Notes, summaries, assignments, exams, and exercises for Economics for Baccalaureate

Essential Cost Management Principles

Core Concepts for Multiple Choice

Cost Driver Concept

A cost driver is any factor or activity that has a direct cause-effect relationship with the resources consumed.

Flow of Overhead Costs in ABC

Understand the flow of overhead costs in an Activity-Based Costing (ABC) system:

1. Identify and classify the activities involved in the manufacture of specific products and assign overhead cost pools.
2. Identify the cost driver that has a strong correlation to the costs accumulated in each cost pool.
3. Compute the activity-based overhead rate for each cost pool.
4. Allocate overhead costs to products using the overhead rates determined for each cost pool.

Most Difficult Product Cost to Compute

Of the three product costs, manufacturing

When talking about tourism you always come with ideas like luxurious hotels, incredibles views, relaxing spaces, Paradise and pure fun, this is idea when think in Puerto Colombia.Nobody think and talk about tourism is the risk that this entails, risks as destruction of environment, pollution, overpopulation, among many other risks that result in the development of a tourist destination, but not only can we that about the risks that making Puerto Colombia a tourist city, the risks that would have been tourism in this areas, risks such as losing a large volume of visitors, less investment in the structure of city, that bring as a result less economic income to the city. So that question arise what is better, to make Puerto Colombia tourist destination...

Economics Study Guide

Fundamental Economic Concepts

Scarcity

Limited amount of resources to fulfill unlimited wants. Law of Diminishing Returns: As a company maximizes its factors of production, production becomes more difficult.

Opportunity Cost

The next best alternative sacrificed when making a choice.

Thinking at the Margin (T@M)

Making decisions based on the next unit or increment.

Production Possibilities Frontier (PPF)

A graph showing the possible combinations of two goods or services that can be produced with given resources and technology. Guns vs. Butter: A classic example of a simple PPF illustrating the trade-off between producing consumer goods and military goods.

Market Systems

Product Market

Where goods and services are bought and sold by...

Business Terminology Reference

Marketing and Sales Concepts

• Marketing
• Services
• Utility
• Form Utility
• Place Utility
• Time Utility
• Possession Utility
• Information Utility
• Market
• Consumer vs. Customer
• Market Share
• SWOT Analysis
• Sales Forecasts
• Marketing Plan
• Performance Standard
• Target Market
• Market Segmentation
• Demographics
• Geographics
• Psychographics
• Disposable Income
• Discretionary Income
• Mass Marketing

Economic Principles

Core Economic Terms

• Economic
• Goods
• Resources (Corrected from 'reasources')
• Factors of Production
• Entrepreneurship
• Scarcity
• Traditional Economy
• Market Economy
• Command Economy
• Capitalism
• Socialism
• Communism
• Supply
• Demand
• Domestic Business
• Global Business
• Imports
• Exports
• Balance of Trade
• Free Trade
• Tariff
• Quota
• Embargo
• International Trade
• Trade Deficit
• Protectionism

Intellectual Property

Key Economic and Societal Terminology

Gross Domestic Product (GDP)

The total market value of all the goods and services produced within the borders of a nation during a specified period.

Per Capita Income

The total national income divided by the number of people living in the nation. It is often used to measure a country’s standard of living.

Note: It is not the average income because it includes children and the non-working population.

Foreign Debt

The amount a country owes to other countries, either directly as a result of government-to-government loans or indirectly because of a negative balance of trade.

Growth Rate

The annual rate at which a country’s or an industry’s income increases.

Life Expectancy

The age to which an average person is expected...

Employment and Workplace Terms

• Award: A document outlining an employee’s minimum pay and conditions.
• Collective wants: Goods and services for the whole community.
• Enterprise agreement: An agreement regarding pay and conditions.
• Entitlements: Non-wage benefits, such as sick leave.
• Labour force: People with jobs.
• Loading: Extra pay on top of normal full-time wages.
• Mediation: A third party that helps reach a solution.
• Negotiation: Discussing issues to reach a compromise.
• Participation rate: The percentage of people aged 15 years or over who are employed.
• Pieceworkers: Workers paid based on the number of items made.
• Redundancy: When a job is no longer to be performed.
• Taxes: A percentage of income taken by the government.

Three Elements of an Employment

(a) (i) Sustainable Resource Strategies by 2005

State two strategies implemented by 2005 to enhance process sustainability:

• Substitution
• Recycling

[1 mark each, up to a maximum of 2 marks]

(ii) Additional Management Strategies

Name a third management strategy that could have been utilized:

• Conservation
• Reusing
• Any other valid strategy not mentioned in (i)

[1 mark]

(b) Successful Resource Substitution

Describe an example where a resource has been successfully managed through substitution:

• Specific Examples: Responses must refer to a specific successful case, identifying both the original resource and the substitute. [2 marks]
• Problem Identification: Detail the issues associated with the initial resource, such as high costs, potential exhaustion, or low efficiency.

N09/3/GEOGR/BP1/ENG/TZ0/XX

Global Population Dynamics and Health

1. Analyzing Population Trends and Health Impacts

(a) Describing Trends in Fertility and Literacy Rates

Referring to the graph, describe the trends in the two rates:

• Total female literacy rate increases over time.
• Global fertility rate decreases over time.

(Note: Responses should include specific quantification from the graph.)

(b) Reasons for Global Fertility Rate Trends

Suggest three reasons for the trend in global fertility. Reasons may include references to developed and/or developing regions, or a combination:

• Increasing emancipation of women, leading to choices for fewer children.
• Increasing educational opportunities providing career paths, thus delaying marriage or the first child.

The Principle of Scarcity

The principle of scarcity states that human needs are unlimited while the resources at our disposal to meet those needs are scarce and have alternative uses. This concept is studied through the Production Possibilities Frontier (PPF), which consists of all those combinations of products that optimally use the amount of resources a country possesses.

Graphic Representation of the PPF

• Efficient: These points are on the curve itself; you obtain the maximum amounts of product with the resources the country possesses, utilizing them at 100%.
• Inefficient: These points are below the curve; at these points, not all resources a country possesses are used, meaning there will be idle resources.
• Unattainable: These points are above

Depreciation Principles and Methods

Depreciation is a crucial accounting concept with distinct features:

• It computes the decline in value for the use of property.
• It refers specifically to fixed assets.
• It assumes an expense is spread over several years.

Common Depreciation Methods

Several methods are used to calculate depreciation:

1. The straight-line method or based on official tables.
2. The constant rate on outstanding value method.
3. The sum-of-the-digits method.
4. Following a repayment plan filed by the taxpayer.
5. Specific justification for depreciation.

Depreciation of Intangible Assets

For intangible assets such as trademarks, patents, transfer rights, or goodwill, specific conditions must be met for them to be depreciable:

• They must have been acquired for