Fiscal policy involves manipulating the level of government expenditure and/or the rates of
tax to control aggregate demand. An expansionary fiscal policy involves raising government
expenditure (an injection) and/or reducing taxes (a withdr
The Accelerator Theory
If national income changes, investment changes. However, the level of investment depends
on the rate of change of national income and as a result tends to be subject to substantial
fluctuations. This is called the Accelerator Theory
Explain the three ways of measuring GDP
Gross Domestic Product is the measure of the value of total output produced within a
countrys borders, with foreign or domestic resources. This measure is important for
assessing how much the economy has grown, to c
Income elasticity of demand
Income elasticity of demand is a numerical measure of the degree of responsiveness of
quantity demanded to a change of income alone. The formula used to find the income
elasticity of demand is:
The income elasticity
Four ways in which policy makers resolve moral dilemmas
Moral dilemmas are abundant in modern democratic societies. Can we protect the bodily
integrity of women and their unborn children at the same time? How can we protect the
free will of adults while a
Managing in a Dynamic Environment
Evolution of Management
An overview of the current labour law in Malta
Code of Ethics
An increase in nominal GDP implies an improvement in living standards. Comment.
Nominal GDP is GDP at current market prices. An increase in nominal GDP does not imply an
improvement in the living standards. This is because GDP has not been adjusted for
The three sector economy
In the three sector economy, we introduce the government. Therefore, there are taxes too.
Yd cannot be expressed as Y because we need to deduct taxes which can be either a lump
sum tax or a proportional tax whereby it varies with
Price elasticity of supply
Price elasticity of supply measures the degree of responsiveness of quantity supplied to a
change in price. This is measured as follows: (like PEd but instead of supply)
Point elasticity of supply: Q x P
Monday, 19 December 2016
Accounting Recognition and Measurement
IAS 11 - Construction Costs
- Conditions that need to be satisfied for costs to be recognised as contract costs: We
can only recognise contract costs if have been incurred and if it probable
Monday, 12 December 2016
Accounting Theory and Recognition
IAS 11 - Construction Contracts - IMP
- Case Study 2:
- alpha plc: This questions basically is all about 1 particular paragraph in the
- Here are we dealing with 1 construction project o
Tutorial Sheet No.
Choose groups 8-12,12-l6,etc. and construct a frequency table. Draw a histogram for
the following experimental results.
The goal of every private firm is to successfully compete on the market. Competing means doing
better than others and eventually prevailing, possibly driving them out of business or acquiring them.
From Schumpeter onwards, creative destructio
The Role of Stakeholders in Your Business
In business, a stakeholder is usually an investor in your company, whose actions determine the
outcome of your business decisions. Stakeholders dont have to be equity shareholders. They can
also be your employees,
What is the global asset management industry? (27
Asset management is the direction of a client's cash and securities by a financial services company,
usually an investment bank. The institution offers investment services along with a wide range of
Analysing the external environment:
To help make decisions and to plan for future events, organisations need to understand the wider
macro-economic environments in which they operate. An organisation on its own cannot affect
these factors, nor can these f
The Eurocurrency Market
Euro Currency Markets:
A euro currency is defined as any currency which is held or traded outside its country of origin. It
doesnt have to do with euro/Europe. The euro currency market is a wholesale market, and is not
The Expansion of International Banking Networks:
Why do banks decide to expand across locations to form international or multinational networks?
1. Regulatory factors: Countries started to decrease barriers to entry; dismantling of exchange
controls and a
Porters Three Generic Strategies:
A firm's relative position within its industry determines whether a firm's profitability is above
or below the industry average. The fundamental basis of above average profitability in the
long run is sustainable competit
Value Chain Analysis?
If you are searching for a way to gain an edge on your competition, consider one of the
business world's most valuable tools: the value chain analysis. Value chain analysis relies on
the basic economic principle of advantage companie
Why and how are banks regulated?
Different reasons why banks are regulated:
1. Interest of Public Conference
Banks borrow short and lend long and in that function, they take liquidity risk. If they do not
raise short term debt they face liquidity problem.
What is financial Innovation? Mention different types of financial innovations, illustrating with
examples of your choice.
Financial Innovation: The process of change in instruments, institutions and operating policies that
determine the structure of the
Explain how the life cycle/portfolio matrix might assist an organisation in mapping out the
preferred strategic direction and identify any limitations to this approach.
BCG matrix (or growth-share matrix) is a business tool, which uses relative market sha
Latin-American crises (1980s):
This crisis affected a number of Latin American countries where they had reached a point that their
foreign debt exceeded their earning power and they were not able to repay it. We will look at the
factors which led to this
What is Loan Syndication? In what ways is it advantageous to banks and borrowers?
Loan syndication is the process of involving several different lenders in providing various portions of a
loan. Loan syndication most often occurs in situations where a borr