Notes, abstracts, papers, exams and problems of Economy

Compensation

Rewards earned by employees in return for their labor

Direct Financial Compensation

Consisting of pay received in the form of wages, salaries, bonuses, and commissions provided at regular and consistent intervals

Indirect Financial Compensation

Including all financial rewards that are not included in direct compensation and understood to form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education, and employee services

Equity Theory

States that a person’s motivation is in proportion to the perceived fairness of the rewards he or she receives for the amount of effort he or she exerts, and that this is also compared with what others receive. According to the theory, individuals

The Market

Producer and Consumer Markets

The market is the space where sellers and buyers meet to achieve their objectives. In consumer markets, the consumer buys the product for consumption. However, when products are sold for use in the production process, this is known as a producer market.

Market Segmentation, Targeting, and Positioning

Definition of Segmentation

Through market segmentation, companies divide large, heterogeneous markets into smaller segments that can be reached more efficiently and effectively.

Segmentation Methods

A market segment is a group with similar needs and wants. There are various ways in which a market may be segmented, including:

• Geographic Segmentation: This focuses on the impact of factors such as the location of customers

advertising does more harm than good.

Chapter 1 & Chapter 2

◦The production possibilities curve shows the maximum quantity of goods and services that can be produced when the existing resources are used fully and efficiently.

Chapter 3

Demand Curve/ Supply Curve

1. Movement along the curve (Change of Quantity Demanded/ Quantity Supplied): Price of this product (Demand Law / Supply Law)

• Demand is the amount of a product that people are willing and able to purchase at each possible price during a given period of time.
• The quantity demanded is the amount of a product that people are willing and able to purchase at one, specific price.

Law of Demand

As price of a good rises, consumers buy less. As price of a good falls, consumers buy more. Depicts the inverse quantity-price relationship... Continue reading "Understanding Demand and Supply in Economics" »

Question 2 Analysis

(a)(i) Calculating Average Cost

Total costs = €1300

No. of kilos = 130

Average cost per kilo = €1300/130 = €10

(a)(ii) Calculating Profit

Total Revenue (TR)= 130 x €30 = €3900

Total Cost (TC) = €1300

Profit (TP or P)= €3900 -€1300 = €2600

(a)(iii) Identifying Variable Costs

B Variable costs

(a)(iv) Explaining Variable Costs

Variable costs change as production changes. For example, more sugar is needed as more sweets are produced.

(a)(v) Calculating Fixed Costs

Fixed costs = rent + insurance = €500 + €50 = €550

(a)(vi) Explaining Fixed Costs

Variable costs vary with output, so when output is zero, no variable costs are incurred.

(a)(vii) Limitations to Firm Growth

Lack of finance is the most important limitation to... Continue reading "Cost Analysis, Market Structures, and Business Growth in the Confectionery Industry" »

Market Research: Primary and Secondary

What is market research?

Market research is the process of gathering, analyzing, and producing data relevant to the marketing process, such as the size of the market, key market trends, or characteristics of customers. Market research can identify the reasons for buying a product and customers’ wants. It provides a manager with information for effective decision-making. The objective of market research is to meet consumers’ needs more effectively.

Primary and Secondary Market Research

Primary market research gathers data for the first time for a specific purpose and is conducted face to face with customers. It can be tailored precisely to your own needs but can be expensive and time-consuming. Mistakes... Continue reading "Market Research: Primary, Secondary & Product Life Cycle" »

US Sugar Quotas: Impact on World Prices?

The United States uses quotas to limit sugar imports and protect its domestic producers. Since the US is a large consumer, reducing its imports decreases demand on the world market. This likely leads to a lower world price for sugar compared to a free trade scenario. Conversely, the domestic price within the US increases due to the restricted supply.

The 1933 US "Buy American" Act: Purpose and Impact?

The federal "Buy American" Act was passed in the United States in 1933, primarily during the Great Depression.

• Purpose: To stimulate the US economy by requiring government agencies to prioritize purchasing domestically produced goods.
• Impact:
  • Potential Benefits: Increased demand for American products, potentially

Types of Banks

Executive Summary

When you think of a bank, the first thing that comes to mind might be the place that holds your checking or savings account. But there are several different types of banks, all serving different types of needs. It is possible that many of the banks are not known, but each bank plays a very important role in the day to day. For example, Banking system is a group or network institutions that are responsible for operating a payment system, loans, deposits and helping with investments.

Introduction:

This report will look at:

• Commercial Banks
• Credit Unions
• Investment Banks
• Online Banks
• Offshore Banks

Findings:

1. At a Commercial Bank you can open a chequing or saving account apply for a car or home loan, transfer money or pay... Continue reading "Understanding the Different Types of Banks and Their Roles" »

PAYMENT SERVICES DIRECTIVE II

PSD1: 2007

This legislation provides the legal foundation for an EU single market for payments, to establish safer and more innovative payment services across the EU. It offered more competition between payment services and more choice for consumers. Approved by the EU in 2015 and European countries now have 2 years to put them into national laws.

Secure e-payments and expand the financial services ecosystem, covers most of the payment service providers, demands strong authentication, opens bank data to 3^rd parties, opens the value chain for new players: various roles can be ASPSP, PISP...

PSP requirements: Strong customer authentication: username, something you have, something you are.

Responsible for finding evidence... Continue reading "Directiva de Servicios de Pago II" »