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Edward Pearson

BBC News - Samsung and LG fined by regulator for price fixing - 2 views

  • secret meetings in 2008 and 2009
  • The companies face a penalty of 44.6bn won ($39m; £25.2m), said the Fair Trade Commission (FTC).
    • Edward Pearson
       
      -highly illegal -inefficient, lack of competition 
  • "Their price rigging caused damage to many consumers by leading the prices of washing machines, flat-panel TVs and laptop computers to rise
    • Edward Pearson
       
      effectively monopoly - easier to controll prices -non-kinked demand curve
  • ...1 more annotation...
  • South Korea's antitrust regulator has fined Samsung Electronics and LG Electronics for conspiring to fix the prices of some appliances.
    • Edward Pearson
       
      explicit collusion - effectively becomes a monopoly
  •  
    This could be my IA article - colluding oligopoly and monopoly
Nich Fabrici

India Seeks Increase in Penalty on Coal India - WSJ.com - 2 views

    • Nich Fabrici
       
      Increase in Penalty Due to Decrease in supply.
    • Nich Fabrici
       
      Title is nearly insignificant. Focusing on the decrease in supply to the consumer, and not the increase in penalty.
  • Coal India,
  • 80% of India's coal needs
  • ...15 more annotations...
  • stagnation in coal output growth
    • Nich Fabrici
       
      Growth of Firm is Decreasing, decrease in supply. Also meets 80 percent of coal needs, demand is high
  • environment clearances
  • supply shortfall
  • educed electricity generation
  • ndia's 200-gigawatt electricity generation capacity is coal-based,
    • Nich Fabrici
       
      They are a MONOPOLY- they rule more then 50% of they Coal Market in India
  • increased supply of coal
  • economic growth
    • Nich Fabrici
       
      Although Economic Growth is Macro, it shows a strong correlation between the two.
  • The government earlier this year directed Coal India to sign pacts with the utilities that became operational after April 2009,
    • Nich Fabrici
       
      Government has Intervened- declaring that it will be a Monopoly after signing packs.
  • as was the case in the previous supply pacts.
  • 14 power producers out of a total of about 40 utilities that are likely to sign pacts.
    • Nich Fabrici
       
      MAXIMUM PRICE  SUBSIDIES?
Nofar Lapidot

BBC News - Qantas forecasts profit to slide by up to 90% - 2 views

  • highest ever fuel bill
    • Nofar Lapidot
       
      Increase in price of FoP
  • It has forecast a profit before tax of between A$50m ($48.6m; £31.6m) and A$100m for the year ending 30 June.
  • dropped as much as 18%
    • Nofar Lapidot
       
      decrease in demand 
  • ...2 more annotations...
  • double to A$450m
    • Nofar Lapidot
       
      double the losses demand shift in, supply shift in because of high price of FoP
  • competition has increased
    • Nofar Lapidot
       
      more alternatives
  •  
    Quantas profit decreases by 90%
Nofar Lapidot

BBC News - McDonald's profits boosted by store revamps - 2 views

  • 13 months rose 8.9%
    • Nofar Lapidot
       
      Shift outward in demand
  • solid sales growth of 5%
    • Nofar Lapidot
       
      shift out in demand even though economic downturn in europe. Possibly because McDonalds is cheap making it popular.
  • 1,300 new stores
    • Nofar Lapidot
       
      expansion in supply
  •  
    Increase in demand for McDonalds even though there is an economic downturn in Europe.
Yihan Li

$6 billion-a-year ethanol subsidy dies -- but wait there's more - U.S. News - 2 views

  • America's corn farmers have been benefiting from annual federal subsidies of around $6 billion in recent years, all in the name of ethanol used as an additive for the nation's vehicles.
    • Yihan Li
       
      A supply and demand diagram showing how the loss of subsidy should affect price
  • thanks in part to high oil prices that make ethanol competitive.
    • Yihan Li
       
