Notes, summaries, assignments, exams, and exercises for Economics for Secondary education

Key Business & Finance Terms

1. Bargain

Something that is of very good quality but relatively inexpensive.

2. Change

The money that someone gives back to you when you pay more than something actually costs.

3. Currency

The system or type of money that a country uses.

4. Discount

Something you buy that costs much less than normal.

5. Entrepreneur

Someone who starts a new business or arranges business deals in order to make money, often in a way that involves financial risks.

6. Fair Trade

The activity of making, buying, and selling goods in a way that is morally right.

7. Loan

An amount of money that you borrow from a bank, etc.

8. Mortgage

A legal arrangement by which you borrow money from a bank or similar organization in order to buy a house, and pay...

International Trade

No country can provide everything its inhabitants want or need. To address these needs, countries engage in international trade.

Imports and Exports

Imports: A country buys goods and services that it either lacks or can obtain more cheaply from elsewhere.

Exports: To pay for imports, a country sells goods and services it has a surplus of or can produce more cheaply than other countries.

Trade Surplus and Deficit

Trade Surplus: A country earns more money from exports than it spends on imports.

Trade Deficit: A country spends more on imports than it earns from exports.

Interdependence

Interdependent Countries: Nations that engage in trade with each other.

LEDCs and MEDCs

LEDCs: Typically export cheap foodstuffs (e.g., tea, coffee) and...

Angel Investors

An angel investor (also known as a private investor) is an individual who provides financial backing for small startups or entrepreneurs, typically in exchange for ownership equity in the company. The funds that angel investors provide may be a one-time investment to help the business get off the ground or an ongoing injection to support and carry the company through its difficult early stages.

Venture Capital

Venture capital is a type of funding for a new or growing business. It usually comes from venture capital firms that specialize in building high risk financial portfolios. With venture capital, the venture capital firm gives funding to the startup company in exchange for equity in the startup. This is most commonly found...

1. Backward Integration

   Assuming a function previously provided by a supplier.

2. Bankruptcy

   A company gives up management of the firm to the court.

3. Competitive Strategies

   Cost leadership, differentiation, and focus.

4. Concentric Diversification

   Growth into a related industry with a strong competitive position.

5. Conglomerate Diversification

   Diversifying into an industry unrelated to its current one.

6. Cooperative Strategies

   The direction of the firm as a whole and the management of its business or product.

7. Corporate External Growth Strategies

   Funds to purchase other companies.

8. Defensive Tactics

   Takes place in the firm’s own current market position as a defense against rivals.

9. Economies of Scale

   Cost falls as the company benefits at a higher level.

10. Executive

Understanding Key Concepts in International Trade

1. Trade Diversion and Trade Creation

Trade Diversion is a shift in the pattern of trade from low-cost world producers to higher-cost Custom Union or FTA members. It is often viewed as welfare-reducing for the world.

On the other hand, Trade Creation refers to the expansion in world trade that results from the formation of a preferential trade agreement.

2. Rules of Origin

Rules of Origin are the requirements that domestic producers or exporters must fulfill in order for their products to be considered as originating in a specific country and receive the benefits of tariff reductions. This measure is created to avoid trade deflection.

These rules define whether a good is eligible for duty-free treatment,...

Defining The Problem:

1st step is defining the problem. Problem Definition involves discussion with decision makers, interviews with experts, analysis of secondary data. Once defined, research can be designed and conducted properly.

Developing an Approach to the Problem:

Formulating an Objective or Theoretical Framework, analytical models, research questions, and Hypotheses, and identifying the information needed.

Research Design Formulation:

The Blueprint for conducting the market research project, which details the procedures necessary to obtain required information. The purpose is to design a study that will test the hypotheses, determine possible answers to the research questions, and provide information needed for decision making. Addressing...

Ricardian Model

Unit Labour Req.  Pears(Ib).  Oranges(Ib)

Home                  4h (aLp).         3h (aLo)

Foreign.              6h (aLp*).        1h (alp*)

Absolute Advantage - country takes less time to produce goods?

Home -> pears // Foreign -> oranges

Comparative Advantage - lower opportunity cost 

- Home has a C.Adv in pears production as its opp. cost of pears production is lower than foreign country - will specialize in pears

PPF (grafico) - (aLp · Qp) + (aLo · Qo) <= L

4Qp + 3Qo <= L (Qp = 300 & Qo=400)

Maximum home pears production is 300 and oranges 400

Slope = opp. cost - the opp. cost of pear is how many pounds of oranges Home must stop producing in order to make one more pound of pear

Absence of

Dimensions of Corporate Social Responsibility (CSR)

ETNOR Model

The ETNOR Model establishes the dimensions of CSR based on the type of responsibility that the action generates and the social expectations generated by each of them:

1. Philanthropic Responsibility

• Resources provided by companies with social, educational, recreational, and cultural purposes
• Contribute to the community in which they are located
• Desired by some stakeholders of the company

2. Ethical Responsibility

• Obligation to do what is right even if companies are not required by law
• Expected by some stakeholders

3. Legal Responsibility

• Obey laws, adhere to regulations
• Required by some stakeholders

4. Economic Responsibility

• Be profitable
• Maximize return on sales
• Minimize costs
• Make appropriate

Chapter 4: The Federal Reserve's Responsibilities and Operations

Three Main Responsibilities of the Federal Reserve

1. Achieve full employment
2. Maintain price stability
3. Maximize economic growth

The Federal Reserve conducts the national monetary policy to achieve these goals.

Open Market Operations

Responsibilities:

• Control the money supply (MS)
• Set targets for MS growth and interest rate levels
• Influence the MS by buying or selling government securities (debt securities, Treasuries)

The Trading Desk

What they do: Purchase or sale of Treasuries

Impact on the economy:

• Money Supply: Purchasing government securities increases the money supply, while selling them decreases it.
• Interest Rates: An increased money supply puts downward pressure on interest rates, while

An Overview of Europe’s Film Industry

Ivana Katsarova

Despite pioneering both technological and content innovation in cinema, the EU film industry is currently characterized by the strong presence of Hollywood productions (70% market share in 2013). The major US companies benefit from vertical integration, encompassing both production and distribution, which allows them to spread risk and reinvest profits. To address the financing challenges faced by EU film companies, various film-support schemes have been established, totaling €2.1 billion in 2009.

Within the EU, the "big five" – France, Germany, the UK, Italy, and Spain – account for approximately 80% of releases, industry turnover, and employment.

Challenges Facing the European Film