notes and answers

notes and answers - Sheet1 Page 1 Economics Notes March...

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Unformatted text preview: Sheet1 Page 1 Economics Notes March 25th, 2008 part 3 1b- 14/2..... b12 c 5 3/a 64 c 4 f-11 & 5 c 2-3 d 4.5 e6 f2 5: lower c: square all 6 and add them ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ NOTES: Factor Markets- factors of production is traded Capital as a factor- including physical capital (plants, equipment etc...) and financial capital (which is the money that gets used Ways to raise financial capital: 1. use one's own wealth/assets (done by small businesses, the interest that you forgo in your investment is that of implicit cos 2. borrow from a bank/ lending institution/ credit card ( do this as long as npv is greater than 0, but you usually have to supply 3. Borrow from the general public by selling bonds ( can only do this if you are a cooperation. Bond- Legal contract that stipula Secondary market- bonds sold between bond holders and the public. prices depend on interest rates 4. sell stock- ownership share in a corporation. You have a right to a share of the corporations profits. value of company = pv(4....
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This note was uploaded on 04/21/2008 for the course ECON 2010 taught by Professor Aljamal during the Spring '06 term at Western Michigan.

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notes and answers - Sheet1 Page 1 Economics Notes March...

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