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

1.Which Of the following is not a criterionfor Judging the result of an economic policy

b.Employment

2.Economicsis the study ofhow

a.Scarce Resources are used to satisfy unlimited wants

3.The Opportunity cost of choice X can be defined as

b.The Most highly valued alternative to choice X

4.Carlo Discovers when he studies for his macroeconomics tests at the bar, he earns Better grades. He advises all students to study at the bar for similar results. Carlo his guilty of committing

a.The Fallacy of composition

5.Households Are

a.Suppliers In the input market

6.The price of Good C increases and as a result, The demand for good D increases. The two goods are

b.Substitutes

7.Because The nation N is operatingat a point Inside its PPF, it

b.Has Unemployed or inefficiently

International Trade Policy Analysis

Impact of a 20% Tariff on Personal Computers

Given the following information, we will calculate the cost to consumers, the benefit to producers, the change in government revenue, and the deadweight costs of a proposed 20 percent tariff on personal computers.

Calculations for the 20% PC Tariff

With a 20% tariff, the price of personal computers increases from $2,000 to $2,400 (a $400 increase).

• Cost to Consumers (Loss in Consumer Surplus):
  The total loss in consumer surplus is the area of the trapezoid

Mercantilism (Dominant from The 16th to the 18th Century) - It's not efficient…Made a small group of people wealthy Emphasis on developing national power, building exports, getting bullion. Favored A large trade surplus, subsidizing big business, low wages.

Adam Smith - Is the "Father of Economics". Was a professor of Moral Philosophy in the Department of Logic. Made The Wealth of Nations in 1776. Describes the Building blocks of national economic wealth. Divisions of labor allows people To specialize Productivity rises up due to improvements in dexterity, ↓ use of Time, and lead to Interconnect Economy. Trade = another building block; leads People to act in their own self-interest. Argued FREE trade benefits all parties. NOT zero-sum "I... Continue reading "Economic Theories and Concepts: Mercantilism, Adam Smith, and More" »

Core Terminology for Merchandising Operations

Parties and Inventory Management

Retailer

A business that sells goods directly to the final user, the customer.

Wholesaler

A business that sells goods to retailers.

Merchandise

Goods purchased specifically to be resold to customers.

Inventory

The items of merchandise a business currently has in stock.

Sales Transactions and Revenue Recognition

Sales

A revenue account used to record the amount of merchandise sold.

Sales on Account

The sale of merchandise where payment will be received at a later date (a credit sale).

Charge Customer

A customer to whom a sale on account is made.

Credit Cards

A card issued by a business containing a customer’s name and account number that facilitates the sale on account.

Sales Slip

A

Government Economic Policies

1) Economic growth: the government will always want the economy to grow. They can encourage growth through helping private business to grow, through low business taxes or through government involvement in growth sectors such as new high tech industries.

2) Prices: the government will want to make sure that the general level of prices in the economy is effectively managed. Prices need to rise in a relatively slow and predictable way so that future contracts can be made where both sides know the value of what they pay or receive. Government policies to control inflation might include reducing spending or raising taxes when prices start to rise.

3) Income distribution: all economies are characterized by inequalities in... Continue reading "Government Economic Policies and Financial Instruments" »

Capital Adequacy Requirements

(A) To improve the capital adequacy requirements, Basel III provides a minimum capital requirement for Core Tier 1 capital adequacy ratios and a general capital adequacy ratio. It introduces capital retention capital, enhancing the bank's ability to absorb losses during a recession, and establishes countercyclical excess capital linked to excessive credit growth intervals. Large banks must provide additional capital requirements to reduce the moral hazard of being "too big to fail."

Strict Capital Deduction Limits

(B) For minority gains, goodwill, deferred tax assets, and non-consolidated investments in common equity of financial institutions, capital requirements have changed. This includes unrealized gains on debt... Continue reading "Basel III Capital and Liquidity Standards" »

China's Carbon Footprint: Challenges and Progress

Every nation faces unique challenges and opportunities in mitigating its emissions. China, as the world's largest emitter of carbon dioxide and a significant player in the global economy, serves as a compelling example.

Understanding China's Carbon Footprint

China's rapid economic growth and industrialization have led to a substantial carbon footprint. The country's high energy demands, primarily met by fossil fuels, have resulted in significant emissions. Additionally, with its vast population, the demand for consumer goods continues to rise, further contributing to its environmental impact.

China's Commitment to Renewable Energy

Despite these challenges, China has made considerable efforts to address... Continue reading "China's Carbon Footprint: Challenges and Renewable Energy Progress" »

1. Introduction: The European Union

Important dates: 7 enlargements:
- UK, Ireland, Denmark (1973)
- Greece (1981)
- Portugal and Spain (1986)
- Finland, Sweden, Austria (1995)
- 10 countries (2004)
- Bulgaria and Romania (2007)
- Croatia (2013)

7 treaties:
1. Treaty of Paris (1950): European Coal and Steel Community
2. Treaty of Rome (1957): EURATOM, EEC, ECSC.
3. Treaty of the European Single Act (1986): the Single Market.
4. Treaty of Maastricht (1991): the Treaty of the EU.
5. Treaty of Amsterdam (1996)
6. Treaty of Nice (2001)
7. Treaty of Lisbon (2009)

1 downsizing: Brexit (2019-?)

Aspects of the European Integration Model - Mechanisms:
- Single market.
- Customs Union.
- Single currency.
- European institutions.
- Interterritorial cohesion policies.
- Common... Continue reading "Understanding the European Union and Its Monetary Union" »

Dimensions of Information Systems

Describe the organizational, management, and technology dimensions of information systems.

• Organization: Such as the organization’s hierarchy, functional specialties, business processes, culture, and political interest groups.
• Management: Involves setting organizational strategies, allocating human and financial resources, creating new products and services, and re-creating the organization if necessary.
• Technology: Involves computer hardware, software, data management technology, and telecommunications technology.

Impact of Information Systems on Business

Describe how information systems have changed the way businesses operate and their products and services.

Wireless communications, including computers and mobiles,... Continue reading "Dimensions of Information Systems and Business Operations" »