Applied Economics Concepts with Complete Solutions

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Applied Economics It is the study of economics in relation to real world situations, as opposed to the theory of economics. Application of economic principles and theories, and trying to predict what ... the outcomes might be. Foreign Exchange This refers to the dollar and dollar reserves that the company has. We need this, particularly dollars for international trading and buying raw materials from other countries. First This is the __ Application of applied economic. It states that applying economics to the status of the economy of a company, a household or a country helps to sweep aside all attempts to dress up the situation so that it will appear to be worse or better that it actually is. Changes in Supply It pertains to the shift of supply curve brought by changes in the determinants of supply. Second It is the __ application of applied economics. It states that applied economics acts as a mechanism to determine what steps can reasonably be taken to improve the current economic situation. Changes in Quantity Demand This indicate the movement from one point to another point. This changes is brought about by changes in prices. Third It is the __ application of applied economics. It states that applied economics can teach valuable lessons on how to avoid the recurrence of a negative situation or at last minimize the impact. Changes in Quantity Supplied It show the movements from one point to another point in a constant supply curve. This changes is brought about by a change in price. Econometrics It is the application of statistical and mathematical theories to economics for the purpose of testing hypotheses and forecasting future trends. It takes economic models and tests them through statistical trials. [Show More]

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