Abstract This paper reviews the concept and application of the consumerpriceindex. It reviews energy price changes for 1993-2002 in relation to the CPI. It looks at how the CPI is used to measure inflation in the United States economy.
Abstract This paper evaluates six economic measures (NASDAQ 100, Standard and Poor's 500, Dow Jones Industrial Index, ConsumerPriceIndex, GDP, unemployment rate). Graphs of historic economic performance are included with the paper.
From the Paper "The NASDAQ is an index of companies traded on the NASDAQ exchange that are considered representative of the exchange as a whole, including domestic and international companies. The following chart illustrates recent performance of the NASDAQ. The Standard Poor (SP) is a composite index compiled by a private company that tracks stocks from both the New York Stock Exchange as well as the NASDAQ. The historical performance of the SP is illustrated below..."
Abstract This report looks at how economic indicators like the Gross Domestic Product, inflation as measured by the ConsumerPriceIndex, unemployment, capacity utilization, personal income and the actions of the Federal Reserve can be used to observe the true nature of the airline industry's economic woes.
From the Paper "There is a definite economic crisis coming out of the airline industry. Carriers like American Airlines, Delta, United and Continental continue to operate in the red as issues such as the price of fuel, terrorism and weak world economies continue to hamper the industry's attempts to move into the black. Each of these large United States based carriers have either filed or has considered filing for bankruptcy protection at one time or another in an attempt to rediscover solvency. Of course, many believe that the events surrounding September 11, 2001, where terrorists hijacked several American planes and used them as missiles, is the only reason for the airline industry's current financial predicament. However, throughout the past thirty years, the true dilemma the airline industry has faced can found in economic indicators that show the downturns should be attributed to other economic predictors such as inflation, the United States and world economies, globalization and the very obvious factor of stiff competition. Reduced fairs will never work if the industry faces escalating operating costs."
Tags: gdp, gross, domestic, product, consumer, price, index
A comprehensive analysis of changes in sales revenues and profits in the U.S. pharmaceutical industry from 1980-2000. It includes several original graphs based on relevant statistics.
Abstract This paper analyzes how changes in sales revenues and profits in the pharmaceutical industry are related to the business cycle with regards to the gross domestic product, consumerpriceindex, and unemployment rate from 1980-2000. The following guidelines were followed: 1) analysis of the pharmaceutical industry and finding revenues and profits from the period of 1980-2000; 2) how revenues and profits in the industry varied over the period 1980-2000; 3) how the business cycle behaved over the period of 1980-2000; 4) variations in revenues and profits with swings in the business cycle and the juxtaposition of industry revenues and profits against the business cycle;and 5) strategies recommended for firms in the industry dealing with the business cycle. A summary is provided in the conclusion. Several original graphs are also included.
From the Paper "One expert suggests the modern pharmaceutical industry began in the 19th century with the discovery of highly active medicinal compounds that could most efficiently be manufactured on a large scale. As these compounds replaced herbal medicines of earlier times, the occurrence and severity of such diseases as pernicious anemia, rheumatic fever, typhoid fever, lobar pneumonia, poliomyelitis, syphilis, and tuberculosis were greatly reduced. Pharmaceutical industry research has greatly aided medical progress; of the 66 most valuable drugs introduced since aspirin in 1899, 57 were discovered and then produced in industrial laboratories (Atherton, 2002). Today, the pharmaceutical industry is comprised of the processes, operations, and organizations engaged in development and manufacture of drugs and medications (Atherton, 2002). In the U.S., the pharmaceutical industry is followed by the Standard & Poor 500 (S&P 500)."
Abstract This paper is based on the airline industry and discusses a brief history of this industry, an industry overview, and a SWOTT (Strengths, Weaknesses, Opportunities, Threats, and Trends) analysis of the industry. It also addresses the impact of real Gross Domestic Product (GDP), the unemployment rate, and the inflation rate as measured by the consumerpriceindex (CPI). The paper includes three economic indicators.
