Economy Archives - Student Notes

WACC Calculation and Capital Structure: Optimal Leverage & Pecking Order

Posted by admin on Jan 11, 2026 in Economy | 0 comments

Weighted Average Cost of Capital (WACC)

WACC = the weighted average cost of the financial resources used by a company or project after taxes. It represents what it costs the company to obtain financing. It combines the cost of debt and the cost of equity (what shareholders require), weighted according to the proportion that debt and equity have in the capital structure.

CAPM Assumptions

Perfect markets (perfect competition, free information for all investors, and no transaction costs).
Homogeneous

Key Concepts in International Finance and Economics

Posted by admin on Jan 11, 2026 in Economy | 0 comments

Role of the International Monetary Fund (IMF)

The IMF provides financial assistance to countries in crisis. It helps stabilize exchange rates and balance of payments. In return, it requires economic reforms.

Members of the International Financial System

It includes central banks, governments, commercial banks, the IMF, and the World Bank. It also includes financial markets and investors. Together, they manage global financial stability.

Why the US Dollar is the Global Reserve Currency

The dollar is widely

Policy, Growth and Food Security: Institutions, Subsidies, Population

Posted by admin on Jan 9, 2026 in Economy | 0 comments

Lecture 13: Policy Frameworks and Public Health

Lecture 13: This lecture analyzes policy frameworks by asking, “Who should do what?” It compares the roles and limits of four key actors:

Families/Individuals — best at knowing needs and showing devotion; limited by resources.
Communities — best at local coordination and devotion; limited by scale.
Governments — best at coercion and large-scale coordination; limited by borders.
International organizations — best at cross-boundary issues; limited

Essential Economics Concepts: Markets, Policy, and Global Trade

Posted by admin on Jan 9, 2026 in Economy | 0 comments

Foundations of Economic Systems

Market and Command Economies

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of: buyers and sellers.

In countries like _____________ the command economy predominates: Cuba and North Korea.

Which of the following best denotes the reason for the existence of substantial black markets? A command economy.

Macroeconomics and the Circular Flow

If macroeconomics looks at the economy as a whole, it focuses on which of

Great Depression Key Terms and Definitions

Posted by admin on Jan 8, 2026 in Economy | 0 comments

Great Depression Terms and Definitions

Installment buying

Installment buying: Purchasing a commodity over a period of time. The buyer gains use of the commodity immediately and then pays for it in periodic payments called installments.

Bull market

Bull market: A market in which share prices are rising, encouraging buying.

Speculation

Speculation: With only loose stock market regulations in place before the Great Depression, investors were able to speculate wildly, buying stocks on margin and needing only

Economics Exam Answers: MCQ Key and Short Answer Solutions

Posted by admin on Jan 6, 2026 in Economy | 0 comments

Objective

50 × 1 = 50

1. D    11. A   21. B   31. D   41. D
2. C    12. B   22. D   32. A   42. C
3. D    13. A   23. B   33. B   43. A
4. D    14. C   24. A   34. C   44. D
5. B    15. A   25. D   35. C   45. C
6. B    16. B   26. C   36. A   46. D
7. D    17. A   27. A   37. A   47. D
8. C    18. C   28. B   38. D   48. C
9. B    19. A   29. B   39. A   49. C
10. A   20. A   30. B   40. D   50. D

Section B — Short Answers

1. What is meant by factor price determination?

Factor price determination

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