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

Chapter 11 – Unemployment & Labor Markets

BLS Household Survey

• 60,000 households monthly

• Population: 333,287,557

  • Age 17+: 269,523,012

  • Children: 63,764,545

  • Civilian Noninstitutional Population: 263,973,000

  • Labor Force: 164,287,000

    • Employed: 158,291,000

    • Unemployed: 5,996,000

    • Not in Labor Force: 99,686,000

Key Formulas:

• Unemployment Rate (UR) = (Unemployed / Labor Force) × 100 → 3.7%

• Labor Force Participation Rate (LFPR) = (Labor Force / Civilian Noninstitutional Pop) × 100 → 62.2%

Alternate Measures of Unemployment (U1–U6):

• U3: Official unemployment rate

• Marginally attached: sought work in the past year but no longer looking

• Underskilled: working below qualifications or hours desired

• Involuntarily part-time: want full-time but work part-time

• US Unemployed

Core Microeconomics and Market Equilibrium

The optimal point is reached when MRT = MRS (Marginal Rate of Transformation equals Marginal Rate of Substitution), determining the hours to work. Market Equilibrium is the point where supply equals demand.

Game Theory and Strategy

A Dominant Strategy is the strategy that earns a higher payoff than any other strategy, regardless of the strategies chosen by other players. In game theory, the best-response function illustrates the strategy that yields the highest payoff for a player, given the strategies chosen by other players.

Production Functions and Labor Effects

The Production Function is defined as q = f(L, K), where:

• Q: Quantity of output produced.
• L: Labor input.
• K: Capital input.

The Substitution Effect... Continue reading "Microeconomics Principles and Market Equilibrium Analysis" »

TI-Nspire Engineering Economy Cheat Sheet

The Master Tools (F and G)

The Golden Rule: Look at the factor attached in the menu. The letter on the bottom of the fraction dictates what goes in that V slot.

Tool G: Present Worth (PW) Master Tool

Use to pull all money to Year 0 (today).

• Menu: V1 + V2*(P/A) + V3*(P/G) + V4*(P/F)
• V1 [No Factor]: Initial Investment (P). (Usually negative)
• V2 (P/A): Base Annual Income/Expense (A).
• V3 (P/G): Gradient Amount (G). (Amount A changes each year)
• V4 (P/F): Salvage Value / Future Value (F).

Tool F: Annual Worth (AW) Master Tool

Use to flatten all money into equal yearly amounts.

• Menu: V1 + V2*(A/P) + V3*(A/F) + V4*(A/G)
• V1 [No Factor]: Base Annual Income/Expense (A).
• V2 (A/P): Initial Investment (P). (Usually negative)
• V3

Defining Information Technology (IT)

Information Technology (IT) means the collection, storage, processing, dissemination, and use of information. IT is not confined solely to hardware and software but also acknowledges the importance of the person, the goals he/she sets for the technology, the values employed in making these choices, and the assessment criteria used to determine whether he/she is controlling the technology and is being enriched by it.

Types of Information Systems

There are various types of information systems:

Transaction Processing Systems (TPS)

A Transaction Processing System (TPS) is used primarily for record keeping essential for conducting business operations within any organization. Examples of TPS include sales order entry,... Continue reading "Information Technology Systems and Their Business Applications" »

Sustainable Development Goals (SDGs)

Purpose of Sustainable Development

1. Reduce inequalities.
2. Caring for the environment.
3. Promote collaboration between social agents (productive agents).

Five Dimensions of the SDGs

The SDGs are "unique and special" in at least five dimensions:

1. All countries participate.
2. Target three dimensions: environmental, economic, and social.
3. All kinds of partners are involved.
4. Institutionally integrated.
5. More visible in public discourse.