History of the Industry
Industry Overview
SWOTT
Gross Domestic Product
Unemployment Rate
Inflation Rate
Economic Indicators
In-depth Analysis
Final Recommendations
From the Paper "Business travel still plays a significant role in the airline industry. Although many advents in business communications technology have evolved, something remains to be said about the quality and quantity of business conducted in face-to-face meetings. Competition for business travelers is intense with legacy carriers and low-cost carriers vying for revenue. Today, the financial benefit is in the business community's favor although it is expected that in late 2005 excess capacity consumption will allow the airlines to begin charging higher fares (National Business Travel Association)."
Abstract This paper discusses the home building industry, including a brief history of this industry, an industry overview, and a SWOTT (Strengths, Weaknesses, Opportunities, Threats, and Trends) analysis of the industry. It also addresses the impact of real Gross Domestic Product (GDP), the unemployment rate, and the inflation rate as measured by the consumerpriceindex (CPI). The paper details three economic indicators.
Home Building History
Home Building Overview
Strengths and Weaknesses
Unemployment Rate
Gross Domestic Product
Recommendations
Housing Starts
Personal Income
Recommendations
Interest Rates
Inflation
Interest Rates versus Inflation
Recommendations
Conclusion
From the Paper "The home building industry has been around for many years. The design, shape, and style of homes have changed over time. The industry is quite different than it was many years ago. When people first began to build they did not layout and draw plans and specs for their home. The first homes were built with one or two rooms in the entire house. Today, they average home has over 6 rooms, When home building first started there was no set rules and regulations that builders had to follow, now we have organizations such as the Occupational Safety and Health Administration who helps set construction regulations for the home building industry. We also have NAHB (National Association Home Builders), which was started in 1942. The NAHB works with the state and local agencies to help establish government and legislature for home builders as well as establish affordable housing for everyone."
Abstract To understand the implication of inflation and deflation, the author outlines the functions of money and of the price system. He defines terms such as Price Stability and ConsumerPriceIndex. The paper discusses the history of business cycles and the associated problems. He concludes with a discussion methods to control the economy.
Graphs
ISLM
Target Inflation
Pricing
From the Paper "Price stability exists when prices overall are stable, which is the same as the permanent value of money. This does not mean that prices are fixed, but rather that taken on the whole they are stable when measured relatively. Indeed, in an environment of price stability, one would expect some prices to be rising but other to be falling. The main function of the price system consists in guiding the productive structure and the market system requires the enforcement of private property because the price becomes the expressions of those interactions of individual valuations through the use and disposal of what is owned. These interactions of the individuals participating are the market modifies the relative price structure according to the changes that take place in their individual valuations. By contrast when the general prices level of goods and services have persistent and relatively large increase we have inflation and when prices move predominantly down we have deflation."
Tags: money, price, stability, consumer, gold, dollar
Abstract The paper discusses the causes for the increase in the US GDP and why personal income grew. The paper looks at the federal discount rate and the primary credit rate and explains that the increase in primary credit rates indicated an increase in such banks and such credits. The paper relates that the ConsumerPriceIndex or CPI represents the average change in prices over time of goods and services purchased by households and the paper notes an increase in the CPI. The paper examines how unemployment was higher for evacuees not living in their former homes because of Hurricane Katrina and discusses how housing permits decreased in every region. The paper reveals that consumers' opinions did not show likelihood of losing trust in the economy although total retail sales showed a decline and economists and analysts viewed the economy as slowing down.
From the Paper "Real gross domestic product or GDP represents the total output of goods and services by labor in a particular country, in this case, the United States (Bureau of Economic Analysis 2006). The US GDP increased at an annual rate of 2.9% from June 2--5 to June 2006 or 5.6% in March 2006 alone. This increase reflected positive contributions from personal consumption expenditures for services, private inventory investment, non-residential structures, exports, and state and local government spending. These were partly offset by negative contributions from residential fixed investment and federal government spending. Imports too increased and would be debited from the calculation of GDP."
