Notes, abstracts, papers, exams and problems of Economy

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" »

1. What is economic competition?

The set of actions that undertakings (companies) take to obtain the preference of consumers, these actions include rivalry among companies and are only feasible because there are conditions that facilitate open and participative markets.

2. Mention and describe at least three negative effects that occur in markets when there are no conditions of effective competition.

• There are no alternatives in goods and services
• High prices
• There is no innovation, which causes inefficiency

3. What is the difference between economic regulation and the correct policy of economic competition? Describe at least two differences.

Regulation: Preserve the most valued elements by a given group through mechanisms of standard setting, information... Continue reading "Understanding Economic Competition: Effects, Regulation, and Characteristics" »

Effect of an increase in the price of a product? leftward movement along demand curve

If price of product is above equilbrium: Quantity supplied exceeds quantity demanded

Inferior product: Product which consumers buy less as incromes increase

Oppurtuniy cost of 2 plates of rice, is 1 fish; Two videos for one movie

Substitue products: Price of one increase, quantity purchased of other increases

Which is not a capital good: home's lawnmower, furnace in a steel mill, golf course, construction crane

Oppurtunity cost refers to x-axis: For a loss of 1 tonne of butter, you produce 4 guns; next best alternative

If technology doubled output of guns, at 4 tonnes of butter , 28 guns would be produced

Surplus is above eqilibrium, For surplus to be 600, price... Continue reading "The long-run supply curve under pure competition is derived by observing what happens to market price and quantity when market:" »

Travel Agencies

Definition and Functions

A travel agency is a business that sells travel services like tours, cruises, transportation, accommodation, meals, and sightseeing to the public. It utilizes management practices such as division of labor and hierarchical authority to achieve its objectives, including customer satisfaction and profit generation. Acting as a representative of airlines, hotels, tour companies, and cruise lines, travel agencies cater to both leisure and business travelers.

Expert Advice and Packages

Travel agents provide valuable advice to tourists regarding climate, local culture, customs, and other essential information. They also play a key role in selling package holidays, drawing inspiration from pioneers like Thomas... Continue reading "The Role of Travel Agencies and Tour Operators in the Tourism Industry" »

Crafting Effective Paragraphs

Organizing Your Ideas

Categorization: One effective way to organize your ideas is by sorting them into categories. If an idea doesn't fit, set it aside for later. As you sort, new ideas may emerge; include them if they are relevant. Consider how one writer organized her thoughts on the topic: "I always liked my aunt Alicia best."

Writing Paragraphs

Each paragraph should revolve around one central, controlling idea, often expressed in a topic sentence. Supporting details then develop this main idea by providing evidence, clarification, or elaboration.

Topic Sentences

A topic sentence can be a statement or a question. Regardless of its form, a good topic sentence clearly conveys the main idea and engages the reader. Your... Continue reading "Crafting Effective Paragraphs: A Guide to Organizing Your Ideas" »