Economics

During the Great Recession, like any other economic downturns, as unemployment rises, aggregate income declines causing a major decline in tax collections. On the other hand, with the rise in unemployment, spending on safety net programs rise. So, there are not too many good options available to resort the health of the national economy. It will be very difficult to defend cuts in the federal government programs and especially the programs geared to sustain the minimum of the standard of living for the recent “poor.” So, government needs to increase its borrowing. Deficit spending refers to government spending exceeding what it brings in federal income and corporate taxes during a certain period. Deficit spending hence increases government debt. Most economists accept that deficit spending is desirable and necessary as part of countercyclical fiscal policy. In such a case, government increases its borrowing and hence its deficit to compensate for the shortfall in aggregate demand. This is derived from Keynesian economics, and has been the mainstream economics view. Following John Maynard Keynes, many economists recommend deficit spending to moderate or end a recession, especially a severe one. When the economy has high unemployment, an increase in government purchases creates a market for business output, creating income and encouraging increases in consumer spending, which creates further increases in the demand for business output. (This is the multiplier effect). This raises the real gross domestic product (GDP) and the level of employment and lowers the unemployment rate. Government borrowing under such circumstances increases the demand for borrowing and thus pushes interest rates up. Rising interest rates can “crowd out” (discourage) fixed private investment spending, canceling out some of the demand stimulus arising from the deficit Write an essay analyzing the advantages and disadvantages of deficit spending and the effects of federal government borrowing on the economy i.e., the “crowding out” effect. Complete this essay in a Microsoft Word document, and in APA format. Note your submission will automatically be submitted through “TurnItIn” for plagiarism review. Please note that a minimum of 700 words for your essay is required. Your paper should be structured as follows 1. Cover page with a running head 2. Introduction: What is deficit spending and how does it work. 2.1. Advantages 2.2. Disadvantages 3. Crowding-out Effect 4. Conclusions: Do you believe that deficit spending helps or hinders short-term and long-term economic growth? 5. References

One of the most fundamental concerns with corporations is that they focus on short-term profit rather than investing for the long-term. This is a particular concern in the 21st century, where innovation is particularly critical for competitive success. Moreover, allegations of shorttermism have serious social repercussions. Long-term investments, such as developing blockbuster drugs, or training workers, typically benefit stakeholders as well as shareholders, but short-term profit only goes to shareholders. Short-termism can reduce a firm’s growth opportunities and give rise to failure. Incentives shape top managers’ corporate decisions, including investment decisions. Poor incentives can worsen corporate short-termism while right incentives can drive top managers towards long term investments that expand the growth potential of the firm and increase its market value. Investment decisions are though risky and frequently fail, which can impact the firm’s market value negatively. An optimal incentive system should equally lower the chance of imprudent investment decisions. Given this background, you task in the coursework is to: 1) Explain the short-termism hypothesis, critically explain whether principal-agent issues may contribute to short-termism, and explore its consequences for firm performance; 2) Analyse how modern firms seek to deal with the principal-agent problem. Your analysis should explicitly distinguish between the level and structure of pay. 3) Explain how firms may design a compensation scheme to reduce short-termism by combining reward instruments such as stocks, stock options, restricted stocks and inside debt. Justify your proposal by referring to academic literature. 4) Explain how your proposal can strengthen firm resilience and enable firms to better deal with deep recessions such as the Covid-19 recession. A number of notes will be placed on the course webpage to guide you through your research and help you with the literature on the short-termism hypothesis and CEO’s pay. A note will specify marking guidelines in details. You should follow the guidelines.

Effects of the Covid-19 Pandemic on Digitalization in Germany – A Qualitative Analysis based on Different Fields of Work

Demand and Supply Exercises Directions: Fill in the boxes (QD, QS, D, S, P, Q) in the next three demand and supply exercises. Based upon the event, what can we expect to occur for the market? Use a “0” (zero) if nothing will occur for that particular variable, a “+” (plus) if an increase, or a “-“ (negative) if a reduction. QD stands for Quantity Demanded, QS for Quantity Supplied, D for Demand, S for Supply, P for Price, and Q for Quantity.

rior to beginning work on this discussion, read David Malpass’s article, Five Big Steps Toward Faster Global Growth (Links to an external site.). Based on the information presented in Malpass’s article, respond to the following components: Would you agree or disagree with David Malpass’s suggestions? Why or why not? What challenges will the U.S. economy face given a higher debt limit for future economic growth? Describe what would happen to GDP, the unemployment rate, and the inflation rate if global growth declines. Your initial post should be a minimum of 300 words. Guided Response: Respond substantively (a minimum of 100 words) to at least two of your classmates’ posts. What is different or similar between your post and your classmates’ posts? What advice could you offer your classmates? Substantive responses use theory, research, and experience or examples to support ideas and advance the class knowledge on the discussion topic.

