...Sleep debt In students’ life, it is common to stay awake all night to study or to write a paper. Students themselves consider this as pressed by competing schedules. Actually, students who have to spend their time cramming for an exam are a result of Boomerang. They spend their time which supposed to study by playing computer games, dazing, or just browsing the internet. They mistakenly believe that by ignoring the need to sleep could eventually make up the time they have wasted previously, as result; they could do well on the exam next day. It is understandable to think in that way. Because students do make an effort to achieve their goal, which is a higher grade they desire. After preparing for 24 hours staying awake, students went to the classroom confidently. They believe that their efforts would pay back. However, the result could be unbelievable. There was once a research done by participants from 44 college students. It turns out that sleep-deprived participants performed significantly worse than the no deprived participants on the cognitive task. However, the sleep-deprived participants rated their concentration and effort higher than the nondeprived participants did (June, Amy 512). This was exactly the same as what students who spend their whole night preparing an exam think. They believe they put more effort compared to students who sleep well before the exam day. It indicates that college students are not aware of the extent, to which sleep deprivation negatively...
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...following: 1. How is the government purchases multiplier calculated? (Review) How is the taxation multiplier calculated? Why is it lower than the government purchases multiplier? How is the transfers multiplier calculated? 2. Given some gaps and marginal propensities to consume, calculate how much government purchases, taxes, or transfers should be changed. 3. Explain why an equal increase (decrease) in government purchases and net taxes (taxes minus transfers) has an expansionary (contractionary) effect. 4. What is the balanced budget multiplier? 5. Explain why discretionary fiscal policy has not been very effective in reducing recessions in the United States. 6. What are the “time lags”? 7. What is meant by "automatic stabilization"? What are the main automatic stabilizers? 8. What is meant by "official budget deficit"? by "structural deficit"? Why is the structural budget deficit a better measure of the intent of fiscal policy? 9. What does it mean that "fiscal policy is expansionary (or contractionary)"? How does one determine whether fiscal policy is expansionary or contractionary? 10. In what ways might budget deficits be bad for an economy? In what ways might they be good for an economy? 11. What is meant by “crowding-out”? 12. Explain the relation between the budget deficits and the trade deficits. 13. What is meant by the "national debt"? What is the difference...
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...above Money, according to our definition, A. has to be backed by something valuable, such as gold or silver. B. does not have to be generally accepted in payment of obligations. C. can include credit. D. has to be issued by government. E. none of the above. Money, according to our definition, A. need not be in common use. B. is generally accepted to pay debt. C. has to be issued by government. D. does not need to be useful to pay off obligations. E. needs to be backed up by gold. Which of the following has (have) functioned as money? A. gold B. tobacco C. rocks Money has to be based on, backed by, or redeemable in A. tobacco B. gold C. silver E. none of these D. cattle D. stocks E. all of these 12.2 12.3 12.4 12.5 12.6 Which of the following is not a function of money A. Unit of Account B. Medium of Exchange (Means of Payment) C. Store of Value D. Provider of Peace and Security E. Standard of Deferred Payments Which characteristics would not be especially important or practical for the thing used as money? A. Stable Value B. Portability C. Durability D. Divisibility E. Squiggly Lines and Pictures of Dead People M1 money in our society includes A vault cash of commercial banks B. cash held by private citizens C. deposits of commercial banks in the Federal Reserve Bank D. saving account deposits of private citizens and businesses in banking institutions E. U.S. Government bonds 12.7 12.8...
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...Chapter 5: 5 Tips: Protecting your checking account The article provided five tips on how to protect your checking account from unauthorized use. The first tip is to don’t give your account number and bank routing information to anyone you don’t know. In this tip, you should not give your account information to a company you are not familiar with or if you have not initiated the transaction. Many times criminals will contact you and pretend to be a sales person to sell you a product or service. They convince you to purchase their product or service, and you provide your information. You will then be out of the product you thought you were purchasing and also they will have your account information where they can then withdraw money, make transactions, or if they received enough information they could even steal your identity. Tip number two is Review your monthly statement. By reviewing your monthly statement you can ensure that all of the transactions that are being debited or credited on your account are actually yours. Banks do have fraud detection departments to look for anything that is unusual or typical fraudulent activity. But the only person that can truly say if a transaction is authorized or unauthorized is the customer. Tip number three is Notify your bank about any problems as soon as possible. The soon you notify your bank about a missing / stolen card or checks or of fraudulent activity on your account, the sooner you can have your funds returned...
