How much impact does government regulation have on the automotive sector?

June 30, 2024 No Comments

A: Government regulation in the automotive industry directly affects the way cars look, how their components are designed, the safety features that are included and the overall performance of any given vehicle. As a result, these regulations also have a significant effect on the automotive

Is gross national income (GNI) or gross domestic product (GDP) a better measure of the economic condition of a country with substantial foreign investment?

June 30, 2024 No Comments

A: While gross domestic product, or GDP is among the most popular of economic indicators, gross national income, or GNI, is quite possibly a better metric for the overall economic condition of a country whose economy includes substantial foreign investments. This is because the GNI

How much money does Michigan make from unclaimed property each year?

June 30, 2024 No Comments

A: According to the 2013-2014 Annual Report of the State Treasurer, the state of Michigan earned only $82,875 in abandoned and unclaimed property, which falls slightly below the annual average from 2009-2014 of $99,935. While Michigan state’s record of exactly how much revenue has been

Is industrialization good for the economy?

June 30, 2024 No Comments

A: Industrialization is the process by which an economy moves from primarily agrarian production to mass produced, technologically advanced goods and services. This phase is characterized by exponential leaps in productivity, shifts from rural to urban labor and increased standards of living. By typical measurements,

How does the United States government measure economic growth?

June 30, 2024 No Comments

A: The most widespread measurement of national economic growth is gross domestic product, or GDP. The U.S. government collects and compiles economic data through the Bureau of Labor Statistics, or BLS. Once the data is organized, it is used by the Bureau of Economic Analysis,

How does total capital investment influence economic growth?

June 30, 2024 No Comments

A: An economy grows in only a few specific ways. People might find new or better resources, as with the discovery of oil wells in the 1850s. More people (or more productive people) might enter the workforce. Technology might be improved, as with the advent

How important are seasonal trends in the automotive sector?

June 30, 2024 No Comments

A: The automotive industry has some definite seasonal trends, with peak demand occurring in the spring and fall, and lowest sales in December, January and February. The auto industry is an important element of the entire U.S. economy. The automobile sales level is often seen

How is a market failure corrected?

June 30, 2024 No Comments

Imperfect market outcomes are corrected through a reallocation of resources or change in incentive structure. Economists have different opinions about the nature of market failures and what (if any) measures need to be taken to prevent or correct them. What is a Market Failure? It’s

How is an economy formed and why does it grow?

June 30, 2024 No Comments

A: Broadly speaking, an economy is an inter-related system of human labor, exchange and consumption. An economy forms naturally from aggregated human action – a spontaneous order, much like language. Individuals trade with each other to improve their standards of living. Improved standards of living

How is covariance used in portfolio theory?

June 30, 2024 No Comments

A: Covariance is used in portfolio theory to determine what assets to include in the portfolio. Covariance is a statistical measure of the directional relationship between two asset prices. Portfolio theory uses this statistical measurement to reduce the overall risk for a portfolio. A positive

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