Uber is a ride-sharing service started in 2009. If you are not familiar with Uber, you can learn more about the services it provides at Uber.com.  Construct an eight-page analysis of Uber using the following criteria.  Analyze the market before Uber’s entry. Describe the inefficiency Uber exploited.  Explain Uber’s surge pricing in the context of shifts in supply and demand.  Evaluate Uber’s surge pricing in the context of price discrimination.  Apply the concepts of economies of scale and economies of scope to Uber’s business model.  Apply the concepts of game theory to Uber’s market.  Assess Uber’s potential for international expansion and potential trade policy issues.  Explain the incentive pay model Uber uses and how it affects the principal-agent problem.  Discuss any asymmetric information issues with Uber’s business model.  Your essay must be at least eight pages in length (not counting the title and references pages) and include at least five peer-reviewed resources. Adhere to APA Style when writing your analysis, including citations and references for sources used. Be sure to include an introduction. Please note that no abstract is needed.  If you wish to include a supply and demand graph in your paper, view the video How to Graph in Word for some guidance. Also, not that any graphs you include in your paper should be placed in the Appendix of your paper. How to Graph in Word video transcript If you need help identifying peer-reviewed publications, review the CSU Online Library resources Peer-Reviewed Resources and video How to Find Peer-Reviewed Resources (Transcript for Peer-Reviewed Resources video).

The FDA Approved a $ 300,000 a year drug The FDA Approved a $ 300,000 a year drug https://www.wsj.com/articles/how-the-fda-approved-a-300-000-a-year-drug-its-own-experts-didnt-believe-worked-1495116544 Please Read the WSJ article “How the FDA Approved a $300,000-a-Year Drug Its Own Experts Didn’t Believe Worked ” referenced above. Outline the FDA drug approval  process for the various types of drugs. How was this different in the case of the article? How do prescription  drug patents  affect the market for prescription  drugs? Is Pharmaceutical  R&D a process that adds value to the resources it uses?  What is moral hazard in economics?  it be applicable in this case? Does the Pharmaceutical Patent Process create economic value?  How ? Use FDA approval process timetable below to assist you.  Please analyse, elaborate and substantiate your answers Phase Aim Notes Phase 0 Pharmacodynamics and pharmacokinetics in humans Phase 0 trials are the first-in-human trials. Single subtherapeutic doses of the study drug or treatment are given to a small number of subjects (10 to 15) to gather preliminary data on the agent’s pharmacodynamics (what the drug does to the body) and pharmacokinetics (what the body does to the drugs).[32] For a test drug, the trial documents the absorption, distribution, metabolization, and removal (excretion) of the drug, and the drug’s interactions within the body, to confirm that these appear to be as expected. Phase 1 Screening for safety. Testing within a small group of people (20–80) to evaluate safety, determine safe dosage ranges, and begin to identify side effects. A drug’s side effects could be subtle or long term, or may only happen with a few people, so phase 1 trials are not expected to identify all side effects. Phase 2 Establishing the efficacy of the drug, usually against a placebo. Testing with a larger group of people (100–300) to determine efficacy and to further evaluate its safety. The gradual increase in test group size allows for the evocation of less-common side effects. Phase 3 Final confirmation of safety and efficacy. Testing with large groups of people (1,000–3,000) to confirm its efficacy, evaluate its effectiveness, monitor side effects, compare it to commonly used treatments, and collect information that will allow it to be used safely. Phase 4 Safety studies during sales. Postmarketing studies delineate additional information, including the treatment’s risks, benefits, and optimal use. As such, they are ongoing during the drug’s lifetime of active medical use. (Particularly relevant after approval under FDA Accelerated Approval Program)

The Measure of Economic Health [WLOs: 1, 2, 3] [CLOs: 2, 4] Gross domestic product (GDP) is defined as the value of final goods and services that are produced in a country’s territories within a certain time period, usually a year. In your paper, Assess GDP’s importance. Examine the shortcomings of GDP in measuring a country’s economic health? Discuss using GDP to evaluate the business cycle. Examine factors that may affect the business cycle. Evaluate the health of the current U.S. economy by its GDP, business cycle, and economic growth. The Measure of Economic Health paper Must be three to four double-spaced pages in length (not including title and references pages) and formatted according to APA style as outlined in the Ashford Writing Center’s APA Style resource (Links to an external site.).

Your company operates in a perfectly competitive market. You have been told that advertising can help you increase your sales in the short run. Would you create an aggressive advertising campaign for your product?

Answer in essay format in 100-300 words.  Right after Hurricane Katrina, John Shepperson thought he could help and make some money too. Mr. Shepperson bought 19 generators from his local store. He and his family then rented a U-Haul van and drove 600 miles to an area of Mississippi that was left without power in the wake of the hurricane. Mr. Shepperson offered to sell his generators for twice what he had paid for them, and people were eager to buy them. After a short time, police confiscated his generators. Mr. Shepperson was jailed for four days for price-gouging. His generators are still in police custody. 1.    Describe the situation in economic terms. 2.    What are the ethics in this situation?