lead the Federal Reserve to cut its benchmark interest rate" whereas the ECB is considering raising the rate is another one of the greatest factors that pushing down the exchange rate of dollar against other main currencies. This can be explained in two ways. In terms of the price of money3, decrease in the interest rate of USD means the depreciation in the value of dollar.
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in Manila. The Philippines' $117 billion economy may expand 7.1 percent this year, UBS AG said last week. That exceeds the forecast of the government, which is increasing spending on roads and ports to attract investors. Funds sent home by nationals working abroad is boosting consumer spending. Bangko Sentral ng Pilipinas kept its benchmark interest rate unchanged at 6 percent on Aug. 23 after lowering borrowing costs in July for the first time since 2003 to spur growth. The expanding economy and ``manageable'' inflation allows the central bank to ``maintain a neutral policy stance,'' Governor Amando Tetangco said on Aug.
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Another example would be a car crash caused by a person under the influence of alcohol or drugs. The other party involved in the crash, who had been driving safely, would have negative externalities as they might be killed or severely injured. An example of a business creating a negative externality is if it takes money from one area of the company, for example the marketing department, in order to fund another, for instance the pension department. The depletion of one department to provide for another falls into the category of moral hazards2. In situations such as the ones mentioned above, the marginal social cost is greater than the marginal private cost, because the costs are greater to the community than to the individual.3 This can lead to the good and/or service being over consumed.
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Exports of finished manufactures are down 3.8 per cent. It is China, Hong Kong and South Korea who are demanding UK exports. The value of exports to the Euro-zone big-four is declining." Despite the insatiable Chinese demand for capital goods (which has also had beneficial impact on German exports and growth), China's trade surplus reached a record of $26.9bn (�13.5bn) in June, twice as high as a year earlier, as Chinese manufacturers rushed to fill orders before reductions in official export incentives came into force on 1 July.
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==> In order to attract foreign investors, Special economic Zones (SEZ's) were set up. ==> These reforms, introduced in 1978, were not because of any compulsion from the World Bank or IMF, as was the case in India-NEP in 1991. It was because the new leadership in China was not happy with the slow growth rate under the Maoist rule, which was based on de-centralization, self sufficiency and shunning foreign technology, goods and capital. * Present/Sectoral Contribution to GDP: ==> China has the second largest GDP (PPP) in the world, of 7.2 trillion dollars, while India's GDP in PPP is 3.3 trillion dollars.
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