       Ethanol is a substitute good of oil. High price of oil thus make ethanol relatively cheap (Calculate XED if with sufficient data)
  • tax credit
    • Yihan Li
       
      tax credit is "sum deducted from the total amount a taxpayer owes to"  
  • ...4 more annotations...
  • tax credit is up to $1.01 per gallon.
    • Yihan Li
       
      Tax credit, a form of subsidy, keeps the price low and companies profitable. 
  • corn ethanol, which now takes a larger share of the U.S. corn crop than cattle, hogs and poultry, as a factor in driving food prices higher.
  • What the industry doesn’t want to see, however, is an end to a separate tax credit for ethanol made not from corn but non-foodstuffs like switchgrass, wood chips and even the leaves and stalks of corn.
    • Yihan Li
       
      Possible evaluations 1) why government wants to keep one type of subsidy while getting rid of the another type? 2) pros and cons of keeping this subsidy 
  • That ends on Jan. 1
    • Yihan Li
       
      Possible evaluations 1)pros and cons of having subsidies for ethanol 2)was the subsidy effective 3) why did the government implement this in the first place 4) what could the government have used other than tax credit
Isabella Yamamoto

Paul Krugman attacks Britain's austerity drive as 'deeply destructive' | Business | gua... - 2 views

  • increasing it by 2% of GDP
    • Isabella Yamamoto
       
      I can talk about the multiplier effect and how increasing in spending can lead to a boost in AD
  • austerity policy as "deeply destructive"
    • Isabella Yamamoto
       
      I can look at the argument made for increasing spending during a recession, and look at the argument made against.
  • to do so would be to admit its mistake
    • Isabella Yamamoto
       
      Perhaps I could look at how political interests can mean that policies do not always pass policies that are in the best interest of a countries economy.
  • ...1 more annotation...
  • 30% of unemployed people having been out of work for 52 weeks or more, compared with 9.5% in 2008.
    • Isabella Yamamoto
       
      How austerity measures reduce spending in public + private sectors. How that leads to more jobless. Can also look at structural unemployment and how AD will continue to fall because of lower income per capita.
Edward Pearson

Euro-Region Inflation Rate Declines More Than Forecast - Bloomberg - 2 views

  • fell to 2.4 percent from 2.6 percent
    • Joe Kanagawa
       
      Inflation rate has gone down, but it's still positive, so "disinflation" is happening in the said region.
    • Edward Pearson
       
      below 5% - deflation possible in future
  • Crude-oil prices have dropped about 16 percent in the past two months, easing inflation pressures
    • Joe Kanagawa
       
      The type of inflation the region is in could be "cost-push inflation" due to changes in the prices of oil affecting the inflation rate.
    • Edward Pearson
       
      decrease in oil - oil would be part of basket of goods for CPI - inflation could be higher because governments could underrate the spending on oil and change figures 
  • Still, data today showed the German unemployment rate fell to 6.7 percent in May from 6.8 percent
    • Joe Kanagawa
       
      Fall in unemployment rate will normally cause the inflation rate to increase, but in this case, it didn't
    • Edward Pearson
       
      -possible shift in SRPC 
    • Edward Pearson
       
      -low inflation and low unemployment is ideal for economy 
  • ...2 more annotations...
  • German business confidence fell more than economists forecast in May,
  • consumer spending also rose more than projected last month, increasing 0.6 percent
Melanie Arxhoek

Mass strikes across India over fuel prices - Central & South Asia - Al Jazeera English - 2 views

    • Melanie Arxhoek
       
      The economic growth in India has slowed down as the figures show for the first quarter of this year as it only expanded by 5.3%. There could be different reasons for this.
  • The strike came on the same day as shock economic growth figures for the January-March quarter showed the slowest quarterly expansion in nine years, of 5.3 per cent
  • The listless economy, high inflation and a series of corruption scandals have weakened the coalition government headed by the 79-year-old Singh and his Congress party
  • ...5 more annotations...
    • Melanie Arxhoek
       
