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

MONEY

First of all, having money can show your status in our society: having a good car, wealthy possessions, living in an upper-class neighborhood and so on...can be representative of real happiness. Nevertheless, in our society we can see how families can't make ends meet due to their mortgage and the cost of living in general because we are having endless mortgages, and the standard of living has risen a lot over the last years.

In relation to what I would do if I become a millionaire, I think I would buy a house or a powerful car but not a sports car because it is a little uncomfortable since only two people can fit in it and you are with the roof on your head. So weighing up the pros and cons, I think the best option would be to buy a house... Continue reading "The Impact of Money on Society and Gender Differences in Financial Management" »

A Given Tax Will Cause a Smaller Deadweight Loss If

Demand and Supply Are:

• Inelastic
• Bigger Elastic

Deadweight Loss in a Taxed Market Because:

• The tax causes the market to trade less than the optimal units
• All the surplus of the units not traded is lost

Diminishing MPL States That:

• Every additional worked contributes a small increase in production that previously hired worked

Empirical i Theorical Economi:

• TE, build models
• Econ test them

How is Marginal Utility Defined:

• The change in utility from consuming one additional unit of a given good

How Do We Graphically Represent the Utility Maximizing Consumption Basket:

• The point of tangency between an indifference curve and the total budget constraint

How Does the Marginal Rate of Substitution Change as You Move

Telemarketing

It is a marketing action in which the telephone is used as the communication channel. It is aimed at contacting clients for commercial purposes, sales, or improving corporate image. It is part of a sales strategy of a company

Applications

1. Commercial applications: the goal here is to make a sale. How?

• Locating potential customers

• Arranging interviews for the sales team

• Keeping track of previous contacts

• Teleshopping

• Generating new sales of a product or a related one to the same customer (cross-selling)

• Renewing subscriptions (magazines, etc)

• Communicating new offers

• Attracting new customers

• Reactivating “silent” customers

• Follow-up, keep track of commercial offers received through postal mail or e-mail

2. Marketing applications, to gather information

Application of Multistage Games: The Entry Game

This scenario explores the strategic interactions between a potential entrant (Firm A) and an existing firm (Firm B) in a market. Firm B can choose to engage in a price war (play hard) or share the market (play soft). Despite the threat, Firm B has no incentive to play hard as it would earn less profit. The Nash equilibrium predicts Firm A entering the market and Firm B playing soft.

Managerial Decision Making with Risk-Averse Consumers

Criteria for Assessing Risk and Information Asymmetry

Managers employ various tactics to address risk-averse consumers, such as lowering prices, offering free samples, and utilizing advertising, particularly comparison advertising. Joining chain stores can also be... Continue reading "Managerial Economics: Key Concepts and Applications" »

Chapter 1: Introduction to Economics

1. Scarcity

What do economists mean when they state that a good is scarce?

d. The amount of the good that people would like exceeds the supply freely available from nature.

2. Economic Choice and Competitive Behavior

Economic choice and competitive behavior are the result of:

d. scarcity.

3. Marginal Cost

Joe and Ed go to a diner that sells hamburgers for $5 and hot dogs for $3. They agree to split the lunch bill evenly. Ed chooses a hot dog. The marginal cost to Joe then of ordering a hamburger instead of a hot dog is:

$1.

4. Opportunity Costs

The expression, "There's no such thing as a free lunch," implies that:

c. opportunity costs are incurred when resources are used to produce goods and services.

5. Economic Way

Net Cash Flow = Cash Inflows - Cash Outflows

Closing Cash Balance = Amount of cash that the business is expected to have at the end of each month

Opening Balance = Amount of money a business has at the beginning of the month

Fixed Costs = Costs that do not change with the level of output

Variable Costs = Costs that change with the level of output

Total Costs = Variable Costs + Fixed Costs

Total Revenue = Price x Quantity Sold

Profit = Total Revenue - Total Costs

Break Even Point = Total Costs = Total Revenue

Gross Profit = Sales Revenue - Cost of Sales

Net Profit = Total Costs - Total Revenue

Operating Profit = Gross Profit - Expenses

Total Assets = Liabilities + Assets

Capital = Finance provided by the owners

Non-Current Assets = Assets that last more

-(management accounting) the application of principles of accounting and financial management to create, protect, preserve, and increase value so as to deliver that value to stakeholders of profit note for profit enterprises both public and private.

(balance sheet) about shows the financial position at a point in time as one accounting period ends and another one starts. The main elements of the balance sheets are assets, liabilities, and equity.

(budget) is a financial plan. It can be seen as a statement of financial effect expected from the resource conversion process that the business has planned.

(globalization) - it is an extension of internationalization in the sense that most aspects of the production or service are performed and integrated... Continue reading "Financial Management and Accounting Principles" »

5) Family Business Survival Strategies

A study indicates that family businesses often struggle to survive across multiple generations. However, there are four key strategies that can increase their chances of longevity:

Establish Strong Governance

Creating a solid governance framework is essential. This includes attracting and retaining top talent while maintaining a clear separation between the family and the business itself.

Preserve "Family Gravity"

Identify and empower key family members who can align everyone's interests and drive the pursuit of common goals. These individuals serve as motivators and role models within the family and the business.

Early Talent Identification and Development

Invest in developing the skills and potential of family... Continue reading "Strategies for Success in Family Businesses and Modern Organizational Structures" »