Economics is the study of normal, or in more appropriate words, rational human behavior. It discusses human undertakings and attempts to fulfill and satisfy both needs and wants. People have to make certain choices regarding their money as they face the problem of possessing inadequate means for fulfilling their desires. It means that the equivalent collection of limited resources i.e. The discretionary income owned by a consumer is used for all types of consumer disbursements (Du & Kamakura, 2008).
Expenses of consumers in a specific industry can be considered accordingly by comparing their expenditures in other industries. It is a general conception among marketers that their participation is individually recognized in comparison with other related industries. However, it is extremely important for them to understand the consumer behavior while the consumers make trade-offs between meeting consumption needs of various sorts with a certain amount in hand. Environmental changes like escalating gas prices or tax rebate also influence the expenditure as consumption budget is reallocated by the consumer as a response to these changes. Every individual family unit makes trade-offs when faced with budget limitations. Depending on life stages and income levels, families have continued changing preferences for different industries (Du & Kamakura, 2008).
A study has been conducted by Du & Kamakura (2008) that tells us about the decisions of individual households regarding budget allocation for a wide-ranging set of expenditures. Rational consumers take a number of steps in order to optimize their spending of discretionary income....
Econometric Modeling Financial risk is currently at the center of all economic activity due to the incredibly unstable financial environment of the world economy. As a consequence the search for ways to reduce risk has taken a front seat in the important issues of our day. Several instruments exist in order to increase risk reduction possibilities, these include forward and futures contracts as well as various derivatives. That the most optimal
The deal was immediately criticized as anti-competitive by William Kennard, the chairman of the Federal Communications Commission, and by the Communications Workers of America, which represents some workers at both of the merged companies. But neither government regulators nor union bureaucrats will have the slightest impact on the latest merger. They have neither the power nor the desire to oppose the plans of the giant telecommunications monopolies. More substantial opposition
Economic Trends In terms of output and growth, Canada's real GDP was 2.96% higher than it was a year ago, but the growth trend is slowing down from a growth rate high of 3.81% in Q3 2010. Japan's economy has contracted in Q2 2011 by 0.76%. It's rate has been volatile, growing rapidly over the past year only to contract again. The UK's growth rate is 1.63%, and that country has
Economics economy has recently emerged from recession. During 2009, real GDP declined 2.6%, the largest drop during the study period beginning in 2009. This came following flatlined GDP in 2008. The only similar instance on record was in the early 1980s when GDP declined 0.3% in 1980, rebounded slightly and then declined again in 1982 by 1.9% (BEA, 2011). The most recent recession was, because there was no rebound in the
This is a pattern that is relatively consistent over a long time period (Clayton & Spletzer, 2006). The only difference in 2005 was that unemployment claims did not rise in the fourth quarter with the drop in jobs, as they had done in the past. It is difficult to draw definitive conclusions as to where these employees went in the fourth quarter of 2005. To do so would be filled
Economics The condition of global financial stability implies that the world's financial institutions are healthy, that macroeconomic risks are within normal bounds and that the risk environment including appetite for risk is at normal levels (IMF, 2014). There are differences between the ways that the macroeconomic environment affects the developed and developing worlds, and this paper is going to focus on the latter. The economic structure and vulnerability levels of the
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now