      Here some problems are mentioned, which would impact the recent decrease in growth and thus the rise in fuel costs.
  • Last week, Indian state-run oil firms announced the sharpest jump in petrol prices in nearly a decade to offset growing losses caused by subsidised rates
  • Once taxes are included, the price increase of Rs6.28 (11 US cents) per litre will result in a Rs7.5-rupee rise for consumers in cities such as Delhi
    • Melanie Arxhoek
       
      This further expands into the reasons of why the fuel prices have risen.
    • Melanie Arxhoek
       
      In this sentence we finally get some statistics that we could use to draw a graph and show the shift in price.
  •  
    11% increase in fuel costs, going from Rs 6.28 per litre to Rs 7.5. Growth figures for the first quarter showed the slowest expansion in 9 years of 5.3%. Listless economy, high inflation and corruption has weakened the economy. Annual inflation is currently at 7%
  •  
    Article I will use for Macro IA
Tessa Jalink

Australian economy good enough to keep interest rates on hold | Television New Zealand ... - 2 views

  • out weaker commodity prices and the mining
  • mining boom
    • Tessa Jalink
       
      Concerns that mining boom is over. This would cause a reduction in GDP
  • hold off on another rate cut
    • Tessa Jalink
       
      Further reduction in RoI is not necessary
  • ...8 more annotations...
  • softness
    • Tessa Jalink
       
      Economy is unstable, possibly due to uncertainty in mining?
  • investment and exports
    • Tessa Jalink
       
      Increase in I + X, resulting in an increase in AD
  • interest rate cuts
    • Tessa Jalink
       
      Interest rates have been cut over the past year. 
    • Tessa Jalink
       
      This should cause an increase in C, resulting in an increase in AD. 
  • potential for rises
    • Tessa Jalink
       
      Very positive outlook.
  • growth and inflation
    • Tessa Jalink
       
      Inflation & GDP growth is expected
    • Tessa Jalink
       
      Caused by previous RoI cuts.
  • mining boom.
    • Tessa Jalink
       
      Concerns about mining boom, global uncertainty caused business confidence to decrease.
    • Tessa Jalink
       
      Resulted in a decrease in I
  • mining
  • employment.
    • Tessa Jalink
       
      Increase in employment caused rise in business conditions.
Emily Hoshi

Panasonic looking to slash HQ personnel | The Japan Times Online - 2 views

  • Panasonic looking to slash HQ personnel
    • Emily Hoshi
       
      Panasonic (oligopolistic firm) is considering to cut workers due to recession, so microeconomics on oligopoly with the x-axis with quantity and y-axis with price can be made.
    • Ayaka Matsumura
       
      In the end, is it possible to find a way to NOT cut workers?
    • Ayaka Matsumura
       
      In your IA maybe you could add a simple note saying how long the recession has been going on.
  • reduce costs and streamline the organization
    • Emily Hoshi
       
      I assume this section is saying that they are trying to reduce costs of production and increase efficiency. However, in most cases if a firm tries to lower the price they would lose customers due to price war between other firms that produce homogenous goods so it would be risky to change prices when its oligopoly. Although, their main aim is to recover its business so they are trying to cut many workers, reduce costs and increase efficiency.
  • drastic workforce downsizing at its Osaka
    • Emily Hoshi
       
      Brings marginal cost shift inwards and by that also the average cost shift inwards as well 
    • Emily Hoshi
       
      Slush in labours at Panasonic Corps in Osaka 
  • ...5 more annotations...
  • recovery of its business performance at an early date by speeding up decision-making, in addition to cost cuts after logging a massive group net loss in the business year
    • Emily Hoshi
       
      Same points made from the previous paragraph, due to recession they are aiming to increase efficiency and cut costs
  • redirecting company resources into new growth areas
    • Emily Hoshi
       
      I assume that "new growth areas" is to move the company to a more rural area because having a business at a city has a high land cost where rural areas can be much cheaper therefore, this can benefit the firm by having the cost curves to shift outward. 
  • energy-efficient products and solar panels
    • Emily Hoshi
       
