...divide into two which is microeconomics and macroeconomics. According to Jeffrey Glen (2013), microeconomics is a study about the insinuation of individual human action, especially about how the decisions made affect the distribution and implementation of scare resources. Microeconomics show the concept of supply and demand, how a business establish prices, how individuals make efficient decisions and how individuals cooperate with one another. Microeconomics is not an explanation for what happen in a...
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...refers to production content, method, recipients, and even quantity. To think like an economist one must analyze every situation by comparing the costs and benefits and make any decisions based on those findings (Colander, 2010). The study of microeconomics zeroes in on the individual and analyzes how economic forces affect the choices he or she makes. Economic forces will ensure that what people want and will pay to get will match what is available. This is the concept of supply and demand. If the prices are such that people are not willing to pay it to obtain an item or service, they will choose to buy less of it, not buy it, or buy a substitute. This is the working of the law of demand. The price affects both supply and demand. When prices increase, the demand decreases, and when prices decrease, the demand increases. In the law of supply, however, if prices increase, individuals and companies will increase the supply because the opportunity cost of not producing the product rises with the price (Colander, 2010). There are factors other than price that can lead to changes in supply as well as changes in demand. These could be government policies, taxes, income, social norms or expectations, political forces, tastes, and prices of other goods, to name a few. Four Steady Trends In the Harvard Business Review, Beinhocker, Davis, and Mendoca discuss 10 trends emerging in this economy. They consist of four trends that are steady, five that are accelerating, and one that...
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...MIcroeconomics: Markets, Methods & Models Douglas Curtis and Ian Irvine | Version 2014/2015 $ ADAPTED OPEN TEXT FORMATIVE ONLINE ASSESSMENT COURSE SUPPLEMENTS COURSE LOGISTICS & SUPPORT a d v a n c i n g l e a r n i n g www.lyryx.com Copyright This work is licensed under a Creative Commons AttributionNonCommercial-NoDerivs 3.0 Unported License. http://creativecommons.org/licenses/by-nc-nd/3.0/deed.en_GB Douglas Curtis and Ian Irvine Edition 1.11 This edition is differentiated from the first edition solely by minor editorial adjustments. Content has not been altered. Microeconomics: Markets, Methods and Models About the Authors Doug Curtis is a specialist in macroeconomics. He is the author of twenty research papers on fiscal policy, monetary policy, and economic growth and structural change. He has also prepared research reports for Canadian industry and government agencies and authored numerous working papers. He completed his PhD at McGill University, and has held visiting appointments at the University of Cambridge and the University of York in the United Kingdom. His current research interests are monetary and fiscal policy rules, and the relationship between economic growth and structural change. He is Professor Emeritus of Economics at Trent University in Peterborough, Ontario, and Sessional Adjunct Professor at Queen’s University in Kingston, Ontario Ian Irvine is a specialist in microeconomics, public economics, economic inequality...
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...3: PRICE TRENDS 12 2005-2009: An overview 14 2010-11: The Highs 15 2012-13: The Lows 16 The Future 17 Conclusion 18 Bibliography 19 Books 19 Articles 19 Websites 19 INTRODUCTION Silver is one of the most versatile metals available. In historical times it was used as a currency. Used as both an industrial metal and a hard asset, it plays double duty in the commodities market. It has also become an investment vehicle which provides a safe haven from the unpredictable stocks and bonds. Trading it and predicting its price is a careful balancing act between what consumers need and what the currency market demands. The objective of the paper is to study the demand and supply mechanism for the silver market. Due to the dynamic nature of the market, the demand and supply forces keep changing due to various reasons; the author has tried to find the same. The author has further tried to study the implications of the demand and supply on the price trends. The research and analysis primarily gives a broad description of the current trends in the market for silver. The paper examines only the spot prices and the study does not include future market. The paper tries to examine how India is a part of the global market. After establishing a link between international and domestic silver market, the paper looks at the price trends beginning from 2005. The paper examines the reason for rise and fall of the prices and analyses the trends to predict how the prices can...
