Andrew asked:


Adame I

Research Paper Outline

Thesis Statement:

General Motors is an automobile and truck manufacturing company that was successful for 101 years. Why did it collapse badly in the first decade of the 21st Century? To help us better understand why GM went downhill we first need to learn about the reasons why General Motors failed and its problems. There were many problems in why GM failed, the first problem was financial policies and planning, second was Uncompetitive vehicles, and third was Ignoring competition and failing to innovate. Due to some problems and poor decisions, it is easy to see why General Motors failed. Maybe they never thought this would happen and never took action but foreign cars became important to Americans because they were innovative and dependable and GM vehicles were not.

I. Introduction:

General Motors was founded in September of 1909. January 28th, 2010 almost 101 years later GM ceased to exist. GM has produced some of the most beloved vehicles in the nation. It has become an integral part of the lives of thousands of families around the globe. And now Bankrupt, Straddled with debt, fighting with unions. How did General Motors go from a company that embodied American success to one of the largest corporate failures in American history? The research I did well tell us why GM crashed. GM had many problems which made the company fail. The first problem was bad financial policies. The second problem was that GM had uncompetitive vehicles. And the Third problem was that GM has been ignoring competition
Adame II
and failing to innovate. Also Thanks to $19.4 billion in loans and $30.1 billion more in debtor-in-possession financing, a huge amount of effort by the U.S. government and GM’s management, unions, dealers, suppliers and bondholders, the effects of that failure will be terrible, but not catastrophic. The U.S. will own 60 percent of the new GM, which will include Chevy, Buick, GMC and Cadillac. GM’s failure was a combination of mismanagement and poor car design in the 70s and 80s. In my opinion GM went from an American icon to producing crappy and unreliable cars in the late 70s and 80s.

I. Supporting Issue #1:

The first problem was bad financial policies. You might be surprised to learn that GM has been bankrupt since 2006 and has avoided a filing for years thanks to the graces of the banks and bondholders. But for years it has used cars to sell consumers a monthly package of highly profitable car loans.

II. Supporting Issue #2:

The second problem was uncompetitive vehicles. Compared to its toughest competitors like Toyota GM’s cars were poorly designed and built, took too long to manufacture at costs that were too high, and as a result, fewer people bought them, leaving GM with excess production capacity.

III. Supporting Issue #3:

The third problem was ignoring competition and failing to innovate. GM has been ignoring competition for about 50 years. At its peak, in 1954, GM controlled 54 percent of the North American vehicle market. Last year, that figure had tumbled to 19 percent. Toyota and its
Adame III
peers took over that market share. Since GM was focused on profiting from finance, it did not really care that much about building better vehicles. GM’s management failed to adapt GM to changes in customer needs, upstart competitors, and new technologies.

V. Conclusion:

In conclusion whether GM fails or not will depend entirely on GM. They have essentially already failed in the sense that they are presently a private corporation operating on the taxpayers’ dole. They will need to totally regroup, build more desirable and better quality vehicles that the public will buy, sell off their foolish, unprofitable purchases of the past, start paying attention to competition, Innovate better, stop putting all of their research into pet projects such as the EV1 fiasco and Chevy Volt and perhaps (dare I say) take a few lessons from Ford Motor Company.

Frederick

J asked:


28. Changes in the following variable DO NOT shift the demand curve for a good:
a. The price of the good.
b. Prices of other related goods.
c. The income of consumers.
d. The tastes of the consumers.
e. The expected future price of the good.

29. Modern economic growth is correlated
a. with the gradual reduction of the public sector as a share of GDP.
b. with an increase in the size of the public sector.
c. with a reduction in regulation and other government interference in business.
d. a and c.
e. All of the above

30. To counter external shocks, it would be advisable for a developing country
a. to rely on short-term capital movements in financing its investments.
b. to eliminate all barriers to imports.
c. to improve the credibility of its state apparatus.
d. to deregulate its banking system and rely on dollar-denominated financing.
e. All of the above.

31. Robinson takes 8 hours to write a computer program and 6 hours to produce a pair of jeans. Xena takes 4 hours to complete either task. Which of the following statements is INCORRECT?
a. Xena has the AA (Absolute Advtantage) producing both jeans and writing computer programs.
b. If they were to specialize and trade, Robinson would produce jeans.
c. Robinson has the AA producing both jeans and writing computer programs
d. Xena has the Comparative Advantage in writing computer programs.
e. Xena has the AA in producing jeans.

32. A point outside a production possibilities frontier
a. indicates that some resources are unemployed.
b. is unattainable for production purposes.
c. is worse than points on the production possibilities frontier.
d. implies that too much capital and not enough labor are used.
e. None of the above.

