...A. Throughout American history there have been periods of financial boom and bust, economic growth and recession. The most recent recession from the third quarter 2007 to the second quarter 2009 seemed like an extraordinary period of recession. The S&P 500 shrank from about 1300 points to 666 points (50%), evaporating capital in a matter of days. However, this recessionary period was quickly turned around to economic growth again. The average post-World War II length of economic contraction has been 11.1 months, whereas the 2007 recession had a 1.62 times longer contraction period: 18 months. Similarly, expansion periods have lasted 58.4 months post-WWII, compared to the 2008 expansionary period that lasted a whopping 73 months; this data supports a 1.25 times as long period of time to recover from the most recent recession. When comparing data from pre-WWII to recent years, it appears that recovery from recessions have trended towards a longer recovery time in more recent contraction periods. B. 1. g of Y= (12,701.00/13,326.00) (4/7) -1= -2.71% change in Y 2. g of E= (140,317.00/146,271.33) (4/7) -1= -2.35% change in E 3. g of u= (9.27%- 4.80%) = 4.47% increase in u 4. In comparison with the recession of 1973-1975, the recent recession was worse in magnitude. Real GDP levels decreased about 1.2 times (annually) more than that of the 1973-1975 recession. The decrease in employment was much more significant on the 2007-2009 recession than that of the past recession. A...
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...Τόμος ΙV, Τεύχος 8, ∆εκέμβριος 2009 ∆ιεύθυνση Οικονομικών Μελετών & Προβλέψεων Η κρίση του 2007-2009: τα αίτια, η αντιμετώπιση και οι προοπτικές Πρόλογος Τρύφων Κολλίντζας Καθηγητής Οικονομικού Πανεπιστημίου Αθηνών & Πρόεδρος & ∆ιευθύνων Σύμβουλος Attica Bank Μιχάλης Ψαλιδόπουλος Καθηγητής Πανεπιστημίου Αθηνών Νικόλαος Καραμούζης Καθηγητής Πανεπιστημίου Πειραιώς & Αναπληρωτής ∆ιευθύνων Σύμβουλος Eurobank EFG Γκίκας Χαρδούβελης Καθηγητής Πανεπιστημίου Πειραιώς, Chief Economist & Director of Research ghardouvelis@eurobank.gr Research@eurobank.gr Η διεθνής αλλά και η ελληνική οικονομία βρίσκονται σήμερα αντιμέτωπες με τη μεγαλύτερη ύφεση μετά το τέλος του Β’ Παγκοσμίου Πολέμου. Η χρηματοοικονομική κρίση, που ξεκίνησε στην αγορά στεγαστικών δανείων χαμηλής εξασφάλισης (subprime mortgages) των ΗΠΑ το καλοκαίρι του 2007 μετατράπηκε ραγδαία σε κρίση του παγκόσμιου χρηματοπιστωτικού συστήματος και μεταφέρθηκε στην πραγματική οικονομία με ταχύ ρυθμό. Μια σειρά από γεγονότα, που μέχρι πριν από τρία χρόνια φάνταζαν απίθανο να συμβούν, οδήγησαν τους παγκόσμιους ρυθμούς ανάπτυξης σε απότομη πτώση και εκτόξευσαν την ανεργία και την ανασφάλεια στο σύνολο σχεδόν των χωρών. Καθώς η κρίση εκτυλίσσονταν, η ένταση και η έκτασή της αύξαναν συνεχώς, αναγκάζοντας κυβερνήσεις, κεντρικές τράπεζες, αναλυτές, επενδυτές, επιχειρηματίες και καταναλωτές να αναθεωρούν συνεχώς τις αντιλήψεις τους και τις προσδοκίες τους. Στην προσπάθεια άμεσης αντιμετώπισης...
