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

DIVIDEND POLICY

Factors Influencing Dividend Decisions

Rate of Asset Expansion

Companies planning significant expansion may retain earnings to finance growth, avoiding the cost and time involved in raising new capital.

Profit Rate

A company's profitability directly impacts its ability to pay dividends. Higher profits lead to more available cash for distribution to shareholders.

Earnings Stability

Companies with stable earnings are more likely to consistently pay dividends compared to those with volatile earnings.

Access to Capital Markets

Easy access to capital markets allows companies to raise funds for expansion without retaining earnings, providing flexibility in dividend policy.

Control and Ownership

Management may retain earnings to maintain control...

Productivity

Productivity is the measure of output relative to the inputs used to create it.

Productivity Formulas

General Productivity: Quantity of Output / Quantity of Input

Labour Productivity: Output over a Given Period / Number of Employees

Production Methods

Lean Production

Lean production encompasses techniques used to minimize waste and maximize efficiency. This can involve reducing product development time and accelerating time to market.

Kaizen

Kaizen, a Japanese term meaning "continuous improvement", emphasizes eliminating waste to enhance efficiency.

Just-In-Time (JIT)

Just-In-Time (JIT) is a production method that aims to minimize or eliminate the need for finished goods inventory. Supplies arrive precisely when needed for production.

Production

The Interwar Period: Economic Turmoil (1918-1939)

Global Economic Context

Following World War I, European countries faced devastating human losses, rampant inflation, and low production. They were burdened by significant war debts and desperately needed credit to finance their reconstruction efforts. The crisis was especially severe in Germany, which was unable to pay war reparations, facing hyperinflation, and struggling with immense debts.

In contrast, the United States emerged as the world's leading economy, becoming a hegemonic power in international trade and finance. The dollar became the main currency for international transactions. European countries were obligated to repay their war loans to the USA, and US agricultural and industrial...

Name three DHS Program Offices

-Office of Child Development and Early Learning (OCDEL); Office of Children, Youth and Families (OCYF); Office of Developmental Programs. (ODP)

Describe what NAS stands for and one change they recommended (Book)

National Academy of Sciences: the need to adjust for cost across geographic regions

Define what SNAP stands for and describe what it provides

-Supplemental Nutrition Assistance Program: Provides nutrition benefits to people in need so they can afford to purchase food.

List two effects of poverty as discussed in Power Point

-Negative effects on wellbeing of children, Homelessness, Illness, Poor Academic achievement.

US and Britain underwent a study between 1992 and 2003 regarding “stayers” of poverty. Approximately

Chapter 15

Which one of the following statements is the MOST accurate?

D) A rise in the average value of transactions carried out by a household or a firm causes its demand for real money to rise.

If there is initially an

B) excess supply of money, the interest rate will fall, and if there is initially an excess demand, it will rise.

Which one of the following statements is the MOST accurate?

D) An increase in the money supply lowers the interest rate while a fall in the money supply raises the interest rate, given the price level and output.

An increase in

E) real output raises the interest rate while a fall in real output lowers the interest rate, given the price level and the money supply.

The aggregate real money demand schedule L(R,Y)

D) slopes...

Understanding Wealth Taxation

A wealth tax is a tax periodically levied on an individuals' net value of assets.

Definition and Scope

These assets, for example, include:

• Bank deposits
• Savings
• Real estate
• Luxury items (art, jewelry, airplanes, etc.)
• Personal trusts

Liabilities like mortgages, loans, or other debt are deducted from a person's wealth.

Global Implementation

Current Adopters

Currently, three countries have a wealth tax implemented in their tax systems:

• Norway
• Spain
• Switzerland

Tax characteristics vary from country to country and sometimes even within a country.

Specific Cases

Belgium recently implemented a form of wealth tax that, unlike in other countries, only includes financial instruments held in an individual's securities accounts.

France abolished...

1. Introduction: The European Union

Important dates: 7 enlargements:
- UK, Ireland, Denmark (1973)
- Greece (1981)
- Portugal and Spain (1986)
- Finland, Sweden, Austria (1995)
- 10 countries (2004)
- Bulgaria and Romania (2007)
- Croatia (2013)

7 treaties:
1. Treaty of Paris (1950): European Coal and Steel Community
2. Treaty of Rome (1957): EURATOM, EEC, ECSC.
3. Treaty of the European Single Act (1986): the Single Market.
4. Treaty of Maastricht (1991): the Treaty of the EU.
5. Treaty of Amsterdam (1996)
6. Treaty of Nice (2001)
7. Treaty of Lisbon (2009)

1 downsizing: Brexit (2019-?)

Aspects of the European Integration Model - Mechanisms:
- Single market.
- Customs Union.
- Single currency.
- European institutions.
- Interterritorial cohesion policies.
- Common...

Tax Burden, Ratio, and Tax Structure

The OECD Classification of Taxes

• 1000: Taxes on income, profits, and capital gains
  • 1100: Taxes on income, profits, and capital gains of individuals
  • 1200: Corporate taxes on income, profits, and capital gains
• 2000: Social security contributions
  • 2100: Employees
  • 2200: Employers
  • 2300: Self-employed or non-employed
• 3000: Taxes on payroll and workforce
• 4000: Taxes on property
  • 4100: Recurrent taxes on immovable property
  • 4200: Recurrent taxes on net wealth
  • 4300: Estate, inheritance, and gift taxes
  • 4400: Taxes on financial and capital transactions
  • 4500: Other non-recurrent taxes on property
  • 4500: Other non-recurrent taxes on property
  • 4600: Other recurrent taxes on property
• 5000: Taxes on goods and services
• 6000: Other taxes

Tax Base

Capacity Planning Considerations

Capacity can be stated in terms of inputs or outputs. Planning capacity too low results in unmet demand, while planning it too high results in higher costs.

Facility Considerations

Facility: Permanent, semi-permanent, or temporary commercial or industrial property such as a building, plant, or structure, built, established, or installed for the performance of one or more specific activities or functions. When deciding where to produce (Facility), important factors to consider:

• Proximity to market
• Availability of raw materials, transportation, power, and labor
• Climatic influences and community characteristics
• Taxes and inducements

Facility Layouts

1. Fixed-Position Layout

A layout that brings all resources required to...

Resources and Influence of Interest Groups

Interest groups leverage various resources to exert influence over Congress:

• Finance: Money empowers interest groups to run campaigns, make monetary contributions, purchase television advertisements, and employ a large staff. A larger staff translates to more opportunities for promotion, lobbying, and campaign contributions.
• Expertise: Congress respects and pays attention to interest groups perceived as experts in their respective fields. This perceived expertise can enhance their credibility and influence, allowing them to directly impact policy decisions.
• Size: Larger groups wield greater influence due to their ability to mobilize votes and resources effectively. Their size facilitates fundraising and