Key Sustainability Metrics for Profitability

• Energy Efficiency and Cost Reduction
• Waste Reduction
• Water Efficiency
• Supply Chain Sustainability
• Brand Reputation
• Regulatory Compliance
• Productivity and Employee Engagement
• Innovation and New Product Development
• Carbon Footprint Reduction
• Return on Investment (ROI)

TDS and TCS: Tax Collection Mechanisms

TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) are methods within the Indian tax system designed to collect tax at the point of a transaction. This approach assists the government in maintaining a consistent revenue flow and minimizing tax evasion. The primary distinction lies in who collects the tax and the nature of the transaction involved.

Tax Deducted at Source (TDS)

With TDS, the payer deducts a specified percentage of tax before paying the recipient and deposits this amount with the government on the recipient's behalf. This deduction is treated as advance tax for the recipient, who can claim credit for it when filing their income tax return.

TDS applies to various income payments, such... Continue reading "Indian Tax Collection: TDS, TCS, and Income Tax Basics" »

Time Value of Money and Interest Formulas

Time Value of Money (TVM): Money received sooner is more valuable than money received later because of the returns you can earn by investing it.

Compound Interest Formulas

• Standard Compounding: FV = PV(1+k)ⁿ (Use if asked to compound for any period > 1 day).
• Continuous Compounding: FV = PV x e^{APR x t} (Use if compounding is continuous, < 1 day, where t = years).

In these formulas, k = APR/m and n = t x m. The Future Value Interest Factor is (1+k)ⁿ, while the Present Value factor is its inverse.

The Annual Percentage Rate (APR) is also known as the Quoted Rate or Nominal Interest Rate. It should not be used directly for TVM; it must be converted to an Effective Rate based on the compounding frequency... Continue reading "Financial Valuation Principles and Market Regulations" »

General Equilibrium and Welfare Economics

Efficiency and Equilibrium Concepts

• Pareto efficient: Any reallocation harms at least one person.
• Partial equilibrium analysis: One market in isolation.
• General equilibrium analysis: How equilibrium is determined in all markets simultaneously.
• Contract curve: The set of all Pareto-efficient bundles.
• First Welfare Theorem: The competitive equilibrium is efficient.
• Second Welfare Theorem: Any efficient allocation can be achieved by competition.

Mutually Beneficial Trades and Production

• Conditions for mutually beneficial trades:
  1. Utility maximization
  2. Usual-shaped indifference curves
  3. No interdependence
• Equilibrium conditions:
  1. Two indifference curves are tangent
  2. MRS_a = MRS_b
  3. No further mutually beneficial trade
  4. Allocation

OPRE 3310 Exam 1 Practice Questions

1) A supply chain with a distributor has more product handling than one without a distributor.

▢ True ▢ False

2) Lead time is a way to measure the availability of inventory.

▢ True ▢ False

3) Goods-producing organizations are not involved in service activities.

▢ True ▢ False

4) Service operations require additional inventory because of the unpredictability of consumer demand.

▢ True ▢ False

5) Prior to the Industrial Revolution, goods were produced primarily by craftsmen or their apprentices using custom-made parts.

▢ True ▢ False

6) Services can be stored and are not provided “on demand.”

▢ True ▢ False

7) Productivity is defined as the ratio of output to input.

▢ True ▢ False

8) As long... Continue reading "Operations Management and Supply Chain Exam Prep" »

Investing in Mutual Funds

The following patterns of investing can be seen in Mutual Funds:

Regular Plans vs. Direct Plans

As in any retail business, the Asset Management Company (AMC) also appoints distributors who act as intermediaries between the AMC and the retail investors. As an incentive to garner funds for their schemes, AMCs usually pay their mutual fund distributors a commission and reimburse distribution expenses.

Lumpsum vs. SIP vs. STP

If an investor has a consolidated amount—for example, a Diwali bonus or savings accumulated over a period of time—and now wants to invest in mutual funds in one go, such an investment is called a Lumpsum investment.

Over a 9-month period from January to September, an investor may invest a total of Rs.... Continue reading "Mutual Funds and Alternative Investment Strategies" »