33. Suppose that to produce one pound of rice in Japan requires 3 hours of labor, whereas in the U.S. it requires 1 hour of labor. As a result, we can conclude that
a. Japan has a comparative advantage (“CA”) in producing rice.
b. The U.S. has the absolute advantage in producing rice.
c. Japan has the absolute advantage in producing rice.
d. The U.S. has a CA in producing rice.
e. None of the above.

Bernice

Manlee08 asked:


I just was unsure about these questions! Please help! * is what I put! THANKS!!! )

1. A closed economy is one which ______.

A) only trades with its neighbors
B) trades goods but not services or assets with other countries
C) does not trade goods, services, or assets with other countries
*D) has a centrally planned economy

2. The Human Development Index is

A) a perfect measure of a countries standard of living
B) the only way to measure living standards between different countries
*C) an incomplete measure of a countries standard of living
D) used by the U.N. to compare nations by measures other than real GDP per capita

3. Discouraged workers are those individuals ________.

*A) who are getting paid too little
B) who do not like their jobs
C) who are working part time but are looking for a full-time job
D) who have given up looking for a job

4. The major difference between the consumer price index and the producer price index is that _______.

A) the PPI is based on retail prices and the CPI is based on wholesale prices
B) the PPI measures the cost of living of self-employed workers and the CPI measures the cost of living of salaried workers
C) the PPI generally registers a higher rate of inflation than the CPI
*D) the PPI is based on the cost of a basket typically purchased by producers, while the CPI is based on the cost of a basket typically purchased by consumers

5. According to Thomas Malthus’s work, which of the following is true concerning his pessimistic predictions of future productivity?

A) As population grew so would output per worker
B) The amount of capital per worker would fall
*C) Technology could be counted on to increase output per worker
D) The amount of land per worker would eventually decline

6. Sources of funds for investment spending are _______.

A) savings by households, government, and foreigners
*B) taxes and transfer payments
C) always equal to U.S. spending on imports
D) directed to their most productive uses by the U.S. government

7. Governments can engage in saving when _________.

A) taxes are less than expenditures
*B) taxes are greater than expenditures
C) the government borrows to finance its expenditures
D) the president insists that Congress balance the budget

8. Capital inflows represent _____.

*A) the net inflow of funds into a country
B) the net outflow of funds from a country
C) the amount that domestic savings exceeds foreign savings
D) the excess of domestic physical capital exported minus the amount of physical capital imported

9. The price determined in the market for loanable funds is _____.

A) the margin call
B) the profit rate
C) the transaction fee
*D) the interest rate

10. A financial asset is ______.

A) a tangible asset like a car
B) a claim that entitles the owner to future income from the seller
C) the value of accumulated savings
*D) all the above

Gordon

Edward88 asked:


Why is there a depression in the economy? What causes it? I know the very basics. That businesses are doing poorly, thus, there is less money for consumers to spend so that the cycle continues. The money must be going somewhere? Also, how come banks and finance institutions go under?
Thanks a lot for your help! I’d prefer a more theoretical answer rather than just the current reasons for the depression.

Wesley

sonyboy812 asked:


I read in an economic text book that a current account deficit is generally due to mainly transactions made by private individuals and companies trading. It goes on to say “a current account deficit is NOT a government deficit in any sense”.

Thus, if UK consumers buy more from China then they export to China, and assuming the UK have paid for the goods without borrowing money, Why is it a deficit then? UK could be using their savings. All it tells us is we spent more than they did. At the end of the day, we are shifting money (wealth) to China.

Tammy

TylerFromNE asked:


When you fund tax cuts by going into debt*, you’re actually cannibalizing your supply of capital to finance current consumption, aren’t you?

The only “supply” of anything “supply-side” economics ever brought us was a glut of throw-away consumer crap made by Chinese slave labor.

*That’s not to say I’m opposed to deficit financing of large-scale public-sector investment in certain circumstances like… oh… now.
Beef missile,

I probably should have phrased that better… You are of course right. Essentially what I’m asking is since Keynesian theory supports investment while the more aptly titled “psuedo-supply-side economics” encourages consumption, it’s actually just the opposite in the long run – Keynesian policy increases supply, while neoliberal policies consume it – no?

Ben

John 360 asked:


When will America’s (a) massive budget deficits financed by the sale of US treasuries to foreigners, (b) sky-high trade deficits and current account deficits, (c) unrestrained money-printing, (d) sinking dollar, (e) ceaseless expenditures on foreign wars, (f) low-levels of personal savings combined with massive consumer debt and (g) profligate spending ways finally bring down the giant ponzi scheme that is the US economy?

When?

Gabriel

2shar asked:


Demand curve for cigarettes is given by Qd = 2000 – 200P
Supply curve for cigarettes is given by Qs = 200P , where P is the price per pack.
The government now imposes a tax of $2 per pack. Find the quantity after the tax, the price paid by consumers and price received by producers.
Please explain how you derive new demand curve after the tax is imposed.

Rhonda