Understanding Economics: Key Concepts and Variables
Definition of Economics
Economics is the study of how society decides what to produce, how to produce it, and for whom to produce it, given the scarcity of available resources.
It is the science that deals with the management of scarce resources to produce goods and services and distribute them for consumption among members of society.
Microeconomics
Microeconomics studies the economic behavior of individual elements within an economy, such as the price of a good, its demand, the supply of a particular
Read MoreFinancial Assets, Markets, and Securities: Key Concepts
Chapter 1
Real & Financial Assets: In aggregate for the entire economy, the sum of financial assets equals ZERO, and the sum of real assets equals WEALTH OF THE ECONOMY.
Debt Security: A security that pays a specified cash flow over a specified period.
Derivative Security: A security that provides a payoff that depends on the values of other assets.
Equity Security: A security that represents an ownership interest in a corporation.
Types of Financial Assets (Less Risky to More Risky):
- Six-month certificate
Accounting and Finance Key Concepts Review
Accounting and Finance Key Concepts
- Sole Proprietorship
- 110,000
- The individual assets invested by a partner in a partnership are jointly owned by all partners.
- Which of the following is not a characteristic of a partnership? Double taxation
- 49,200
- Which of the following statements is correct? The balance sheet of a partnership will show two or more capital accounts.
- Number of shares issued are 60,000.
- Vickers Company issues 4,000 shares of $5 par value common stock for $140,000. Paid-in Capital in Excess
Economics: Principles, Concepts, and Applications
Economics Summary
Week 1: Introduction to Economics
According to Michael Mandel, economics is the study of how individuals, businesses, and governments make decisions and tradeoffs in the face of scarce resources.
Today, the economy occupies significant space in newspapers and news, often making headlines due to the continuing crises that several countries experience. Companies that produce outputs (goods and services) have existed since ancient times.
The first economist, Adam Smith (considered the
Read MoreMarketing Promotion and Distribution Strategies
Marketing Promotion and Distribution
Promotion: The use of advertising, sales promotion, personal selling, direct mail, trade fairs, sponsorship, and public relations to inform consumers and persuade them to buy.
Promotion Mix
The promotion mix includes various strategies:
Advertising
- Persuasive Advertising: Tries to entice the customer to buy the product by informing them of the product’s benefits.
- Informative Advertising: Provides the customer with information. Mostly done by the government.
- Advertising
Supply and Demand: Basic Economic Concepts
Supply
Definitions:
- The amount of goods or services that producers are willing to offer at different prices and conditions at a certain time.
- The amount of products and services available for consumption.
Elasticity:
Elasticity is expressed graphically by means of the supply curve. The slope of this curve determines how the supply increases or decreases with a decrease or increase in the price of the property. This is the elasticity of the supply curve (Eo = Inc.Q / Q : Inc.P / P).
Direct Contact:
The
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