Which one? If not, what economic system do you think your nation runs? 2. In the space below, organize your economic data. Highlight statistics that you think would indicate that your country runs a market-oriented economy.
Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) An economic system that is regulated by the interactions between producers and consumers in the market. 2. Name at least two features of capitalism.
ASSIGNMENT 1 CHAPTER 1 – Limits, Alternative and Choices 1. Economics may best be defined as the: A. interaction between macro and micro considerations. B. social science concerned with how individuals, institutions, and society make optimal choices under conditions of scarcity. C. empirical testing of value judgments through the use of logic. D. use of policy to refute facts and hypotheses.
5. Why is the market capitalization different than the common stockholders’ equity? 6. Comment on the trend in the dividend payout. J.
What is the price of equity capital? What are the four most fundamental factors that affect the cost of money, or the general level of interest rates, in the economy? The price that a borrower must pay for debt capital is called interest rate. The price of equity capital is expresses as dividend yield + capital gain. The four fundamental factors that affect the cost of money are production opportunities, time preferences for consumption, risk, and expected inflation.
(0.5 points) By commodity 6. What is a country’s GDP? (0.5 points) gross domestic product Lesson 2 (3.0 points) 1. What is a market economy? (0.5 points) economic system that is regulated by the interactions between producers and consumers.
Discuss surplus-enhancing transactions in markets 6. Explain how elasticity affects the way in which the burden of a per-unit tax is shared between buyers and sellers 7. Explain how elasticity affects the size of the deadweight loss created by a per-unit tax **NOTE: All of chapter 5 of Hubbard, Garnett, Lewis and O’Brien (2011) Microeconomics, 2nd edition, Pearson is required reading. 1. Consumer surplus The difference between the highest price a consumer is willing to pay for a good or service, and the price they actually pay.
The various adjustments that are made to net income in arriving at net cash flow from operating activities. 10. The different tools of financial statement analysis, and how each tool is used, as well as the different names for certain tools of analysis. 11. The different ratios, why/how those ratios are used, and which external user is interested in a certain ratio.
1. Provide the definitions of throughput, inventory and operational expense given in The Goal. How do they compare with the traditional definitions? Do you find them useful, and why? Throughput is the rate at which the system generates money through sales while inventory is all the money that the system has invested in purchasing things which it intends to sell.
Quiz #1 1. TCO 1) The primary focus of the study of economics is on making the most efficient use of scarce productive resources. 2. (TCO 1) The key economic concept that serves as the basis for the study of economics is Student Answer: scarcity. 3.