Tags:consumer, investment, credit, CPI, employment, federal
Abstract This paper identifies the necessary economic model that explains and analyzes the U.S. automotive industry. The paper focuses on the long-run and short-run profit maximization point, elasticity measures and how changes in price affect total revenue. The paper then explains the demand equation within the US automotive industry. The paper points out that it is clear that the US automotive industry is expansive and economic theory can be applied to the market to understand, demand, supply, profit maximization, and elasticity of demand. In conclusion, the paper shows that after a comprehensive analysis of this industry, a very comprehensive understanding of the factors that affect demand within the automotive industry via a multivariate framework is seen.
Outline:
Market Structure for the US Automotive Industry
Demand Function: US Automotive Industry
Macroeconomic Variables And the US Automotive Industry
Understanding Price Elasticity in the US Automotive Industry
Profit Maximizing Output and Price within the US Automotive Industry
From the Paper "The law of demand states that as price increases, the quantity demanded increases, and the converse holds true. Therefore as the price of Toyotas increase, there is the expectation that the quantity demanded for Toyotas will decrease, while as the price of Toyotas decrease, then the quantity demanded increases (same for the GM model). If this model was estimated, based on the law of demand, b1 should be negative."
A study of how the arbitrage pricing theory is typically used to model economic risk and market behaviors in general, with a view to how these applied to China and Hong Kong in particular.
Abstract This paper attempts to determine how effective the arbitrary pricing theory can be when it is applied to the current situation in Hong Kong to identify the market return and any possible macroeconomic factors such as interest rates, stock market indexes, GDP, inflation rate. The paper accomplishes this through an analysis of empirical studies and a review of current and chronological macroeconomic indicators for Hong Kong.
Outline:
Chapter 1: Introduction
Statement of the Problem
Purpose of Study
Importance of Study
Scope of Study
Rationale of Study
Overview of Study
Chapter 2: Review of Related Literature
Chapter 3: Methodology
Description of the Study Approach
Data-Gathering Method and Database of Study
Chapter 4: Data Analysis
Chapter 5: Summary, Conclusions, Recommendations and Reflections
From the Paper "Modern economics - and society - requires well-established laws to function efficiently. In this regard, the first law of economics is clearly the law of supply and demand, but the "law of one price" (hereafter simply "the Law") also plays an important role as well. While economic theory suggests that these processes will be maintained precisely in competitive markets with no transactions costs and no barriers to trade, in real world setting, details concerning market institutions are also important in determining whether disruptions in the law of supply and demand can occur (Lamont & Thaler, 2003). Many economists have traditionally assumed that the Law could be applied almost exactly in financial markets because of the workings of arbitrage. In this regard, these authors define arbitrage as "the simultaneous buying and selling of the same security for two different prices, is perhaps the most crucial concept of modern finance" (Lamont & Thaler, 2003, p. 191). "
Abstract In this article, the writer presents a detailed examination of the topic of suspected price gouging by oil companies. Using concrete recent examples of well known companies, including Exxon Mobile, the writer explores allegations of price gouging and argues that it is unfair for oil companies to take advantage of consumers when consumers have supported them for years. According to the writer, social responsibility should supercede corporate responsibility. The writer concludes that the time has come for the oil companies to recognize their social responsibilities and protect the consumers who have kept them in business since their inception. Further, the writer claims that the oil companies need to lower their prices so that the consumer can again trust the prices are fair to everyone involved. The writer includes in this paper approximately 30 pages of source copies.
Outline:
Introduction
The Problem
Current Gas Prices and Price History
Conclusion
References
Source Copies
From the Paper "According to studies conducted with regards to gasoline refiners are getting more of a profit out of each gallon now than they were at this time a year ago. Crude producers are getting an additional 47 cents a gallon. After Katrina and the price of oil company products began to increase rapidly, Congress held a special session in which many experts and oil company representatives testified regarding the accusation of price gouging. The companies maintained their belief that it was not their work that was price gouging but it was the retailers who sold the gasoline that were participating in price gouging. Retail representatives responded that it was nonsense, pointing out that their customers would not remain loyal if they suddenly began upping the price of gasoline compared to the retailer across the street."