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...MBA 507: Managerial Finance Lecture 7 Cost-‐Volume-‐Profit Analysis & Managerial Decision Making Mario Fonseka FCMA(UK), CGMA (US), Dip. M (UK), FCMA(SL), MBA (USJ), CerGfied Psychometrician (BPS) Saturday, September 20, 14 Cost-Volume-Profit Analysis Saturday, September 20, 14 Cost-Volume-Profit Analysis CVP Analysis is based on the relationship between sales revenue, costs and profit in the short run, in which the output of a firm is restricted to that available from the current operating capacity Saturday, September 20, 14 Break even Chart Saturday, September 20, 14 Break even Chart Costs & Revenue (Rs.) 0 Volume (Units) Saturday, September 20, 14 Break even Chart Costs & Revenue (Rs.) Fixed Cost 0 Volume (Units) Saturday, September 20, 14 Break even Chart Costs & Revenue (Rs.) Total Costs Fixed Cost 0 Volume (Units) Saturday, September 20, 14 Break even Chart Costs & Revenue (Rs.) Total Costs Variable Cost Fixed Cost 0 Volume (Units) Saturday, September 20, 14 Break even Chart Costs & Revenue (Rs.) Total Revenue Total Costs Variable Cost Fixed Cost 0 Volume (Units) Saturday, September 20, 14 Break even Chart Costs & Revenue (Rs.) Total Revenue Total Costs Break Even Point Variable Cost Fixed Cost 0 Volume (Units) Saturday, September 20, 14 ...
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...Q1. Market failure occurs when resources are not allocated in the most efficient way to achieve highest possible social welfare. In a free market society certain goods and services would not be provided by the private sector as they would not be profitable enough for the companies producing them. As a result, society as a whole would suffer. The government steps in to provide the goods and services required by society that private firms will not provide. These public goods include street lighting, emergency services and public spaces eg parks. These services are paid for by the government which collects the funds through taxation. Merit goods are also funded or subsidised by the government. These are goods or services which people would generally not choose to pay for or think to save for which the government thinks are important ie education, libraries, NHS medical treatment. In the UK every child has the right to an education but many households would not be in a position to pay for it. Likewise, before all prescriptions were free in Scotland, there were still some who qualified for free prescription which were funded by the government ie low income households including those in receipt of certain benefits, elderly people of pension age, and children under the age of 16 or 16 and 17 year olds who were still in education. The presence of externalities can contribute to market failure where the actions of a firm leads to a greater social cost ie the presence of lead in car...
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...Environmental Market Failure Negative Externalities Costs imposed on a 3rd party not involved with the consumption or production of the good (the external cost) Divergence between private and social cost MSC=MPC+MEC The MEC = the negative externality The free market price is less than the optimum price leading to over consumption Welfare loss Q: The market generated quantity (where privates crosses private) Q1: The optimum quantity (where social crosses social) Over consumption of Q-Q1 Unequal Distribution Effects Citizens in poor countries are more likely to be affected by the consequences of global warming that those in rich countries E.g. drought/flooding They are also a lot less likely to have consumed the goods and services which caused the global warming And a loss less able to protect them selves e.g. through insurance policies There are inequities between those who contribute to global warming and those who suffer from it Citizens of developed (polluting) countries pay less for their goods and services than the social costs of their production MSC=MPC+MEC Government Intervention to correct Environmental Market Failure 2 main types: Market based measures Designed to modify the price mechanism using strategies such as taxes and subsidies Government regulation Sometimes referred to as “Command and Control”, designed to create incentives for firms to reduce harmful...
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...A2 Economics 1. Explain why a monopoly has a downward facing marginal revenue curve and a firm in a perfect market has a horizontal marginal revenue curve. Monopolies are firms with a majority share in the market. Monopoly firms set the price because there is less competition and high barriers to entry/exit because of the high start up costs into the industry. So the demand curve is downward sloping because they set the price so to attract more demand they can lower the price. In a perfect market the demand is perfectly inelastic because consumers have perfect information meaning that if a firm increases the price, demand will go down due to lots of competitors and low barriers to entry, so firms in a perfect market are price takers. 2. Explain why prices in oligopolies remain fixed in the long term. An oligopoly is where a few large firms have a majority of the market share. Prices in oligopolies remain fixed in the long term because if a firm lowers in the price, all companies will follow because demand is price elastic. Thus meaning that revenue will go down for each company. So due to price collusion the businesses each agree on a fixed price and instead compete with non financial methods instead, to prevent losses of the revenue. 3. Explain why a monopoly can achieve supernormal profits and a firm in a perfect market can only achieve normal profits. Monopolies are firms with a majority share in the market, usually 25% or more. They can achieve...