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...allocation of scarce resources to satisfy the unlimited wants and needs. SOCIAL SCIENCE Is the field of scientific knowledge and academic scholarship that explore social groups and, more generally, human society RESOURCES Things use to produce other things to satisfy people wants WANT is something that is desired. It is said that people have unlimited wants, but limited resources NEED Is something that is necessary for survival (such as food and shelter) SCOPE OF ECONOMICS TWO MAJOR BRANCHES OF ECONOMICS MACROECONOMICS Examines either the economy as a whole or its basic subdivisions or aggregates, such as the government, household, and business sectors MICROECONOMICS Looks at specific economics units. At this level of analysis, the economist observes details of an economics unit, or very small segment of the economy ANALYTICAL TOOLS AND M ETHODOLOGY USED IN ECONOMICS rational self-interest means that given a certain condition, individuals try to minimize the expected cost for a benefit or maximize the expected benefit with a cost. Opportunity cost It is cost associated with opportunities that are foregone when a firms resources are not put to their best alternative is one of the most frequently used tools for modern economic analysis, deriving many important economic theories and models. It is also a powerful tool in analyzing individual...
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...Fundamentals of Economics . . . . . . . . . . . Microeconomics, Macroeconomics and Econometrics Inputs and Outputs . . . . . . . . . . . . . . . . . . Opportunity Costs . . . . . . . . . . . . . . . . . . Positive Economics versus Normative Economics . . The three Problems of Economics Organization . . The ten Principles in Economics . . . . . . . . . . . Economics as a Science . . . . . . . . . . . . . . . . How to read graphs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 5 6 6 6 6 7 7 8 11 15 15 15 17 19 20 20 21 22 22 22 23 23 23 24 25 26 31 31 33 34 35 35 38 40 40 43 47 47 47 48 48 48 2 Microeconomics Supply and Demand . . . . . . . . . . . . . . . . . . . . . . . . The Demand Schedule . . . . . . . . . . . . . . . . . . . . The Supply Schedule . . . . . . . . . . . . . . . . . . . . . Equilibrium of Supply and Demand . . . . . . . . . . . . . Elasticity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The price elasticity of demand . . . . . . . . . . . ...
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...General: Process of attaining close and seamless coordination between several departments, groups, organizations, systems, etc. 2.Companies: Merger of two or more firms resulting in a new legal entity. 3.Contracts: Amalgamation of two or more agreements into one contract that serves as a full expression of the intent of the contracting parties. A term used to describe the use of the Internet to replace physical components of a company with information. A business engaged in virtual integration owns only their brand and their clients. This eliminates the need to physically produce, ship or handle any products as they are now outsourced. Read more: http://www.businessdictionary.com/definition/virtual-integration.html#ixzz3EphPUex0 ://www.businessdictionary.com/definition/integration.html#ixzz3EpfP12T2 DEFINITION of 'Vertical Integration' When a company expands its business into areas that are at different points on the same production path, such as when a manufacturer owns its supplier and/or distributor. Vertical integration can help companies reduce costs and improve efficiency by decreasing transportation expenses and reducing turnaround time, among other advantages. However, sometimes it is more effective for a company to rely on the expertise and economies of scale of other vendors rather than be vertically integrated. INVESTOPEDIA EXPLAINS 'Vertical Integration' Backward and forward integration are types of vertical integration. A company that expands backward...
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...goods/services given the limited resources available to produce them. Economics as a subject is divided into 2: 1. Positive economics a. Numbers b. Data c. Facts d. Science 2. Normative Economics e. Values f. Judgment g. Opinion h. Debates Textbooks focus on positive economics only. Normative economics comes from our discussions in class and forums. Microeconomics focuses on the individual markets, players and industries within a country/economy. Macroeconomics focuses on the whole economy/country and also its relations to other countries/economies. CELL * Capital * Entrepreneurship * Land * Labor BEP Questions * What to produce? * How to Produce? * For whom to produce? Supply & Demand The Law of Demand states that as price goes up for a given good/service at a given time, the quantity demanded of that good will fall. Demand is defined, as the quantity of a good/service a consumer is willing and able to buy at a given price over a period of time. Supply is defined, as the quantity of...