      One of the factors of production, capital by having new technology such as (mentions here) solar panels. It reduces the light energy use, etc costs in the company.
  • loss of ¥772.17 billion
    • Emily Hoshi
       
      This can be shown on demand and supply where supply shifts outward, showing the loss of 772.17 billion yen on the price axis 
  • 36,000 over the year to some 330,000
    • Emily Hoshi
       
      This can be shown on phillips curve (?) to show the increase in unemployment rate by having the aggregate demand to shift inwards. 
  •  
    this is my IA
Risako Okamoto

Gold Extends Decline as Dollar Strength Counters Stimulus Bets - Bloomberg - 2 views

  • Gold Extends Decline as Dollar Strength Counters Stimulus Bets
    • Risako Okamoto
       
      supply and demand
  • euro weakened
    • Risako Okamoto
       
      money value went down
  • Gold fel
  • ...1 more annotation...
  • however the dollar’s strength will continue to act as a resistance to rising prices,
Faizal Zubir

Mid East gas demand to outpace supply - IEA | Energy & Oil | Reuters - 2 views

  • demand to rise by 79 billion cubic metres (bcm) or 20 percent from 2011 to 2017
    • Faizal Zubir
       
      A shift on demand curve.
  • Middle Eastern demand for natural gas is likely to rise faster than supply over the next five years
    • Faizal Zubir
       
      A rise in price.
  • ...3 more annotations...
  • In a few countries, gas demand has therefore to be curtailed," the report says.
    • Faizal Zubir
       
      Demand has to decreased, ads for other alternatives.
  • Middle Eastern governments will have to either curb demand or import a lot more expensive gas.
    • Faizal Zubir
       
      Evaluation in which one is better.
  • low gas prices encourage consumption and discourage production.
    • Faizal Zubir
       
      Reason explaining the higher demand and low supply.
Isabella Yamamoto

California cigarette tax vote too close to call - CNN.com - 1 views

  • cigarettes
  • The money is going to be invested in cancer research here in California and on tobacco prevention
  • stop kids from smoking
    • Isabella Yamamoto
       
      Higher prices will be a disincentive to buying cigarettes 
  • ...3 more annotations...
  • it will heavily affect poorer Americans, who are more likely to smoke
    • Isabella Yamamoto
       
      Poorer Americans have more inelastic PED's
  • the state's ban on smoking in public places,
  • Some grant proposals that currently go unfunded would find a source of revenue, he said.
Mo Settles

Gas survey reports its first price drop of the year - CNN.com - 1 views

  • "We may see another five to 10 cents decline in the next few weeks" if crude oil doesn't rise, she said.
  • Atlanta: $3.79 Boston: $3.95 Denver: $3.87 Houston: $3.85 Memphis, Tennessee: $3.72 Portland, Oregon: $4.02
  • their first dip since December, according to a nationwide survey published Sunday.
  • ...16 more annotations...
  • A gallon of regular now costs $3.91 on average,
  • down more than 5 cents from two weeks earlier, when the average was just a few cents below the $4 mark.
  • crude oil for allowing gasoline
  • Gasoline supplies are plentiful, but crude oil prices had been "propping up" gasoline costs, she said. As crude oil prices have stabilized, gasoline prices have fallen.
  • Even looking ahead to later in May, as the country enters peak driving season, prices might not jump if crude oil stays stable because gasoline supplies are flush
  • one year ago was $3.8
  • ust three cents under
  • tabulates prices every two weeks at thousands of gas stations nationwide.
  • The city with the lowest average gas price was Tulsa, Oklahoma, at $3.52
  • San Francisco: $4.21
    • Mo Settles
       
      Why did the price change? -crude oil  -lots of gasoline  -crude oil stable/gasoline has prices fallen -
    • Mo Settles
       
      By how much did quantity change? -quantity of crude / gasoline increased
    • Mo Settles
       
      Who was effected by price change? -American citizens -The Oil Companies -Government?  
    • Mo Settles
       
