A major cost of unemployment is lost production.
The unemployment rate is the percentage of the people in the adult population
who are still looking for a job.
Frictional unemployment can help to increase the e
THE GOVERNMENT & FISCAL POLICY
Contrast the classical view of how the economy works with the Keynesian view.
Go to Mel and view the additional reading materials on John Maynard Keynes.
What measures did Keynes suggest to bring about economic r
Multiple-Choice and True/False Questions
a reduction in everyones standard of living.
a rise in the prices of all goods and services.
a general and continuing rise in the money prices of goods and services
Read the following conversation:
Kelly: After lunch, I need to pick up a birthday gift for Ace.
Elliot: Ill go with you.
Kelly: The gift costs $45. Ill put it on my MasterCard.
Elliot: Why dont you just use cash? Its not that m
1. Assume that the required reserve ratio is 10 %.
a. Bank A receives a deposit of $1000. Assuming it wishes to hold no excess
reserves, determine how much the bank should lend. Show your answer on
Bank As balance sheet.
Tutorial on The Singapore Economy
Based on the article Economics 2008: 10 Lessons by Fiona Chan, published
in The Straits Times on 1 Jan 2009, review the top 10 economic trends in a
year where uncertainty has been the only constant.
THE PRODUCT OF A NATION (GDP)
1. Explain why it is important to measure the product of the nation, GDP. What is
the difference between GNP and GDP?
Siemens Singapore reported that it produced $200 million worth of goods last
year. Where should th
INTRODUCTION TO ECONOMICS & MACROECONOMICS
Lionel Robbins said, Economics is the science which studies human behavior
as a relationship between ends and scarce means which have alternative uses.
Milton Friedman said, Economics is the science o
A Practice Question
The following data refers to a three-sector economy.
C = 500 + 0.75Yd
I = 300
G = 800
T = 600
Calculate the equilibrium level of output in this economy.
Country X has just opened up its economy to foreign investment and foreign
Solutions to Chapter 6
Coupon rate = 6%, which remains unchanged. The coupon payments are fixed
at $60 per year.
When the market yield increases, the bond price will fall. The cash flows are
discounted at a higher rate.
At a lower price, the b
Joey is a dentist, below is her balance sheet (statement of financial position) at the start of the year:
Statement of Financial Position for Joey Dental as at 31 March 2011
Accounts Receivable (A/R)
Demand for credit operating, investing, and financing activities.Supply of credit:
Creditors, banks, public debt investors, private lenders.Maximum return of a debt
investor is determined by the interest rate set in the loan and the prevailing market rate
Financial Statements:1:Balance Sheet
Assets are listed in order of liquidity;
Liabilities are listed in order of maturity. Equity consists of Contributed Capital and
Retained Earnings. BS provides information companys resources (assets) and claims to
Criteria of recognition of revenue: 1:realized or realizable (companys net assets have
increased). 2.Earned (has performed its duties under the terms of the sales agreement)
Restructuring costs: 1.asset write-downs (net book value,expense in inco