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...Evol. Inst. Econ. Rev. 4(1): 143–170 (2007) ARTICLE Econo-physics: A Perspective of Matching Two Sciences Yuri YEGOROV Institute for Advanced Studies, Stumpergasse 56, A-1060, Vienna, Austria, and University of Vienna, Department of Industry and Energy, Brünner Strasse, 72, A-1210, Vienna, Austria. E-mail: yegorov@ihs.ac.at Abstract The present article marks some potentially fruitful dimensions of economic research based on principles of economic theory but using more analogies with physics. Molecular structure of society with its different states, principles generating spontaneous order different from “invisible hand”, social analogies of the concepts of temperature and pressure in physics are investigated. Some analogies between phase transitions in physics and transition between different social regimes can reveal the areas of stability of liberal regimes as well as possibility of spontaneous emergence of different social orders. A possibility to expand neoclassical economics to capture Marxism and nationalism in a formal mathematical framework is also discussed. Keywords: economic structures, origin of order, econo-physics, socio-physics. 1. Introduction This article is methodological. It focuses on economic and social questions that are rarely touched by economic theorists despite their obvious importance for our understanding of economic processes in the world. No fully formalized model will be proposed here. Instead, the focus will be on interaction between...
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...kos keluaran dan pemaksimuman keuntungan D. pilihan pengguna, pilihan individu dan pemaksimuman pengguna 2. Which of the following headlines would be more closely related to what macroeconomics study than what microeconomics study? A. Paddy prices rise due to flood in Kedah. B. The Proton Auto Workers sign a contract raising wages and benefits 7% over the next 3 years. C. Real GDP grows by 2.3% in the second quarter. D. Airlines raise ticket prices in response to rising fuel costs. Mana satukah dari tajuk di bawah yang paling hampir menerangkan kajian makroekonomi berbanding kajian mikroekonomi A. Harga padi yang meningkat disebabkan oleh banjir di Kedah. B. Pekerja di kilang proton telah menandatangani perjanjian bagi meningkatkan upah dan faedah lain sebanyak 7% untuk tempoh 3 tahun akan datang. C. KDNK benar meningkat sebanyak 2.3% dalam suku tahun kedua D. Tiket penerbangan meningkat disebabkan oleh peningkatan kos minyak 3. Macroeconomics differs from microeconomics in that: A. macroeconomics studies the decisions of individuals. B. microeconomics looks at the economy as a whole. C. macroeconomics studies the behavior of government while microeconomics looks at private corporations. D. macroeconomics focuses on the national economy and the global...
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...our wants are unlimited. - Scarcity: Lack of enough resources to satisfy all desired uses of those resources The Central Problem of Scarcity Our materialistic wants and desires continue to grow. - Newest camera phone - Larger television - Bigger house - Exotic vacation Why can’t we have everything we want? - Our wants exceed our resources. Economics and Opportunity Cost Economics – the study of how best to allocate scare resources among competing users. Opportunity cost – The value or price of the most desired goods and services that are foregone in order to obtain something else. - The next best alternative that you give up. Factors of Production Resource inputs used to produce goods and services. The four resources: - Labor, land, capital and entrepreneurship Resources are factors of production. Economic resources – all natural human and manufactured resources that can be used in the production of goods and services. Land – arable land, forests, minerals, energy (oil deposits and coal), water, air, wild plants, animals, birds and fish. Labor – all the physical and intellectual talents that can be used in the production of goods and services. Capital – all manufactured aids to production like tools, instruments, equipment, machines, factory, buildings, transportation, and distribution facilities that businesses use in producing goods and services. It does not include financial capital like money, stock, or bonds. Entrepreneurship – the social human resource...
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...half of the world’s newsprint was supplied by Canada. By 1954, pulp and paper exports accounted for 24% of Canada’s total exports, of which, 33% of those exports were to the United States (Statistics, Canada, 2012). Post 1960, the new staple in the resource landscape for Canada was Energy. Until this time, though some local sources were available on the Prairies and in Nova Scotia, Canada had relied on coal imports. In 1957, there was a major oil discovery in Alberta at Leduc, which lead to a major and dramatic expansion of crude oil and natural gas industry, the effects of which are still evident till date. The North American Free Trade Agreement (NAFTA) removed most of the trade barriers for Canadian producers in US markets. Between 1990 and 2000, the export volumes of forest products increased at a compound annual rate of 4.4%, more than doubling the growth in forest products exports. The forest product export prices also rose at a compound annual rate of 3.2% per year, which outpaced the 2.3% compound annual growth in export goods prices (Statistics,...
