Core Objectives of Government Economic Policy
Key Government Economic Policies
The Role of Government in the Economy
Government as a Producer
Governments often produce or provide:
- Essential goods and services
- Merit goods
- Public goods
They also act to control monopolies.
Government as an Employer
The government is a major employer and aims to manage the national employment level.
Understanding Employment Metrics
Unemployment Rate: Calculated as (Number of Unemployed / Labour Force) x 100.
Full Employment: A situation where most people who want a job have
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Public Finance Fundamentals
Meaning of Public Finance
Public finance is concerned with how governments raise money, how that money is utilized (spent), and the effects of these activities on the economy and society.
Definition by Hugh Dalton
“Public finance is concerned with the income and expenditure of public authorities and with the adjustment of one with the other.”
Scope of Public Finance
The scope of public finance traditionally covers several key areas:
Public Revenue
This branch discusses the
Global Marketing Mix, Pricing Strategies, and Expatriate Success
4 Elements of the Promotional Mix
Personal Selling
- 1-to-1 communication.
- Most effective element of the promotional mix because you can adapt the message to fit customers’ needs.
- The seller can ask questions and probe the consumer in order to adapt.
- Used for high-volume products (e.g., houses).
- Disadvantages:
- Time consuming.
- Difficult to do well; requires skill by the seller.
Advertising
- Communication using mass media which requires payment.
- Advantages:
- Reaches a large number of people simultaneously with
International Business Concepts and Global Trade Dynamics
Fundamentals of International Business
Core Business Definitions
- Business: The manufacture and sale of goods and services (G&S) to satisfy the wants and needs of consumers to make a profit.
- Transaction: An exchange of things of value.
- Domestic Business: A business making most of its transactions within the country in which it is based.
A domestic business in Canada is typically:
- Owned by Canadians.
- Relies on Canadian products and services (P&S).
- Sells products and services to Canadians.
- International
Economic Concepts: Market Failure, Cycles, and State Intervention
Understanding Market Failure
Market failure is a negative consequence of market performance that occurs when the market is inefficient in allocating resources. The major flaws leading to market failure include:
Major Flaws Leading to Market Failure
- Economic Cycles: The market fails to maintain stable growth, leading to periodic crises and the existence of economic cycles.
- Public Goods: The market often fails to provide the necessary quantity of public goods that society needs, requiring state intervention.
Advanced Macroeconomic Formulas and Policy Concepts
Core Macroeconomic Identities and Inflation
The Quantity Identity of Money
The Quantity Identity of Money is expressed as: M × V = P × Y
- M = Money Supply
- V = Velocity of Money
- P = Price Level
- Y = Real GDP
- P × Y = Nominal GDP
Calculating Inflation and Growth Rates
To calculate inflation, multiply new prices by the total number of old goods.
The growth rate form of the Quantity Identity is: m + v = π + y
- m = Money supply growth rate
- v = Velocity growth rate
- π (pi) = Inflation rate
- y = Real GDP growth rate
Assuming
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