Economics Homework Help

Economists explain that “[w]ealth is created when voluntary transactions move assets from lower- to higher-valued uses.” They also explain that “[v]oluntary transactions create wealth” (Froeb et al., 2018). The U.S. Census Bureau recently estimated that there are some 5.9 million profit-seeking business firms in the United States.

Choose a company to use for this paper. The company can be a U.S. firm, or a firm from any country that is easily researchable using U.S. search engines.

Identify the name of the firm, and then provide a brief description of the goods and/or services that the firm sells.

How does the company create value for consumers and wealth for its shareholders?

Explain how each of the following can influence the company’s value creation and wealth creation. You should specifically link each of the following to the specific company and industry you are evaluating. 

inflation (changes to overall price levels within an economy and to the value of money)

unemployment (the number of people who are out of a job and actively seeking a job)

1. gross domestic product (GDP or the economic growth rate for a national economy)
2. monetary policy (the actions of a government’s central bank that change the money supply and interest rates)
3. How could the firm managers assist in “identifying assets in low-valued uses and devise ways to profitably move them to higher-valued uses” (Froeb et al, 2018)?
4. Are there any impediments or factors that are present in the economy (not mentioned in #4) which impede the creation of wealth by your selected business firm? These impediments may be in the private (non-government) or the public (government) sector. Explain your answer.