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...will then lead to higher price of exports and resulting in lower demand of exports. Thus export receipts fall. At the same time, the price of import goods and services will become expensive. This will lead to lower price of imports and resulting in higher demand of imports. Thus import payments increase. As a result, this will worsen the balance of payment and contribute to the current account deficit. This is the case when price elasticity of demand of the goods and services is elastic. This is because a small increase in price will lead to a larger fall in quantity demanded and larger fall in total revenue. In addition, if the appreciation is in a long run, foreign countries will switch to buy from other countries or find substitutes rather than buying from our country. AS a result, our demand for exports will fall and resulting in lower export receipts. Besides that, when a currency appreciates, investments from foreign to our country will fall. This is because it is more expensive to invest in our country. As a result, lesser investment will lead to lesser inflow of money and lower production in the economy. When production falls, number of workers needed decrease as well and this lead to an increase in unemployment in the country. As a result, higher unemployment leads to lower income and hence lower standard of living. On the other hand, when a currency appreciates, people from the country will tend to switch to cheaper imported goods and services. In this case, domestic firms...
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...Matt Gibson Professor Moore The Effects Of Deleveraging An attempt to decrease the company’s leverage is widely known as deleveraging. If a company pays off any existing debt on its balance sheet, so it is considered as the best way for it to deleverage its sheet and become more liquid. The company may be facing a significant risk of defaults if it fails to pay off its existing debts. Deleveraging can be done both on micro-economic and macro-economic levels. At micro-economic level, decreasing the leverage ratio is known as deleveraging, of a single firm or single economic entity. Moreover, deleveraging on macro-economic level is when there is a reduction in debt levels in private and public sectors. Hence, this leads to a decline in the debt to the GDP ratio in the national account. There are several macro-economic consequences of deleveraging in an economy followed by severe recessions and financial crisis. According to some studies, deleveraging is considered as the main economic trend for the coming years. However, in contradiction to this, a lot of researchers show that this economic term can prove to be unhelpful. The most important step to reduce the assets to equity ratio is to reduce the amount of debt held by a company, government or household. This is the first way of cutting leverage. It is important to understand that assets must be reduced as well if the books need to be balanced; hence, not necessarily do assets support some kind of real economic activity...
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...may reduce taxes to try to stimulate the little traffic—about 4,000 cars a day. By economy or raise taxes when they believe comparison, America’s longest suspension that aggregate demand is too high. bridge, the Verrazano Bridge that links New In this chapter, we will learn how discre- York City’s Staten Island to the borough of tionary fiscal policy fits into the model of Brooklyn, carries more than 300,000 cars short-run fluctuations we developed in each day. Chapter 10. We’ll see how deliberate In Japan, stories like this are common. During the 1990s the Japanese government What you will learn in this chapter: changes in government spending and tax policy affect real GDP. We’ll also see how ® What fiscal policy is and why it is an important tool in managing economic fluctuations ® Which policies constitute an expansionary fiscal policy and which constitute a contractionary fiscal policy ® Why fiscal policy has a multiplier effect and how this effect is influenced by automatic stabilizers ® How to measure the government budget balance and how it is affected by economic fluctuations ® Why a large public debt may be a cause for concern ® Why implicit liabilities of the government are also a cause for concern spent around $1.4 trillion on...
