Economics for Decision Making Essay Example | Topics and Well Written Essays - 750 words

Economics for Decision Making - Essay Example Their usual tool is always federal funds rate, the rate which banks pay on overnight loans to borrow from each other.     Open-Market Operations is another critical tool that when combined with favourable macroeconomic policy can help achieve desired growth as The Fed constantly sells and buys U.S. government securities more often than not in the financial markets, thus influences the level of reserves available the banking system. Should these tools be applied well throughout the 2015 and other tools, US will have even better and sustainable throughout 2015. Continental Airlines and United Airlines agreed to a $3 billion merger that would develop the world’s biggest airline, with more than 10 major hubs, dominating in Chicago, New York and Los Angeles. This through economic analysis is not beneficial to the consumers has it reduces supply and variety. In a way, it creates the monopoly. Monopoly always tends to increase prices thus consumers suffer from increased ticketing prices. The main aim of the merger is to eliminate competition and not- beneficial to consumers. International trade assists firms in increasing profits and sales as there is expanded market. Firms, particularly in the petroleum industry, are able to increase their market share. International trade allows wealthy firms to use their resources particularly those in manufacturing – whether in labour, capital or technology - more efficiently. Since they possess more assets and natural resources (, labour, technology and capital) Consumers are very much attracted to brand. Despite the availability of other good in equal quality and price brand plays an important role in consumer decision. For example, many popular supermarkets may offer cheaper brand to consumers with their brand name but still, many consumers consider traditionally known a brand of goods. Purchasing decision of any consumer may largely depend on the influence of others. When close friends and family choose a product, the likelihood of it is preferred by a particular consumer is high. For instance, many people today in the US choose mobile operators of their friends or family members.  Ã‚