      How was price impacted? -average gas prices dropped by 5 cents (USA) -$3.91 for a gallon on average  -below $4 mark -if crude oil prices stay stable another 10 cent change is expected -prices in peak season might not change because of the steady gasoline prices -average last year $3.88 three cents under current  -
    • Mo Settles
       
      Lundberg Survey  -tabulates prices every two weeks at thousands of gas stations nationwide
    • Mo Settles
       
      Econ to talk about -PES
Joe Kanagawa

Coca-Cola cuts prices, Pepsi may follow suit - Economic Times - 1 views

  • Coca-Cola cuts prices, Pepsi may follow suit
    • Joe Kanagawa
       
      gonna be doing this one
Nich Fabrici

US economy points to jobless misery | Latest Business & Australian Stock market News | ... - 1 views

  • US economy points to jobless misery
  • US economy grew
  • slowly
  • ...16 more annotations...
  • 1.9 percent in the first quarter, instead of the 2.2 percent pace initially estimated last month.
  • Payrolls firm ADP reported private-sector employment rose by a modest 133,000 jobs in May, well below expectations, from April's 113,000 number.
  • US unemployment benefits - indicating the pace of layoffs - rose by 10,000 to 383,000 in the week ending May 26,
  • 2.0 percent,
    • Derek Schwung
       
      New jobs --> indicator of lower unemployment 
    • Nich Fabrici
       
      More jobs should stimulate the second quarter Economic growth, but didn't.
  • The four-week moving average also increased
    • Derek Schwung
       
      Find out what the four-week moving average is, could possibly be interesting 
  • The lackluster data came just five months ahead of the November presidential election in a race dominated by high unemployment concerns.
    • Derek Schwung
       
      Maybe just a political move? 
    • Nich Fabrici
       
      or an economic fault? need deeper research on this point.
  • The first-quarter slowdown was due in part to declines in private inventory investment and a pick-up in imports,
    • Derek Schwung
       
      Causes as to why it happened
  • stalled with growth at about 2.0 percent,
    • Derek Schwung
       
      Growth is stalled Could talk about what no growth would result in. 
  • Fresh jobs indicators for May on Thursday suggested that second-quarter economic conditions would do little to spur recovery in the sick labor market.
    • Nich Fabrici
       
      Decrease in Growth could mean disinflation is on it's way, to the already injured US economy.
  • 3.0 percent growth rate in the final quarter of 2011
J Hwang

China cuts interest rates - 1 views

  •  
    -macroeconomics -Monetary Policy - China's central bank decided to decrease interest rates -however, the lending rate is still much higher than that in USA, Europe and Japan. -recently China decreased the reserved ratio as well. -Eurozone crisis - decrease in demand for exports - damaging to Chinese economy -previously, China raised interest rates to decrease inflation --> however led to a slowdown in economics growth
Christian Bager

Fat tax: Denmark's fat tax strikes again | GlobalPost - 1 views

  • Denmark first slapped a fat tax on saturated fats. Now lawmakers plan to hit sugar, and even chocolate consumption, in the second wave of its pioneering assault on the country's bulging waistlines and clogged arteries.
    • Christian Bager
       
      The attempts of government intervention to change the demand of fat in the past and what the government is attempting to repeat now, in order to change the demand of sugar and chocolate. This will also change the supply of the goods, since the tax will hit the producer as well.
  • Denmark will levy an extra six Danish Kroner ($1.05) on every kilogram of chocolate. The tax would go into effect on January 1.
    • Christian Bager
       
      This section shows the desired price, through the addition of the tax. It also gives a very exact target date for when the tax should be started up. This allows for graphs to be drawn before and after the event.
  • From 2013, lawmakers plan a levy on the sugar-content of processed food set at as much as 24 Kroner ($4.20) per kilogram.
    • Christian Bager
       