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...HOW THE GLOBAL DEBT CRISIS COULD AFECT YOU Reasons for selecting the article The reasons for choosing the article are that firstly, it stated that aggregates for economic consequences, GDP, recession and unemployment have greatly affected Singapore economy. The article also focused on the nation behaviour of the declining economy for US and Greece due to finance crisis which in turn affect other nations, in this case, Singapore. In fact, the article briefly explained how aggregates like national income and output have affected US and Greece economy, which in turn affected Singapore. It will be further discussed whether this mentioned global crisis will affect Singapore inflation, causing a rise in unemployment rate and the slowing of GDP growth for emerging markets. Summary of the article The article comments on how two of Singapore’s trading partners, mainly US and Greece, are hurting themselves with their debt problems and the impact of their problems on Singapore economy. It briefly describes what US debt ceiling is and the heavy borrowing of Greek government which has greatly contributed to the global debt crisis. It also explains on US debt problem and other aftershocks if the debt ceiling is not rise. Moreover, it explains the debts that Greece had incurred and what will happen if Greece defaults on its debts. Lastly, it further highlighted that the Singapore economy is affected by the two countries’ debt problems. Identify and discuss on the economics...
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...Negative Impact of Economic Recession By Tejvan Pettinger on September 11, 2012 in economics A recession means a fall in GDP / national output. A recession will typically be characterised by high unemployment, falling average incomes, increased inequality and higher government borrowing. The impact of a recession depends on how long it lasts and the depth of the fall in output. The great recession of 2008-12 has shown many of the negative impacts of recession. Unemployment Not everyone is affected equally by a recession. A fall in GDP will cause a rise in unemployment. This is because: • Some firms will go bankrupt meaning all workers lose their jobs. • In an effort to reduce costs, firms will cut back on hiring new workers. Therefore, unemployment often affects young people the most. In this recession, unemployment in the UK has risen to over 2.6 million, though given the depth of the recession, you might have expected it to be even more (e.g. in 1980s, unemployment rose to over 3 million). However, in Europe, many countries in recession have seen a catastrophic rise in unemployment. With rates of over 20% in countries such as Greece, Spain and Portugal. [pic] Rise in Spanish Unemployment. Source ECB Lower wages Firms will also try to reduce costs by keeping wages low. Some workers (especially temporary workers without contracts may see wage cuts) This has been a key feature of the 2008-12 recession, also aggravated by rising costs of living. With...
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...Financial Crisis and the National Economy PART A Initial balance sheet Liabilities | £m | Assets | £m | Risk Weighting | Risk Adjusted Assets (£m) | Deposits | | Cash | | | | Current accounts | 195 | Cash in Tills | 5 | (0%) | 0 | Time deposits | 94 | Money at call | 5 | (0%) | 0 | | | | | | | Total Liabilities | 289 | Available for sale assets | | | | | Gove' Bonds & Bills | 10 | (10%) | 1 | | | Other Bonds & Bills | 40 | (20%) | 8 | Equity | | | | | | Shareholder Capital | 13 | Other assets | | | | Retained Profits | 3 | Loans and Advances | 125 | (100%) | 125 | | | Mortgages | 120 | (50%) | 60 | Total Equity | 16 | | | | | | | | | | | Total Liabilities + Equity | 305 | Total Assets | 305 | Total Risk Adj’ | 194 | UK Liquidity Ratio | 3.5% | Leverage Ratio | 5.2% | Capital Ratio | 8.2% | Balance sheet after £6m write-down Liabilities | £m | Assets | £m | Risk Weighting | Risk Adjusted Assets (£m) | Deposits | | Cash | | | | Current accounts | 195 | Cash in Tills | 5 | (0%) | 0 | Time deposits | 94 | Money at call | 5 | (0%) | 0 | | | | | | | Total Liabilities | 289 | Available for sale assets | | | | | Gove' Bonds & Bills | 10 | (10%) | 1 | | | Other Bonds & Bills | 40 | (20%) | 8 | Equity | | | | | | Shareholder Capital | 7 | Other assets | | | | Retained Profits | 3 | Loans and Advances |...
