Explain trends in wealth inequality in the United States from 1940–2020.

Describe how a country can measure its income inequality.

Evaluate the trend in the measure of income inequality for the United States from 1940–2020.

Evaluate the roles of globalization and advances in technology as causes of widening income inequality in the United States.

Compare wealth inequality to income inequality.

Explain trends in wealth inequality in the United States from 1940–2020.

Evaluate two causes of wealth inequality in the United States.

Evaluate the role of healthcare inequality as it relates to income and wealth inequality.

Estimate the wealth gap between those who have access to private insurance and those who do not.

Evaluate whether increasing access to affordable or free healthcare can reduce income or wealth inequality.

Make one recommendation on how to reduce income or wealth inequality if you were a federal policy maker.

Discuss the pros and cons of each hedging strategy.

Description

Based on the case study materials that you presented with your team, compose a case-write up in no-more than 1.5 pages per case:

1) A brief discussion of the overall subject of the case study

2) 2-3 specific aspects of the case that merit further analysis. For example, you could focus on a key decision point in the case and offer your suggestions on how to proceed

3) A closing discussion of what this case tells us about how economics helps in strategic decision-making and how it can help executives in similar sectors learn from the case.

General guidelines for case summaries

Do not summarize case facts. You should use the information to lend support to your analysis and recommendations.

Do not attempt to address all issues of the case. Identify and elaborate only the most important points.

Use the page wisely. Think very carefully about how best to express your ideas in a concise manner, which is a very critical skill for your future career and highly demanded by potential employers.

You are highly encouraged to use annexes (created by you, not cut and paste from the case or other sources) in your analysis. Most, if not all, good reports and proposals contain insightful and nicely presented annexes.

A manager has to sell his/her ideas to a host of audiences. It is important that your ideas, however marvellous they are, have to be presented clearly. It is expected that the case write-up that you turn in is a product of at least 1 – 2 revisions.

Fuel Hedging: Southwest Airlines – January 27, 2022

Team 2

Using economic theories, what is the purpose of hedging (hint: managing price

uncertainty)?

Team 7

How does hedging contribute to the business strategies of airlines? (hint: costs and

revenue management)

Team 10

Evaluate each of the five proposed hedging strategies in the case. What are the

benefits of each hedge based on two fuel price scenarios in one year? In other

words, assume in June 2002 that one of these scenarios occurs. Calculate your net

cost of jet fuel under each scenario incorporating the hedging strategies used. (Note:

you can analyze the hedges under as many price scenarios as you wish, but be

certain to include the following two scenarios.) For both scenarios, consider full

hedging and a 50% hedge strategy.

SCENARIO 1: 39.3 cents/gallon spot price for jet fuel; 38.8 cents/gallon spot price

for heating oil, or $14.10 per barrel spot price for crude oil, and

SCENARIO 2: 119.6 cents/gallon spot price for jet fuel; 118.6 cents/gallon spot

price for heating oil, and $40,00 per barrel spot price for crude oil.

Discuss the pros and cons of each hedging strategy.

Describe how a combination of the hedging strategies can be used

When the economy is at the recovery stage, both output gap and growth rate are positive? True/ False? Explain.

1. [ 4 points ] When the economy is at the recovery stage, both output gap and growth rate
are positive? True/ False? Explain.
2. [ 4 points ] Assume that input prices decrease and the government decides to cut spending.
In this scenario, what would happen to output (Y), the overall price (P), and unemployment
(U)?llustrate these changes on a graph.
3. [ 4 points ]  discuss the impact of monetary policy tightening with regards to both
unemployment and inflation with respect to both the short run and long run?
4. [ 4 points ] Assume that the unemployment rate (U) equals 8 %. Suppose that the natural
rate of unemployment (U*) equals 5 % and the coefficient σ is 0.6. Use Okun’s law to
answer the following:
A. Find the output gap ratio to the potential output?
B. If the potential output equals 160, calculate the actual output?
5. [ 4 points ] On a graph, show the impact of the permanent supply shock on unemployment
and inflation in the long run and in the short run?

Design a budget using the template you researched and chose from the Internet.

Design a budget using the template you researched and chose from the Internet. Allow yourself an income of $240 per month. Assume that your housing, medical care, and food needs are covered by your parents. Everything else is covered by you. This might include, but is not limited to: clothing, snacks, car insurance, automobile fuel, car payment, haircuts and personal care, toiletries, club memberships, entertainment, and any other purchases. Designate how you will allocate the $240 monthly.

Have you ever been involved in helping prepare a capital expenditure budget? Do you recall whether any of the four cash flow reporting methods were used?

Have you ever been involved in helping prepare a capital expenditure budget? Do you recall whether any of the four cash flow reporting methods were used? If you have not been involved in creating the capital budget, ask someone in your finance department to provide you with the directions they distribute each year when it is time to develop the capital budget for the coming year. Then, discuss what you learned about your organization’s capital budgeting process.

Describe another industry that you find fits the model of perfect competition.

Description

Watch the video clip:

Then research the Aalsmeer flower auctions in more detail.

What aspects of perfect competition do you see present in the Aalsmeer flower auctions? Since there is no truly perfectly competitive market in the world, but rather markets that approach this extreme, are there any elements of the Aalsmeer flower auction that you think do not fit the model of perfect competition?

Describe another industry that you find fits the model of perfect competition.

What was Ryan referring to when he said, “Over time with enough volume, we become profitable.” What short-run costs was he focused on, and what was he ignoring?

Description

Watch the video clip:

What was Ryan referring to when he said, “Over time with enough volume, we become profitable.” What short-run costs was he focused on, and what was he ignoring?

Given what you have learned so far about economies and diseconomies of scale, discuss the ramifications involved as a firm grows bigger. Use examples from beyond your readings to describe firms experiencing either economies or diseconomies of scale and what this implies for competition and for the customers of these firms.

Describe a firm that you believe is a monopolist. Describe the barriers to entry that exist and discuss if they are contestable or not.

Description

Watch the video clip from Forrest Gump:

Consider that Forrest’s good luck of “being in the right place at the right time” allowed him to operate as a monopoly. Typically, the fishing industry is a highly competitive industry where economic profits are rarely made in the long run. However, in a twist of fate, Forrest’s boat is the lone survivor after a hurricane washes ashore and destroys all the other shrimp boats.

Consider the barriers to entry facing potential competitors in Forrest’s monopoly market. The more contestable a market, the closer it will be to a perfectly competitive market, whereas the less contestable a market, the closer it will be to a monopoly.

Describe a firm that you believe is a monopolist. Describe the barriers to entry that exist and discuss if they are contestable or not.