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

C. Placement: Where to Distribute the Product

When a firm produces a narrow assortment of products in large quantities, intermediaries play a crucial role in matching supply and demand. They achieve this by purchasing large quantities from producers and breaking them down into a broader assortment of smaller quantities to meet consumer demand for variety and convenience.

Distribution Channel

A distribution channel is a network of interdependent organizations that collaborate to make a product or service accessible for use or consumption by consumers or businesses.

Functions of Channel Members:

1. Information: Gathering and distributing information about consumers, producers, and market forces to facilitate planning and exchange.
2. Promotion: Developing

Economic Expectations

Economic expectations are assumptions people make about the future. They guide individuals, businesses, and governments in their decision-making processes. Companies analyze their own situation, their competitors, and the economic climate to adapt their strategies. This includes investment and production decisions, which can shift the supply curve.

Industrial Structure

In developed countries, most people work in the tertiary sector (services), while manufacturing and agriculture are less prominent. This pattern differs in emerging and non-developed countries.

GDP and Economic Well-being

Gross Domestic Product (GDP)

GDP measures the total value of goods and services produced in an economy annually, indicating its size and evolution.... Continue reading "Economic Indicators and Global Development Trends" »

Fiscal Contract

= C+Output baj IS no camb cdo baja i Islm, baja Ms= sube i+no inicial en Y I spending dpnd en i. aument G=baja I Cambios Ms no afect price level short run LM comb i+Y mantien eq n financ mrk. Reduct consumr confidnc=left shift is curv I spending dpnd output= baja i Aggregate supply relation, current Plevel dpnd expectd pric level Fixed IS curve: baj i sube I CB=opn mkt purchase bonds=lm abajo Real supply=stock € medid n bns,no $ ISLM,baja G, baja gradual i+Y AS: baj output,baja unemployment,baja nominl wage,baja P. I no dpnd i =baja Ms no camb output CB compr bons y aument T y baja i Xpansionry: sube Pbons baja i Aument (c), ppcion € persns quiern en moned baja money multiplier Contract: bajn bons,sub i CB open market sale... Continue reading "Understanding Fiscal Contracts and Economic Impact" »

Defining The Problem:

1st step is defining the problem. Problem Definition involves discussion with decision makers, interviews with experts, analysis of secondary data. Once defined, research can be designed and conducted properly.

Developing an Approach to the Problem:

Formulating an Objective or Theoretical Framework, analytical models, research questions, and Hypotheses, and identifying the information needed.

Research Design Formulation:

The Blueprint for conducting the market research project, which details the procedures necessary to obtain required information. The purpose is to design a study that will test the hypotheses, determine possible answers to the research questions, and provide information needed for decision making. Addressing... Continue reading "Market Research Process and Errors: A Comprehensive Guide" »

• Elements: (installation, delivery, warranty, after sales) - (packaging, features, styling, quality, brand name) - (core benefit or service)
• Alternatives: selling as an international marketplace, modify for countries, design new products, global product
• Standardization: selling the same product worldwide
• Stan: scale production, product R&D, economize in marketing
• Adaptation: differing use conditions, government influences, consumer behavior, local competition, marketing concept
• Stan: universal brand, industrial goods, technology intensive
• Adaptation: regional characteristics, product, company considerations
• Tariff: trade barriers that restrict imports and exports through mechanisms other than the simple tariff, protect domestic
• Advantage: protectionism

Key Economic Indicators Explained

Gross Domestic Product (GDP)

GDP represents the market value of all officially recognized final goods and services produced within a country during a specific period.

GDP Per Capita

Calculated as GDP divided by the population (GDP/population), it serves as one indicator of a country's standard of living.

GDP as a Predictive Tool

GDP helps predict economic trends as it indicates a country's overall wealth.

Limitations of GDP

• Not all economic activities are included (e.g., informal market, illegal activities, housekeeping).
• A high GDP does not always equate to high societal welfare. Other indicators, like the Human Development Index (HDI), measure general social well-being.

Understanding the Labor Market

Unemployment

Unemployment... Continue reading "Key Economic Indicators, Banking, and Accounting Basics" »

1. Real GDP per Person

Define real GDP per person. At what rate did the U.S. real GDP per person grow from 1914-2014? –Real GDP per person is real GDP divided by the population. Real GDP per person tells us the value of goods and services that the average person can enjoy. Real GDP per person in the U.S. doubled between 1960 and 1987 and almost tripled between 1960 and 2013.

2. Factors Affecting Potential GDP

What are the two factors that make potential GDP grow? –Potential GDP, which is the maximum level of real GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurial ability that would bring rising inflation and fluctuations of real GDP.

3. Classical Growth Theory

What is classical growth theory? –A

Initial Reception

1. What happened to "How to Win Friends and Influence People" when it was published?

It was an overnight sensation, rapidly becoming a bestseller. Fifteen million copies have been sold since its first publication.

Authenticity in Interactions

2. What happens if you pretend to be sincere?

If you only give the impression of being sincere, other people won't believe you and will think you are false.

The Power of Communication Skills

3. What is more important than knowledge?

Communication skills are paramount. Three key pieces of advice are:

• Make people feel important.
• Avoid criticizing others.
• Understand why someone would want to do what you ask, and use that to motivate them.

The Pitfalls of Forced Positivity

4. What do most self-help books

Debt and Equity Financing

Debt financing: This is when you borrow money from a bank or a financial institution, such as through bonds.

Equity financing: This is when you offer a portion of your company, such as stocks, in exchange for capital. You don't have to pay the money back, but you give up a portion of ownership.

• Bonds: Less risky with lower returns. The return of your money plus interest is guaranteed. Bonds are issued by companies, governments, etc. They are fixed-income securities, with the issuer being the borrower.
• Stocks: More risky with potentially higher returns. However, you assume the risk of the company not being successful.

Equity

• Additional paid-in capital: Capital that shareholders have contributed to the company above the nominal