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...Brady Heidrick Dr. Dan Deines ACCTG 641 15 October 2014 The Meteoric Rise and Fall of Enron Enron was created in 1985 after a merger between Houston Natural Gas and Internorth. By 2002 it was gone forever. Its stock price rose to $90/share in August of 2000 before bottoming out at $0.40/share when they filed for bankruptcy on Dec. 2nd 2001. It only took 16 years for one of the largest Fortune 500 companies to completely dissolve, taking employee jobs, pensions, Arthur Andersen, and the American public’s faith with it. Enron and its young McKinsey consultant created the energy derivative and used it to form the new natural gas division that dominated the market. However, the use of mark-to-market accounting and the creation of Special Purpose Entities (SPEs) led to overstated profits and inaccurate balance sheets. By the fall of 2001 nobody could find out how Enron was making its money. A disclosure on the October financial statements for a $1.2 billon dollar reversal caught the Security and Exchange Commission’s (SEC) attention. They launched an investigation and in less than two months Enron filed for bankruptcy protection. A large part of the scandal also focused around Arthur Andersen, at the time of the of the Big Five accounting firms, because of its qualified auditing opinions of Enron. It ultimately ceased to exist because of its involvement with the Enron fraud. The Enron scandal showed the public that changes in accounting and auditing standards...
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...at the surge in public debt it prompted and the debts about how quickly governments should cut down economists are an argumentative bunch. Yet before the crisis most found common ground in the notion that fiscal stimulus was on obsolete relic. Monetary policy seemed wholly capable of taming the business cycle. Government efforts to increase spending or cut taxes to battle unemployment would only much things up. When crisis struck in 2008, however, that consensus evaporated. the frightening speed of the economic collapse spurred governments to action, in spite of economists’ doctrinal misgivings. In 2009 many countries rolled out big packages of tax cuts and extra spending in the hope of buoying growth. This stimulus amounted to 2% of GDP on average among the members of the G20 club of big economies. Among Barack Obama’s first step as president in 2009 was to sign the American Recovery and Reinvestment Act, a stimulus plan worth $831 biliion, or almost 6% of that year’s GDP, most of it to be spent over the next three years. Keynes to the rescue Supporters of stimulus looked to the ideas of John Maynard Kaynes, a British economist. Depression, his acolytes reasoned, occurs when there is too much saving. When too many people want to save and too few to invest, then resources (including workers) fall idle. Firms and families might save too much because of financial uncertainly or because they are rushing to deleverage to reduce the ratio of their debts to their assets. In normal...
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...I agree with you and think the biggest challenge to face the United States of America is the national debt. You made great points in regards to the national debt being the most challenging issue in America. Have you ever watched the United Stated of America national debt clock online? It is unbelievable to watch and witness how America’s debt increases by the second. It is saddening to watch our great country fall deeper into debt and see it is no where close to getting out of it. This is a topic people hardly discuss and if people become more educated on the economy then the process for getting out of debt could come faster since a vast majority of people will want an immediate action to be done by the government. Although, when politicians...
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...change the demand for, or the supply of, the good or service. The paper will then conclude with the market prices of the products or services. Define Economics Economics is the research and study of income, production, land, investments, taxes, government spending and labor. Economics is a study of how people choose to earn and spend their resources. The choice needs to be made individually by people and countries about what goods and services they can purchase and which ones they need to delay. Resources are scarce and are pushing people and countries to make choices. Economics is studied from two perspectives. The first being governments of nations seek to maximize the production of countries. This perspective is referred to as macroeconomics. The second perspective is of individuals and firms; this perspective is known as microeconomics. Define Microeconomics Microeconomics refers to the study of economic activity from the viewpoint of an individual firm or groups of individuals. Microeconomics studies how firms, households, persons, and states make economic decisions. Most likely, the activities in markets are studied to determine how the economic decisions are made and how the activities affect the demand and supply for goods and services....
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...money than it actually makes, however the citizens of this country are equally at fault with overuse of credit cards. What is deficit spending and how does it work? A similar example to somewhat relate with can be explained by living about ones means. Spending more money than what is available is risky, furthermore it isn’t living within your means. A government can be at fault for spending more than it receives back just as a person can. Spending money can cause short term setbacks, yet if the long term yields returns it is justifiable. All deficit spending is not bad however, as it takes money to make money furthermore risk versus reward is sometimes...
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