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...INTRODUCTION The objective of this mini project is the study the structure and performance of national economies and the policies that governments use to try to affect economic performance. Important topics in this mini project include the determinants of long-run economic growth, unemployment, inflation, and macroeconomic policy. In addition, this mini project are also able us to know the measurement of the standard living of a country in term of productivity, efficiency and effectiveness. Besides that, we are also able to determine what is measured by Gross Domestic Product, Inflation and etc as well as know how the government policy could contribute to improved productivity of the country. The picture below shows the brief idea how does Indonesia looks like. Picture 1: Tourism in Indonesia’s island Picture 2: Place to travel in Indonesia Picture 3: City in Indonesia Picture 4: Map of Indonesia Choose one country of the world The chosen country was Indonesia. The reason of Indonesia been chosen because Indonesia is given public an image that Indonesia is a lag behind country than other since there was a tragic event happened in Indonesia in the middle of 1997 all along. This causing Indonesian suffered a great deal and many of them have experienced a very large decline in their living standard. It was irony in Indonesia’s case seen a country...
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...4.1 Google Inc. 8 4.1.1 Company Profile 8 4.1.2 Strategic Target 8 4.1.3 SWOT Analysis 9 4.1.4 Others 10 4.2 Microsoft Corp. 11 4.2.1 Company Profile 11 4.2.2 Strategic Target 12 4.2.3 SWOT Analysis 13 4.2.4 Others 13 4.3 Amazon.com 14 4.3.1 Company Profile 14 4.3.2 Strategic Target 14 4.3.3 SWOT Analysis 15 4.3.4 Others 15 5. Financial Analysis 16 5.1 Profitability 16 5.1.1 Year-on-Year (YoY) Revenue Distribution 16 5.1.2 Net Income 19 5.1.3 Return on Total Asset (ROTA) 20 5.1.4 Return on Equity (ROE) 21 5.2 Liquidity and Financing 22 5.2.1 Short-Term: Current Ratio 22 5.2.2 Long-Term: Gearing 23 5.3 Shareholder Value 24 5.3.1 Earning Per Share (EPS) 24 5.3.2 Price Earning Ratio (PE Ratio) 25 5.3.3 Dividend Per Share 26 5.4 Risk and Discounting 26 5.4.1 CAPM and NPV on Google Inc. 27 5.4.2 CAPM and NPV on Amazon.com 29 5.4.3 CAPM and NPV on Microsoft Corp. 31 6. Investment Decision and Conclusion 34 6.1 Investment Evaluation’s Matrix 34 6.2 Investment Decision and Conclusion 38 7. References 39 8. Appendix 40 Figures and Tables Figure 51: Amazon YOY Revenue, Cost, and Operating Income 16 Figure 52: Microsoft YOY Revenue, Cost, and Operating Income 17 Figure 53: Google YOY Revenue, Cost, and Operating Income 17 Figure 54: Net Income Comparison 19 Figure 55: ROTA Comparison 20 Figure 56: ROE Comparison 21 Figure 57: Current Ratio Comparisons 22 Figure...
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...Market entry Strategy Glitter is a local company which is currently dealing with fashion accessories, wedding planning and advertising. The company wants increasing its sales by introducing new and modified products on the market. Executives constantly look at new market entry opportunities as a way to generating rapid growth, diversifying their portfolios, and preempting competition—and, occasionally, secretly satisfying their entrepreneurial spirit. There are various ways in which a company can enter in to market. No one market strategy works for all markets. In the case of Glitter, I suggest following strategies are the main entry options open to them. Organic Growth Organic growth strategy involves strengthening your company using its own energy and resources. This is the process of business expansion due to increasing overall customer base, increased output per customer or representative, new sales, or any combination of the above, as opposed to mergers and acquisitions. This approach to company growth is slower than others, but it has relatively low up-front costs, making it an attractive option for small-business owners as Glitter who want to expand their companies but don’t have large amounts of liquid capital. Developing your company’s strengths through organic growth can make you a stronger competitor in your industry. For instance, a company that continually devotes its profits to improving its quality-control department offers increasing value to its...
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