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

CHAPTER 3

16) If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then

B) country H and country F will both gain from trade.

17) If the world terms of trade equal those of country F, then

A) country H but not country F will gain from trade

18) If the world terms of trade equal those of country H, then

E) country F but not country H will gain from trade

CHAPTER 4

37) In the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth.
A) an ambiguous change;... Continue reading "International Trade and Specific Factors Model" »

Address the least developed countries' special needs:

• Tariff- and quota-free access for their exports
• Enhanced debt relief for heavily indebted poor countries
• Cancellation of official bilateral debt

Address the special needs of landlocked and small island developing states.

Deal comprehensively with developing countries' debt problems.

Develop decent and productive work for youth.

In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries.

Activity: Global Public Good

i. Choosing one global public good. Argue why it should be considered as a global public good.

- Author defines global public good as a good, service, or resource that is available for all because it involves non-rivalry and non-excludability.... Continue reading "Developing a Global Partnership for Development: Addressing Special Needs and Debt Problems" »

troškovna primjena??

How to use implications of multiple output cost functions?

Economies of Scope and Cost Complementarity

Economies of scope

• total cost of producing both products together is less than the total cost of producing both products separately

Implications for managerial decision making: managers alert to the possibility of profitably extending the product line to exploit economies of scope: reasons for mergers and acquisitions, reasons for not disinvesting a product line

Cost complementarity

• exists when the marginal cost of producing one output is reduced when the output of another product is increased:

Example of specialized investment

An investment in a particular exchange that cannot be recovered in another trading relationship

• Eg. Spending

Between 1870 and 1914, the Second Industrial Revolution transformed global economies, characterized by rapid industrialization driven by the growth of the financial sector and the rise of finance capitalism.

Financial Innovations and Capital Growth

This era saw significant innovations in finance, providing new sources of capital for burgeoning industries:

• Joint-Stock Company: A company formed by individuals who invested by buying shares, receiving a proportionate part of the company’s profits and losses.
• Banks: Financial institutions began to lend money to businesses in return for interest and started investing in shares. These changes fostered a closer union between financial and industrial capital.
• Stock Exchange: A marketplace where shares

Core Accounting Equation Elements

Understanding the fundamental components of a business's financial position:

• Assets: Resources owned by the business that have future economic value, such as cash, land, and equipment.
• Liabilities: Obligations or debts owed to external parties, including loans and accounts payable.
• Equity: The owners' residual claim on the assets after deducting liabilities, comprising common stock and retained earnings.
• Revenue: Income generated from the primary operations of a business, typically from sales of goods or services.
• Dividends: Distributions of a company's earnings to its shareholders.
• Accounts Receivable (A/R): Money owed to the company by customers for goods or services that have been delivered but not yet paid for.

Enterprise Location

The location of a business is usually considered when the business is first setting up. We may come across two kinds of problems: location and dimension. First, we should research the market and see if our product has any demand or interest, and analyze the level of competition. Then, we should analyze raw materials’ supply, the job market, the cost of the land where the business will be located, transportation facilities, government influence and laws, facilities for investing and acquiring money, and finally, the region's economic development.

Enterprise Structures

Holding

The parent company buys the shares of the subsidiaries or branches, so the parent is the owner. The parent makes the most important decisions because,... Continue reading "Enterprise Structures: Location, Holding, and More" »

  The rise of finance capitalism affected an organisation of work, the development of consumerism, economic inability and the expansion of international trade.

THE ORGANISATION OF WORK

  The assembly line developed: each worker specialised in a task, such as placing a nut. Henry Ford was the first to use the assembly line in his car manufacturing company.

THE BIRTH OF THE CONSUMER SOCIETY

  The consumer society led to a new way of thinking; people began to value material wellbeing highly.

  *The upper class was the only social group that could afford luxury items.

  *The lower class had lower wages and couldn't afford luxury items.

Understanding Hotel Booking Engines

Booking Engine (BE): A hotel booking engine is an application on hotel websites and social media pages designed to capture and process direct online reservations. It works by integrating with your hotel website to securely process bookings. Notable providers include Mirai, Bookassist, and Roiback.

Benefits of Revenue Management Strategies

A robust revenue management strategy offers several key benefits:

• Improved ability to predict customer wants and needs.
• More effective and competitive pricing strategies.
• Expansion into new and available markets.
• Stronger relationships and collaboration between company divisions.

Dynamic Pricing: The Optimal Strategy

Dynamic pricing is often considered the optimal strategy because... Continue reading "Hotel Revenue Optimization: Strategies for Direct Bookings" »

Bank Liabilities & Financial Operations

Deposits: Core Bank Liabilities

A deposit is a contract or transaction involving the transfer of money to a bank account.

Types of Deposits:

1. Demand Deposits: Normal deposits for frequent, on-demand access to funds. They are more liquid and less costly for the depositor.
   • Current Accounts: Deposit accounts not primarily for earning interest or savings, but for the convenience of business or personal clients.
   • Money Market Accounts: Less liquid, offering higher interest rates. These are interest-bearing deposit accounts based on current money market rates, typically requiring a higher minimum balance to earn interest or avoid fees.
   • Savings Accounts: Less liquid, offering lower interest rates. These accounts