Abstract In order to determine the value of index investments as an investment strategy, this paper weighs several important considerations. It defines index funds and lists the types of index funds that are available to the investor. It then gives a thorough list and analysis of the major advantages and disadvantages of index investing. The paper then lists the alternatives to index investing and investigates the advantages and disadvantages of these alternatives. The Efficient Market Hypothesis is explained and how this might impact the evaluation of index investing and the alternatives to index investing. It concludes this case study by giving a personal analysis of whether the writer would include index investing in his personal portfolio.
From the Paper "Simply put, an index fund is a mutual fund that attempts to match, with as much accuracy that is possible, the performance in a stock market index. Mutual funds have created S&P500 index funds in an attempt to copy the Standard and Poor (S&P)500 index, by buying all 500 stocks in the same percentage that they are present in the index.
"Interestingly, S&P 500 tracks the performance of large company stocks in the United States, like the Dow Jones Industrial Average. The S&P 500 index tracks the stock prices of 500 big companies, which account for close to 80 percent of the total market value all of the stocks that are traded in the United States. Index funds mirror the returns of a specific index, or a group of securities, that are considered measuring sticks of the behavior of the market as a whole. If the market increases 5% in one year, the index will also increase by close to 5% in the same specific time frame."
Abstract This paper discusses how the study of consumer behavior helps organizations improve marketing strategies by understanding how certain issues such as buyer psychology and behavior affect purchasing decisions. By understanding the consumer, organizations will be able to make more informed decisions as to which strategy to employ and improve their marketing campaigns and marketing strategies to more effectively reach the consumer. This paper defines consumer behavior and provides an example of a consumer purchase demonstrating how each of the 4 Ps (product, price, promotion, and place) of marketing impacted the purchase.
Outline:
Abstract
Definition
The 4 P's of Marketing
Conclusion
From the Paper "One definition of consumer behavior is "The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and society" (Hawkins, 2004). Another definition according to the American Marketing Association is that consumer behavior is "the dynamic interaction of affect and cognition, behavior, and environmental events by which human beings conduct the exchange aspects of their lives." More generally, consumer behavior is the psychology behind marketing and the behavior of consumers in the marketing environment (American Marketing Association, 2006)."
Abstract This paper examines the loss leader pricing scheme employed by retail businesses like Wal-Mart. It explains how this pricing scheme should be included in Wal-Mart's pricing strategies in order to increase the volume of goods sold and therefore the amount of profits realized by the company. The writer discusses how a retailer such as Wal-Mart relies mostly on economy and occasionally loss leader pricing to maintain profitability. The writer suggests that a successful retailer such as Wal-Mart must make use of a variety of pricing schemes in order to be profitable. The writer notes that Wal-Mart is a success because it sells products at low prices that people want to buy, satisfying customer's wants and needs. The writer concludes that Wal-Mart should continue using a combination of pricing strategies, to include loss leader pricing, to entice consumers to shop in their stores.
From the Paper "I am asked if Wal-Mart should use loss leader pricing? One must consider the overall effects of such a practice as well as the company objectives in instituting such a policy. Additionally, a variety of pricing schemes and strategies must be understood as well as the intentions of such schemes. First, loss leader pricing is an aggressive pricing strategy where a retailer sells goods for less than they bought them for, attracting more consumers to their stores. The hope is that these consumers will buy other goods and more than offset the cost of the good being sold for a loss. This is a type of promotional pricing strategy which is a very effective method of pricing."
Abstract This paper examines articles which addresses the issue of elasticity in the funeral industry. It points out that prices in the industry are becoming increasingly subject to competition and the living consumer's desires regarding elaborate or simple funerals, and thus demand can shift more wildly and widely than ever before, and is more subject to outside as well as inside industry forces.
From the Paper "One external factor of particular note for Richard Willing is that the traditional funeral industry is facing increased competition and new supplies from discount venues, and alternative venues. For example discount casket stores have increased the supplies of caskets overall, and of discount caskets in particular. Many of these casket stores are located on the Internet. This technological impact upon the ease of funeral consumer perusal allows for more responsive consumer demand to shifts in pricing, as consumers can be more informed upon pricing differentials, even during a time of grief, by simply surfing the web, rather than driving all over their area or calling up different funeral homes. On average, families have paid upwards of $2,176 for a casket. Now discounters estimate that they can halve the cost."