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...Article 1. ECONOMIC AND FINANCIAL MARKET OUTLOOK (June 2012) No replay of 2011 in the cards for Canadian and US economies Part 1. Summary of the Article First article that I chose is the outlook for advanced economic and financial market particularly US, European union, Canadian and Chinese market that are strongly influence to the world market. Source of the Information and analysis are IMF World Economic outlook and RBC Economic research for year 2012 and forecast for year 2013. This paper includes several economic issues such us economic recession and growth, risk, Labour market and Inflation additionally monetary policies for central banks. Researcher and forecasters compared those issues for different countries and they aim to differentiate and discuss for each of the countries and market situation. Overall, the world economy faces significant challenges in the recent years and is expected to grow by 3.5% this year. Authors stated some significant issues and problems and explained them in detail. For example, paper includes several subtitles about European risk and recession situation, Finding the right policy for Europe, China is in slow growth stage, Canada and US economic situation and factors that impacted in positive and negative ways on the economy, Labour market volatility, Housing market, Households income and debt status, Consumer spending shift, Businesses that are supporting market, Canada’s dollar appreciation, Fed and other central bank policy,...
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...The Study The financial system is created to move funds from surplus economic units to deficit economic units in order to produce goods and services and to make investment in new equipment and facilities so as to facilitate the growth of the economy and improve the standard of living of its citizens. It is generally recognized that financial system plays a catalytic role in the process of economic development. The financial system of any nation is a function of the size of its economy. A growing economy places more responsibilities on the financial sector to mobilize the needed capital to facilitate production, generate employment and income. An economy that does not experience growth on sustained basis is likely to have a very passive financial sector as there are no incentives for investment. Through the process of growth, financial system offers a wide range of portfolio options for savers and issuable instruments for investors, a function often referred to as financial intermediation (Oke, 2000). The Nigerian financial system comprises of various institutions, markets and operations that are in the business of providing financial services. These institutions can be broadly categorized into money and capital markets. While money market is a market in which short term financial instruments are traded, the capital market on the other hand deals with long term transactions. The major players in the money market are the banks and discount houses. The intermediation role of banks...
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...Stock Market Development & Economic Growth in Bangladesh –Rabita Sabah Abstract This paper examines the state of relationship between the stock market development & economic growth in Bangladesh. As a third world country, the economic development of Bangladesh is still dependent on the ups & downs of some macroeconomic as well as capital market factors , like, GDP, real GDP, GDP growth, market capitalization, volatility of stocks, Financial Statement information and other financial factors. This paper has been prepared & presented to have a clear view about contribution of capital market to the economic growth of Bangladesh. So far I know, no analytical study regarding this issue still has not been conducted in Bangladesh. So that I’ve desired to study on this topic in a deeper detail to focus on the relationship of capital market & economic growth from both economic & accounting point of view. I also have focused on how the reporting of the Financial Statements of different institutions according to various local & international standards can have an impact in accelerating the economic advancement in Bangladesh. In assessing the impact of stock market on our country’s economy, I have used some statistical techniques & finance issues as correlation & regression analysis, measurement of cost of capital, index method etc based on the data obtained from the main stock exchange of the country DSE. The study reveals that there is a very close & positive relationship of stock...
