Notes, abstracts, papers, exams and problems of Economy

In my particular case, I found it interesting to understand How in certain areas of the production of society, appears a phenomenon (due to The increasing returns on a scale) where the demand does not admit more than One company in the market without it being resent social welfare for the Increase in costs. Therefore a situation of natural monopoly is given.

On the scenario of our project, we see that we are an Electric company, (Company Victor SA), the structure of increasing returns to Scale allows us, to produce more, and be more productive, in addition, we will Attract more public, and the cost unit of the product will be less. Instead, in This scenario we will have to make a great initial investment, such as Infrastructure, this will be... Continue reading "Natural Monopoly and Pricing Strategies in the Spanish Electricity Market" »

How should the fixed income portfolio manager go about explaining the relationship between coupon rates and bond prices? Why do the coupon rates for the various bonds vary so much?

Before explaining the relationship between coupon rates and bond prices, we should understand what these concepts mean. A bond is a security or debt investment through a borrowing arrangement by which an investor loans money to an entity, which borrows the funds for a defined period of time at an interest rate. This interest rate, the regular return the investor who buys the bonds gets, is also called the coupon rate. Depending on the nature of these coupon rates, the expected return can vary because coupon rates are susceptible to fluctuations in interest rates.

The... Continue reading "Understanding the Relationship Between Coupon Rates and Bond Prices" »

Monopolistic Short Run:

Profit: If firms are making profits in the short run, new firms will be attracted to enter the market. Since there are no barriers to entry, they can do it easily. As they enter, they will take business away from existing firms, whose demand curve will start shifting to the left.

Losses: If firms are making losses, some firms in the industry will leave the market. The firms that remain will find that their demand curve starts shifting to the right as they pick up trade from the leaving firms.

Long Run: Firms will end up with normal profit. Each firm is exactly covering its costs, including opportunity costs, and so there is no incentive for firms to leave the industry. Firms outside the industry will not enter since they... Continue reading "Understanding Monopolistic and Oligopolistic Market Structures" »

The Law of Variable Proportions

The law of variable proportions states that as the quantity of one factor is increased, keeping the other factors fixed, the marginal product of that factor will eventually decline. This means that up to the use of a certain amount of variable factor, the marginal product of the factor may increase and after a certain stage, it starts diminishing. When the variable factor becomes relatively abundant, the marginal product may become negative.

Perfect Competition

Perfect competition is a market structure where a large number of buyers and sellers are present, and all are engaged in the buying and selling of homogeneous products at a single price prevailing in the market.

In other words, perfect competition, also referred... Continue reading "Economics Basics: Markets, Revenue, and Costs" »

Explain the differences and concerns with performance measures

Different types of Performance Measures. 2 types of measures:

• Objective Measures: quantitative and based on counts of behaviors or outcomes. Ex: number of students in a class, multiple choice exam.
• Subjective Measures: qualitative and based on judgments from raters.

Explain the value of using multiple sources for performance appraisal ratings

Common Problems with Performance Measures (1/2) Rater Errors. Rating errors occur when:

1. Raters provide assessments that follow an undesirable pattern.
2. The rater does not properly account for factors that might influence assessments.

A common error is central tendency error, which is the pattern of placing almost everyone in the middle of the scale.... Continue reading "Performance Measures, Appraisals, and Compensation Practices" »

The initial talks on reconstructing a postwar international monetary system started between the United States and United Kingdom as early as 1941. The lead negotiators were Harry Dexter White for the USA and John Maynard Keynes for the British. Given the US economic and political dominance at the end of the war, it is not surprising that the eventual system reflected more the US proposals. The system that emerged was ratified at an international monetary conference held at Bretton Woods, New Hampshire, attended by some 44 countries although some commentators dubbed the conference as a meeting of 1.5 nations (the USA and the UK!).

The Bretton Woods Agreement created three institutions. The World Bank dealt with structural and long-term development

Chapter 8: Individual Taxation

The Marriage Penalty occurs when a couple's tax liability is greater when filing married jointly than if both had filed under single status.

The Kiddie Tax applies to a child if:

1. They are ≤18 years old at year-end,
2. They are 18 at year-end but earned income ≤ half of their support, or
3. They are 18 ≤ age ≤ 24, a full-time student, and earned income ≤ half of their support.

If the Kiddie Tax applies, net unearned income (NUI) can be taxed at their parent's marginal tax rate. NUI is income in excess of $2,100.

Alternative Minimum Tax (AMT) is often caused by high capital gains, multiple children, and high state taxes. After multiplying the AMT base by the AMT rate, subtract the regular tax liability from this amount.... Continue reading "Tax Rules for Individuals and Businesses: Key Concepts" »

Institutional frameworks play a crucial role in facilitating international trade and investment in emerging economies. These economies have been experiencing above-average economic growth.

Political Risk

Political risk refers to the potential impact of political changes or instability in a country on an investment's returns.

Legal

Legal factors such as private property rights, freedom of contract, and economic liability are important considerations in business.

Economical

A predictable economic policy is essential for businesses operating in any country.

Motivation MYA

Strategic realignment, synergy, diversification into new markets, financial considerations, know-how, and human resources are some of the motivations behind business decisions.

Intranational

Targeting... Continue reading "Emerging Economies: Facilitating International Trade and Investment" »

Outsourcing

Outsourcing is a business practice in which a company hires another company or an individual to perform tasks, handle operations, or provide services that were either usually executed or previously done by the company's own employees.

Marketing Mix (MX)

Essential to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4 Ps make up a typical marketing mix: Price, Product, Promotion, and Place, including packaging, positioning, people, and even politics.

Raw Materials

Raw materials are materials or substances used in primary production or manufacturing.

Trade Union

A trade union is an organization whose membership consists of workers and union leaders, united to protect and promote their... Continue reading "Business Terminology Glossary" »

The appropriate measurement focus for the business-type activities of the

-Economic resources

Which of the following is not a proprietary fund?

- City Hall Capital Project Fund.

The appropriate basis of accounting for the proprietary funds of a governmental entity is

-Full accrual.

Which of the following is a valid reason for governmental entities to engage in business-type activities?

-The entity can provide the services more cheaply or efficiently than can a private firm

Which of the following is a valid argument for separate accounting principles for proprietary activities?

-The measurement focus on all economic resources is more consistent with the FASB's objectives that financial reporting should provide information to determine whether current-