Notes, summaries, assignments, exams, and problems for Economics

Economic Indicators and Financial Concepts

• Interest rate: Cost of borrowing.
• Exchange rate: Price of currency.
• Inflation rate: General increase in prices.
• Labour force: Number of people working.
• Tax incentives: Government fiscal benefits.
• Government bureaucracy: Administrative systems.
• Gross Domestic Product (GDP): Total economic output.
• Unemployment rate: Percentage of people without jobs.
• Foreign investment: Capital from overseas.
• Balance of trade: Net difference between imports and exports.
• Equity stake: Ownership interest or venture capital.
• Recession: Economic downturn.
• Shares: Units of ownership in a company.
• Debt: Money owed.
• Stock market: Exchange for trading shares.
• Forecast: To predict future trends.
• Profit margin: The difference between revenue and

Limitations of Quantitative Easing and Nonconventional Monetary Policy

Zero Lower Bound and Deflation

While quantitative easing (QE) and other nonconventional policies can be employed when short-term interest rates reach the zero lower bound, they are not a cure-all. When the economy faces deflationary conditions, designing effective policies becomes challenging due to the increased uncertainty surrounding their outcomes. Additionally, nonconventional policies like QE are more complex to implement, making it harder to effectively stimulate the economy.

Reserve Demand and Federal Funds Rate

If the actual demand for reserves exceeds the estimated demand, the actual reserve demand curve will shift to the right. If the gap is significant, the demand...

Key Financial Ratios and Formulas

Understanding key financial ratios is crucial for assessing a company's performance and financial health. Below are common ratios and their formulas:

Accounts Receivable Turnover Ratio

Accounts Receivable Turnover = Sales & Service Revenue / Accounts Receivable Balance

Accounts Receivable Turnover in Days

Accounts Receivable Turnover in Days = 365 / Accounts Receivable Turnover

Inventory Turnover Ratio

Inventory Turnover = Cost of Goods Sold (CGS) / Inventory Balance

Inventory Turnover in Days

Inventory Turnover in Days = 365 / Inventory Turnover

Current Ratio

Current Ratio = Current Assets (CA) / Current Liabilities (CL)

Quick Ratio (Acid-Test Ratio)

Quick Ratio = (Current Assets - Inventory - Prepaid Expenses) / Current

Verbs and Adjectives for Personal Growth

• Turn back (volver)
• Give up / Surrender (rendirse)
• Prove
• Dare (atreverse)
• Support (apoyar)
• Struggle (luchar por conseguir algo)
• Regret (arrepentirse)
• Avoid (evitar)
• Take risks
• Go wrong
• Amaze (impresionar)
• Encourage (animar)
• Daring (atrevido)
• Skeptical (si no lo ves, no lo crees)
• Humble
• Tough
• Inspiring
• Courageous
• Ambitious
• Determined (cabezón)
• Charming
• Influential
• Fearless (no tiene miedo a nada)
• Passionate (apasionado)

Cinema and Narrative Terminology

• Relatives, thrones, reign, army, rules, kill, advisor, heir, executed, downfall, fate, plot, loyalty, treason, assassination, outbreak
• Lead to (dirigir a), power, ally, twist, spoiler, minor character, remake, main character, scene, special effects, rating, setting, cast, leading

Public Relations

1. History: The International Public Relations Association (IPRA) was founded in the 40s when several Dutch and British PR practitioners discussed organizing PR professionals into a transnational society. Their goal was to raise standards of PR practice worldwide and improve the quality of PR practitioners. IPRA was established in London on 1 May 55. Nowadays, IPRA is an international organization with members from emerging and established countries. IPRA is governed by a secretariat in the UK. IPRA represents individual professionals, not agencies or companies. IPRA is recognized as an international non-governmental organization by the United Nations and has been granted consultative status by the Economic and Social Council...

Why Do Businesses Fail?

Businesses fail for various reasons, including:

• Creating products that customers do not want
• Running out of financial resources
• Failing to investigate their competitors

Competitive Analysis

1. Identifying Competitors

Direct Competitors: Products or services that are similar substitutes for yours and operate in the same geographic area.

Indirect Competitors: Products or services that are not the same but could satisfy the same need or solve the same problem.

2. Assessing Competitors' Strategies, Objectives, Strengths, Weaknesses, and Reaction Patterns

Benchmarking: Measuring the performance of a company's products or processes against industry leaders.

Business Analysis:

• Product line, quality, pricing, discounts

Sales Analysis:

• Sales

The Stock Exchange Market

A bond is a document issued by a government or a company borrowing money from the public, stating the existence of a debt and the amount owing to the holder who must show this document in order to obtain repayment of the loan.

Difference between bonds and stocks is that stockholders are owners of the company they’ve invested in whereas bondholders are only lenders.

Issuer is the identity who borrows an amount of money and pays the interest.

-The principal of a bond is the amount that the issuer borrows which must be repaid to the lender.

The coupon is the interest that the issuer must pay.

Maturity is the date that the issuer must pay.

Indenture is the contract that states all the terms of the bond.

A stock is a piece of...

English Finance Vocabulary

Mastering financial terminology is essential for professional communication. Below is a comprehensive list of terms used in accounting and finance.

Core Accounting and Finance Terms

• Assets (Activos/Bienes): Anything owned by a company, such as cash, buildings (edificios), and machines (máquinas).
• Expenditure (Gasto): The money that a company spends.
• Cost Accounting (Contabilidad de costos): Determining the unit cost of a manufactured product, including indirect costs.
• Liabilities (Pasivo): Money that a company will have to pay to someone else.
• Income (Ingresos): The money that a company receives from supplying goods or services.
• Bookkeeping (Libro de contabilidad): Recording transactions (purchases and sales) in ledgers.

Advertisement

Item of publicity to promote a product or service in newspapers, magazines, on TV, etc.

Advertising Agency

Marketing services firm that assists companies in planning advertisements.

AIDA

Attention, Interest, Desire, Action - the aim of all advertising.

Benefit

Advantage of a product or service.

Billboard

Signboard or wooden structure used to display advertising posters.

Broadsheet

Newspaper printed in a large format.

Campaign

Organised course or plan of action.

Circulation

Average number of copies of newspapers or magazines sold over a period of time.

Classified Ads

Small advertisement in newspapers or magazines divided into categories.

Commercial

Advertisement on radio or television.

Coupon

Part of a printed advertisement to be used to order goods...

OLIGOPOLY

A market structure characterized by a small number of sellers, each offering products that are similar or identical to those of their competitors. Examples of oligopolistic industries include chocolate bars, brewing, banking, oil, and supermarkets.

CONCENTRATION RATIO

The proportion of the total market share held by the top firms in an industry. For instance, a five-firm concentration ratio of 80% indicates that five companies control 80% of the market share.

GAME THEORY

The study of how individuals make decisions in strategic situations, considering the potential responses of others to their actions. Game theory is crucial for understanding oligopolies, as firms in these markets must act strategically due to the limited number of competitors....