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...In week four, the innovative firm, Quasar, is introduced in the market structures simulation. Quasar is leading the way in the computer industry with the design and manufacturing of an all optical notebook computer. Through the market structures simulation, examples on how decision-making differ among the market structures of monopoly, oligopoly, monopolistic competition, and perfect competition. This simulation and the real-life scenarios detailed within, provide insight and understanding to the intricate decisions that are made in each type of market structure and the impact of those decisions. In the Quasar simulation, the C.E.O. utilized pricing as tool for optimizing profits, and with the input from the board of advisors decided to allocate funds to advertising, technology, and other ventures. (University of Phoenix, 2008) Through the course of this paper, a solution will be created using strategic variables, in order to sustain the economic profits that the firm can earn. This paper will also look to identify pricing and non-pricing strategies that will further facilitate the goal of maintaining economic profits. Finally, this paper will ascertain what kind of innovations will best prolong Quasar’s distinctiveness. In 2003, Quasar launched the world’s first all optical notebook computer branded Neutron. Because of Neutron’s processor, memory use and high-speed optical conductors, Neutron boasts approximately 5 times the speed of existing microchip-based computers. Neutron...
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...কম্পিউটার দ্রুত গতির করার কিছু টিপস তারিখ: ০২-০৮-২০১২ কন্ট্রোল প্যানেলে যান। Add or Remove-এ দুই ক্লিক করুন। Add/Remove windows components-এ ক্লিক করুন। নতুন যে উইন্ডো আসবে সেটির বাম পাশ থেকে অদরকারি প্রোগ্রামগুলোর পাশের টিক চিহ্ন তুলে দিন। তারপর Accessories and Utilities নির্বাচন করে Details-এ ক্লিক করুন। নতুন যে উইন্ডো আসবে সেটি থেকে যে প্রোগ্রামগুলো আপনার কাজে লাগে না সেগুলোর টিক চিহ্ন তুলে দিয়ে OK করুন। এখন next-এ ক্লিক করুন। Successful meassage আসলে Finish-এ ক্লিক করুন। কম্পিউটারের র্যা ম কম থাকলে কম্পিউটার ধীর গতির হয়ে যায়। ভার্চুয়াল মেমোরি বাড়িয়ে কম্পিউটার গতি কিছুটা বাড়ানো যায়। ভার্চুয়াল মেমোরি বাড়ানোর জন্য প্রথমে My computer-এ মাউস রেখে ডান বাটনে ক্লিক করে properties-এ যান। এখন Advance-এ ক্লিক করে performance এর settings-এ ক্লিক করুন। আবার Advance-এ ক্লিক করুন। এখন change-এ ক্লিক করে নতুন উইন্ডো এলে সেটির Initial size ও Maximum size-এ আপনার ইচ্ছামত size লিখে set-এ ক্লিক করে ok দিয়ে বেরিয়ে আসুন। তবে Initial size-এ আপনার কম্পিউটারের র্যা মের size-এর দ্বিগুন এবং Maximum size-এ র্যা মের size-এর চারগুন দিলে ভাল হয়। Ctrl + Alt + Delete চেপে বা টাস্কবারে মাউস রেখে ডান বাটনে ক্লিক করে Task Manager খুলুন।তারপর Processes-এ ক্লিক করুন। অনেকগুলো প্রোগ্রাম-এর তালিকা দেখতে পাবেন। এর মধ্যে বর্তমানে যে প্রোগ্রামগুলো কাজে লাগছে না সেগুলো নির্বাচন করে End Process-এ ক্লিক করে বন্ধ করে দেন। যদি ভুল করে কোনো প্রোগ্রাম বন্ধ করে দেন এবং এতে যদি অপারেটিং সিস্টেম এর কোন সমস্যা হয় তাহলে কম্পিউটার রিস্টার্ট করুন। কিছু সময় পরপর Start থেকে Run-এ ক্লিক করে tree লিখে ok করুন।...
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...the state of relationship between the stock market development & economic growth in Bangladesh. As a third world country, the economic development of Bangladesh is still dependent on the ups & downs of some macroeconomic as well as capital market factors , like, GDP, real GDP, GDP growth, market capitalization, volatility of stocks, Financial Statement information and other financial factors. This paper has been prepared & presented to have a clear view about contribution of capital market to the economic growth of Bangladesh. So far I know, no analytical study regarding this issue still has not been conducted in Bangladesh. So that I’ve desired to study on this topic in a deeper detail to focus on the relationship of capital market & economic growth from both economic & accounting point of view. I also have focused on how the reporting of the Financial Statements of different institutions according to various local & international standards can have an impact in accelerating the economic advancement in Bangladesh. In assessing the impact of stock market on our country’s economy, I have used some statistical techniques & finance issues as correlation & regression analysis, measurement of cost of capital, index method etc based on the data obtained from the main stock exchange of the country DSE. The study reveals that there is a very close & positive relationship of stock market development of Bangladesh with this country’s economic growth. And also another result of this study...
