Intermediate Macroeconomics Coursework Example | Topics and Well Written Essays - 1000 words

Intermediate Macroeconomics - Coursework Example (c) Calculate and graph the ratio of each of real residential investment, real non-residential investment and real inventory investment to real GDP. How do these components rank in terms of variability? Provide some explanation. 2. Consider a consumer who maximizes a utility function that depends on leisure and consumption, and who is subject to a budget constraint. The government imposes no tax on workers on wage rates up to a certain number of hours worked. Beyond this number of hours the government imposes a proportional tax rate. 4. In the Solow model, suppose there is government spending G=gN where g is fixed, and N is the number of people, and S=s(Y-T), where T=G. Show with a diagram that there are two possible equilibria, but that only the larger is stable. What is the effect on growth rates of an increase in s? 5. Suppose that part of people’s time is taken up with a given level of childcare, so that this cuts into leisure and working time. Suppose now that government raises lump sum taxes to pay for this itself. From a consumer’s perspective, assuming that wages are unchanged, what will be the effect on the consumption/leisure tradeoff? A parent who stays home to care for his or her children receives home production value for providing the service; a parent who works and hires a caregiver must pay the caregiver for the service. In the absence of a deduction for child care costs, payment for nonparental child care is made with income on which tax has been assessed. Thus a parent who pays for child care must earn more than the caregiver’s payment, before taxes, to pay the caregiver. Home-provided child care is â€Å"paid for† by forgoing untaxed wages, so the cost of home care is less than the cost of a hired caregiver. Making child care expenses tax-deductible would lead to greater social efficiency by eliminating this difference and

Inventory Management Essay Example | Topics and Well Written Essays - 2500 words - 1

Inventory Management - Essay Example This research paper examines the aspects of inventory management based on the fact that inventories are the major expense incurred during the operations of any organization. In this regard, it is prudent for managers to emulate effective systems of controlling their stock. In order to meet the demand of their customers, most businesses maintain an inventory system that ensures optimal inventory is maintained while at the same time tracking the movement of stock. Organizations that are product-oriented greatly value the concept of inventory control. For example, in order to enhance efficiency in their operations, manufacturers aim at having as little inventory as possible (Andrew and John 35).On the other hand distributors are focused at maintaining a certain amount of stock that meets the needs of their customers. This paper seeks to analyze various methods that Wooden Wonders Ltd can emulate in order to ensure that costs of ordering and holding inventories are minimal as well as ens uring that company inventories are sufficient and not surplus. Economic order quantity entails the level of inventory that minimizes the ordering cost as well as the inventory holding costs. The model that was developed by Ford Harris in 1913, seeks to identify whether or not the inventory held by a company is reasonable. One of the major aspects of EOQ is that it is used if there is no change in demand for the product throughout the year. The model consists of fixed cost that does not change regardless of the quantity of the units ordered.