Economic efficiency

Economics is the study of how people make choices using the resources they have available. Society as a whole has unlimited wants but has limited resources to obtain their wants. There are four questions that economists use to help break down problems. 1. Scarcity: What are the wants and constraints of those involved? 2. Opportunity Cost: What are the trade-offs? 3. Incentives: How will others respond? 4. Efficiency: Why isn’t everyone already doing it? Scarcity is defined as a person’s wants…

Triangle Solutions Expansion The always evolving economic world triggered by the fast technological advancement has compelled Triangle Solutions to concentrate on expansion strategies and subsequently adapt to the market changes. Triangle Solutions is a crucial player in the cosmetic industry in Australia having been ranked the highest in revenue generation in the country. With the growth of international business and competitive business on a global platform, it is advisable for the company to…

dealers, pension fund managers, finance and leasing companies, credit unions, etc. Moreover, the Canadian banking system has got the soundest in world and that was by The World Economic Forum. However, there are some trends that are impacting the overall Canadian industry, and the strongest trends are Political, Economic, Social, Technological, Environmental and Competitive. In addition, all these trends have opportunities and threats. Political Opportunity and Threat…

has the opportunity to grow its business in the U.S., which is the biggest market after Korea. The rapid growth of developing economies present the opportunity for the firm to improve revenues based on these markets. According to the analysis of economic factor they provide opportunity to the business Socio-cultural factors affecting Automobile industry This dimension of PESTLE model shows the impact of social and cultural trends affecting business. In Hyundai’s case, the main socio-cultural…

import substitution policies that was adopted prior to the economic reforms has been translated into tight controls of foreign and domestic investment, government involvement in production, and policy that is in favor of capital and skill-intensive industries which actually goes against the country’s comparative advantage in labor-intensive production. Thirdly, the lack of policy flexibility has discouraged FDI in India, especially the efficiency-seeking firms. Fourthly, high workers’ protection…

While at first glance, Becker and Stigler’s theory may seem to remove human nature from the decision making process, it is much more complex than this assumption. Similarly to traditional economic theory, their model is based off of Homo Economicus, or the economic man. Therefore, this theory operates under the premise that all humans are rational individuals with the main goal of maximizing utility. Furthermore, Becker and Stigler add on to classical thought by claiming individuals all share a…

detailed methodology to be applied to behavioral choice data for eliciting normative (welfare) preferences. In what follows we explain their methodology in detail. Step 1, involves the building of a positive behavioral model incorporating all of the economic and psychological motives that shape behavior, including the mechanisms that generate mistakes. In step 2, a set of normative axioms is constructed to produce a mapping rule from the behavioral model to a normative model; step 3 uses…

market participants. Bode et al (2001) identified three forms of stock market efficiency hypothesis namely the weak, semi-strong and strong. These forms are differentiated by the amount of information incorporated in the share price formation processes determined by the “available information” and how information is disseminated throughout each respective market. In concurrence, Fama (1970) highlighted that efficiency can be more precisely defined with reference stock price adjustments to the…

In The China Challenge, Thomas J. Christensen adopts the context of an international system which demands that China bear more environmental responsibility than its willing to take, translating directly into a struggle to coordinate effective policy towards mitigating global climate change between the United States and China, the world’s two largest carbon emitters. However, the international status quo has changed dramatically since the publication of Christensen’s argument: with the US…

maximize both individual and public interests. The economic orders that benefit the whole society emerge as the unconscious result of actions and voluntary transactions of each individual (Friedman & Friedman 2011). Competition within market is positive, through which the pursuit of self-interests by individual, the basic unit of society, can generate the socially beneficial outcome. The reason is that producers would strive to increase efficiency and decrease the cost of production, in their…