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

Fixed Costs

Fixed costs are the costs of production that a business has to pay regardless of how much it produces or sells. Fixed costs exist even if there is no output. These costs remain unchanged in the short run. They can change, but these changes happen independently from the level of output.

Scale of Operations

Scale of operations is the maximum output that can be achieved using the available resources. It can be increased in the long term.

Variable Costs

Variable costs are the costs of production that change in direct proportion to the level of output or sales. These include commission earned by staff, raw materials, packaging costs, etc. In theory, if there is no production, then variable costs equal zero.

Contribution

Contribution refers... Continue reading "Business Operations: Costs, Ventures, and Integration" »

Understanding Company Structure and Accounting Principles

A company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. An accounting cycle is a set of steps applied in the accounting of a company. The general ledger contains all the accounts for recording transactions relating to a company's assets, liabilities, owner's equity, revenues, and expenses.

Elements of a Company

• Merchant
• Worker
• Technology
• Provider

Principles and Ethics Code of an Accountant

Accountants must adhere to a strict code of ethics, including:

• Integrity: The accountant must be upright in all their acts. It is not allowed to make any act that could discredit their profession.
• Discretion:

Key Accounting Terms

• Entries: Journal analysis of the effects of a transaction on the accounts, usually accompanied by an explanation of the transaction.
• Ledger: Single accounts kept updated by posting. Each is recorded with one debit and one credit.
• Assets: Resources controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity.
• Liabilities: Obligations of the enterprise arising from past events, expected to result in an outflow from the enterprise of resources embodying economic benefits.
• Equity: What is left of the assets after liabilities are deducted. Capital or owner's interest, withdrawals.
• Expenses: Amounts that have been paid or will be paid for costs that have been incurred

CHAPTER 3

16) If the world terms of trade for a country are somewhere between the domestic cost ratio of H and that of F, then

B) country H and country F will both gain from trade.

17) If the world terms of trade equal those of country F, then

A) country H but not country F will gain from trade

18) If the world terms of trade equal those of country H, then

E) country F but not country H will gain from trade

CHAPTER 4

37) In the specific factors model, a 5% increase in the price of food accompanied by a 10% increase in the price of cloth will cause ________ in the welfare of labor, ________ in the welfare of the fixed factor in the production of food, and ________ in the welfare of the fixed factor in the production of cloth.
A) an ambiguous change;... Continue reading "International Trade and Specific Factors Model" »

Problemas en las plataformas online

Las plataformas pueden realizar cambios repentinos e inexplicables en los términos y condiciones para las empresas, redactados en un lenguaje claro e inteligible. No se informa claramente ni se da una razón para la terminación o suspensión de una cuenta, incluyendo el motivo por el cual una oferta puede ser eliminada. Deben proporcionar a los usuarios comerciales la razón de la suspensión de servicios. Las políticas sobre el acceso a los datos no están claras, deben formular y publicar políticas generales sobre cómo se puede acceder a los datos generados a través de sus servicios. Las reglas de clasificación no están claras, deben informar claramente a las empresas. Favorecimiento del propio servicio... Continue reading "Problemas en las plataformas online y casos de estudio" »

Address the least developed countries' special needs:

• Tariff- and quota-free access for their exports
• Enhanced debt relief for heavily indebted poor countries
• Cancellation of official bilateral debt

Address the special needs of landlocked and small island developing states.

Deal comprehensively with developing countries' debt problems.

Develop decent and productive work for youth.

In cooperation with pharmaceutical companies, provide access to affordable essential drugs in developing countries.

Activity: Global Public Good

i. Choosing one global public good. Argue why it should be considered as a global public good.

- Author defines global public good as a good, service, or resource that is available for all because it involves non-rivalry and non-excludability.... Continue reading "Developing a Global Partnership for Development: Addressing Special Needs and Debt Problems" »

troškovna primjena??

How to use implications of multiple output cost functions?

Economies of Scope and Cost Complementarity

Economies of scope

• total cost of producing both products together is less than the total cost of producing both products separately

Implications for managerial decision making: managers alert to the possibility of profitably extending the product line to exploit economies of scope: reasons for mergers and acquisitions, reasons for not disinvesting a product line

Cost complementarity

• exists when the marginal cost of producing one output is reduced when the output of another product is increased:

Example of specialized investment

An investment in a particular exchange that cannot be recovered in another trading relationship

• Eg. Spending

Enterprise Location

The location of a business is usually considered when the business is first setting up. We may come across two kinds of problems: location and dimension. First, we should research the market and see if our product has any demand or interest, and analyze the level of competition. Then, we should analyze raw materials’ supply, the job market, the cost of the land where the business will be located, transportation facilities, government influence and laws, facilities for investing and acquiring money, and finally, the region's economic development.

Enterprise Structures

Holding

The parent company buys the shares of the subsidiaries or branches, so the parent is the owner. The parent makes the most important decisions because,... Continue reading "Enterprise Structures: Location, Holding, and More" »

  The rise of finance capitalism affected an organisation of work, the development of consumerism, economic inability and the expansion of international trade.

THE ORGANISATION OF WORK

  The assembly line developed: each worker specialised in a task, such as placing a nut. Henry Ford was the first to use the assembly line in his car manufacturing company.

THE BIRTH OF THE CONSUMER SOCIETY

  The consumer society led to a new way of thinking; people began to value material wellbeing highly.

  *The upper class was the only social group that could afford luxury items.

  *The lower class had lower wages and couldn't afford luxury items.

Shake Well Before Using

Support: On paper

Application: Press the body

Storage: Mint; store after use

Organizational Structures

Hierarchy Levels

• Tall Vertical: Many levels
• Flat Horizontal: Few levels

Span of Control

• Narrow: Limited span
• Wider: Increased span

Decision Making

• Centralized: Decisions made at the top
• Decentralized: Decisions made at lower levels

Chains of Command

• Long: Multiple layers of authority
• Shorter: Fewer layers of authority

Leadership

• Autocratic: Authoritarian leadership style
• Democratic: Participative leadership style

Delegation

• Limited: Less delegation of authority
• Increased: More delegation of authority

Types of Organizational Structures

• Structure by Hierarchy: Senior, middle, junior management/supervisor-worker
• Structure by Function: Board of