      This shows how over time further taxes will be put on products, showing further change in demand and supply and the SRAS and LRAS.
  • ...6 more annotations...
  • "The new tax on sugar in food will first be implemented from 2013, and the details will be discussed in the coming year,"
    • Christian Bager
       
      Showing that further un decided taxes are also going to be implemented.
  • The rationale is to improve the health in the Danish population by giving a stronger incitement to buy more healthy food.
    • Christian Bager
       
      This shows the reasoning for the change in taxation. However it does not actually show that this will impact the demand of alternative products.
  • It's a trend that could be mimicked all over the world
    • Christian Bager
       
      Showing that these taxes may spread into other economies.
  • Danish bakers, famed for their flaky cinnamon pastries, are predictably up in arms.
  • Mike Rayner, Director of Oxford University’s Health Promotion Research Group, said that combining the fat tax with higher taxes on sugary products would prevent people substituting fatty foods with sugary treats.
  • "I think the saturated fat tax by itself would not have been particularly useful, but a saturated fat tax in conjunction with a higher tax on sugary products means they are trying to tackle unhealthy foods on two fronts."
Derek Schwung

Falling Oil Prices Are No Mystery - Businessweek - 1 views

    • Derek Schwung
       
      Microeconomics - Supply and Demand
    • Derek Schwung
       
      Current Prices 
  • $97 a barrel and West Texas Intermediate hitting $83.
  • ...18 more annotations...
  • producing more oil than it’s consuming,
    • Derek Schwung
       
      Excess Supply - cause 
  • Global oil consumption has been declining since the end of 2011, falling to 88.5 million barrels per day at the end of April, from 90.4 million barrels per day in late December 2011
    • Derek Schwung
       
      Oil consumption is falling - less demand 
  • 10 percent increase in production from OPEC during the past 12 months.
    • Derek Schwung
       
      An outward shift in supply
    • Derek Schwung
       
      Resulting of new drilling techniques and finds 
  • , driven by new finds and drilling
  • a 15-year low—a result of economic weakness and increased energy efficiency.
    • Derek Schwung
       
      Demand is low because of economic weakness and increase energy efficiency 
  • The price declines
    • Derek Schwung
       
      Decrease in price to reach equilibrium? 
  • bets that the price will rise
    • Derek Schwung
       
      Price will rise in future 
  • , will fall to $90 a barrel by September, and that West Texas Intermediate should fall to $80.
    • Derek Schwung
       
      Prediction for near future 
  • ince two-thirds of the price of gasoline is determined by the price of oil, that should continue to lower prices at the pump. At the end of May, the average price of a gallon of gasoline in the U.S. was $3.66, 12¢ lower than it was a year ago
    • Derek Schwung
       
      Gasoline should also decrease in price Happier consumers 
    • Derek Schwung
       
      This is the article for my IA 1
Tessa Jalink

Palladium: the next hot commodity? - Outside the Box - MarketWatch - 1 views

  • NEW YORK (MarketWatch) — With declining supply and rising demand,
    • Tessa Jalink
       
      Supply & Demand
  • 6.8 million ounces
    • Tessa Jalink
       
      Initial Supply Value
  • increase in palladium supply does not look likely.
    • Tessa Jalink
       
      Not an Increase in Supply Decrease? No Change?
  • ...8 more annotations...
  • declining palladium production
    • Tessa Jalink
       
      Suggests a Decrease in Supply
  • prices being able to rise since then,
    • Tessa Jalink
       
      Increase In Price
  • supply will likely stagnate
    • Tessa Jalink
       
      No Change in Supply
  • demand for the metal is only going to increas
    • Tessa Jalink
       
      Increase in Demand.
  • curtailing their production
    • Tessa Jalink
       
      Decrease in Supply
  • greater need for catalytic convertors, and therefore an increased demand for palladium.
    • Tessa Jalink
       
      Increase in Demand
  • investment demand
    • Tessa Jalink
       
      Even larger increase in demand
  • $1,000. Today, palladium is at around $615
    • Tessa Jalink
       
      Can be used for values on the price axis. 
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