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...Prospects Of Market Volumes And Shares Economics Essay Nanotechnology qualifies for having a major impact on the world economy, because nanotechnological applications will be used in virtually all sectors. Scientists, researchers, managers, investors and policy makers worldwide acknowledge this huge potential and have started the nano-race. Prospects of Market Volumes and Shares The NSF [1] estimated a world market for nanotechnological products of $1 trillion for 2015. Depending on the definition of nanotechnology and its contribution to added value of the final products as well as the degree of optimism, many other forecasts vary between moderate $150 bn in 2010 [2] and $2.6 trillion in 2014 [3] . The latter, most optimistic scenario would imply that the market for nanotechnology-based products would be larger than the prospected information and communication technology market and would exceed the future biotech market by ten times. The forecasts differ significantly from each other, but have common thread in that they predict a substantial increase of the market for nanotechnological products with a take off some when in the early 2010s. The figures presented above show the possible direction, but are not adequate for deeper analyses of the development of the nanotechnology market. Lux Research and the NSF have both spent some efforts in breaking the figures down in nanotechnology subfields, the first in an analysis of 5 years in the past (1999-2003), the NSF shows the expected...
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...1.1 Introduction Australia’s known to produce the best wool in the world; hence it has dominance in the worlds market of Merino wool of 50% and greasy wool of 27% as of June 2001 (ABS, 2007). In the early 1970’s to stabilise the declining price of wool, the Australian Wool Council (AWC) implemented a minimum price floor scheme to protect the Australian wool producers. The price floor for wool began in 1974 and ended in 1991 as “there was no plan to cope with the sharp reversal in the supply-demand situation.” (Clancy, The reason wool was knocked to the floor, 2011). 1.2 Price floor Price floor refers to the minimum price level in which a commodity can be sold in the market (Hubbard, Garnet, Lewis, & O'brien, 2010). It is usually illegal to sell the commodity below the stipulated price. This is a price that is higher than the equilibrium price that the market is prepared to pay for that commodity (Taylor, 2006). In the 1990s the Australian government imposed a price floor in the wool market with the view of protecting sheep farmers and providing them the assurance that they would not be affected by the price fluctuations in the global wool market. The move was aimed at facilitating growth in the industry, creating jobs and improving the standard of living of Australian farmers. In addition, the price floor prevented market from getting into price competition (Bardsley, 1994) Following diagram (Figure 1) shows the demand curve of a commodity that has price floor. Price of...
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...Ten Principles of Economics and How Markets Work 365/ECO July 18, 2016 University of Phoenix Ten Principles of Economics and How Markets Work Economics is the study of how society manages its resources, and how they are allocated (Mankiw, 2015). People must understand how the markets, trade, and government can affect items like inflation, investing, and their standard of living. Frequently, the government will interfere with the natural flow of the supply and demand curve creating ripples in the economy that will take years to readjust to normalcy. Resources, interdependence and the supply and demand curve People and governments must decide what to spend money on, and that decision always comes with a tradeoff (Mankiw, 2015). The text notes that one trade off is between efficiency and equality. Efficiency is getting the most it can from the scarce resources and equality is ensuring the resources are distributed among all members of the society. Where one person may choose to pay more for a home, another person may choose a lesser home to have the ability to travel more. When government gets involved the tradeoffs are the goals of efficiency and equality often find conflict. Countries and governments are becoming increasingly interdependent, and it has tradeoffs (Mankiw, 2015). Interdependence allows for all areas of the world to maintain a standard of living, produce goods, and trade with other communities around the world. When all...
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