Avemaoe Galeai & Its Relation to the McDonalds business

1Task: Research 3 issues that economists might study that relate to McDonalds business. For example, economists study the exchange rates among different world currencies by looking at the Big Mac Index (the price of a Big Mac in different countries). What else might economists help us understand about McDonalds?

2Unemployment RateProfit=Revenue-Cost.The Three Issues:

Minimum Wage

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A persons income allows them to live or maintain a type of lifestyle. When one is unemployed, their standard of living is threatened and then somewhat compromised. They may no longer eat out twice a day or order as much. This results in less meals being sold which results in loss of other ideals (ex: profit) and eventually creates a disastrous cycle. 4

McDonalds has another option-raise their minimum wage. However, that would create damage. Increasing minimum wage can affect McDonalds by causing others to lose jobs and the company to lose money. McDonalds employs many individuals and raising ones pay can struck a change in the profit and deflate anothers pay. There have been a lot of disrupts about increasing minimum wage and this can be a problem. It is very careful for one to pay attention to this because one day, McDonalds may just lose a vast amount ofworkers; and that can really affect the companys sales.

In any business, corporation, company, etc., the profit is very important. (Nonetheless, all other aspects are just as important!) Economists must carefully watch profits because this is how expenses are taken care of, workers are remunerated, rent is paid and business continues. If the profit moves towards the negative direction, the business expectations, goals, dreams will probably move the same way. Profit= Revenue-Cost6

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