'Expectations of the future have a significant impact upon consumption and investment decisions made by individuals.' Discuss, in the light of macroeconomic consumption and investment functions.
Andrew Powell Part 1: EC1F1B Introductory Economics Spring Term 2005 Coursework Question - 'Expectations of the future have a significant impact upon consumption and investment decisions made by individuals.' Discuss, in the light of macroeconomic consumption and investment functions. When individuals consider the most efficient means of distributing disposable income a wide range of factors must be considered. A high priority must be given to considering the likely effect of future occurrences. Indeed many circumstances can force individuals (e.g. a consumer, business manager, entrepreneur etc) to budget a greater amount than normal to consumption expenditure as opposed to investment expenditure or vice versa. Firstly, we will consider what expectations may result in an individual budgeting a greater amount to consumption whilst allocating a substandard amount to investment. The current income hypothesis states that current income is the main determinant of consumption. Thus, if an individual's income has or is going to increase, whether it be a permanent or temporary change, then it is common sense to think that he/she will increase the amount consumed and decrease the amount allocated towards saving. Disposable income is a function of consumption plus saving, thus if disposable income increases then the additional income will be distributed in one of these two ways.
The Balance of Payments- Data question (page 196) Question 1 The visible trade balance in figure 30.6 illustrates changes in the balance of trade. This is the difference between exports (which bring money into the country) and imports (money leaves the country). The data informs us there has been a balance of trade deficit in the UK from 1985 to 1999 although this figure has been on varying levels. In the beginning of the period the deficit is £2billion. This reduces to just under £0.5 billion and nearly reaches a complete balance of no deficit or surplus in 1986. The value fluctuates yet steadily rises to reach the highest deficit value of just under £7billion in 1989. The deficit falls in value slowly and reaches a low of only £2 billion deficit in 1992. The value increases to £4billion in 1993 and then fluctuates between £2 billion and £4 billion from 1993 10 1997. From 1997 there is a rapid increase in the deficit and it reaches a value higher that £7billion deficit in 1999. The total investment is shown to be positive due to figure 30.7. The approximate average investment (sum total of years investment divided by number of years is £4bn per annum. Over the whole period £56.25 billion is pent on investment. Initially form 1985 the values of investment is low and peaks at £4billion in 1986. The net investment slowly declines from 1989 and is least at 1991 at
Transfer-Encoding: chunked Student ID: w17005765 Topic. Youth unemployment and economic growth Country: Portugal Committee: International Labour Organisation Conference Youth unemployment represents the part of the population between the ages of 15-24, who are at present unemployed or looking for work, and whom can predict the future of labour force participatory to the economy (OECD, 2016). In the third quarter of 2017, Portugal’s youth unemployment rate was down to 25.7% from an all-time high of 40.7% in 2013; women were affected 4% more than men (Trading Economics, 2017). Labour force participation rate towards the economy is situated at 59.3% of the population while overall unemployment is at 8.5% out of the 10.32 million population in Portugal in the third quarter of 2017 (Trading Economics, 2017). Portugal’s GDP was at $204.5 billion in 2016 [Chart] (World Bank, 2017) showing a slow improvement of 0.2% in GDP in the second quarter of 2017 (Khan, M and Wise, P. 2017) mainly assisted by exports which account for 40% of GDP (OECD, 2017). The public deficit, escalating unemployment, austerity measures aimed to curb recession and excessive debt levels of a fragile banking sector has caused slow economic growth in Portugal (Pritchard, A, E. 2014). Bail-out deals with the EU, and IMF worth £70 billion has caused an increase in tax revenue, sales tax, the rise in
RMIT International University Vietnam Bachelor of Commerce Program ASSIGNMENT COVER PAGE Your assessment will not be accepted unless all fields below are completed Number of pages including this one: 68 pages Word Count: 6,274 words EXECUTIVE SUMMARY Located in the Viet-Sing Industrial Park (Binh Duong Province) with a total area of 1,000 square meters, "2 IN 1 ORAL SOLUTION CO. LTD." will commence operations in July 2007. Being part of the dramatically growing oral hygiene industry in Vietnam, our company manufactures the unprecedented "2 in 1 toothbrush", which is a highly convenient and premium-quality combination of toothbrush and toothpaste into one single product, thus providing customer with an integrated oral hygiene solution. Distinct opportunity exists for our "2 in 1 toothbrush" due to the increasing need for convenience among consumers, especially travelers and office workers; the increasing awareness of life quality, health and personal care; the existence of market gap and strong market growth. "2 in 1 toothbrush" consists of 3 components: a complete toothbrush, a rubber toothpaste tube and a toothbrush cap, fitting nicely with one another. Our company offers two types of toothbrush catering for customers' short-term and long-term needs of our product: NORMAL TOOTHBRUSH, which is priced at 10,000VND / unit and can be used in a maximum of 2 weeks,
BABYZONE JSC BUSINESS PLAN Tung oi, please help to insert a logo or picture to present company or product/service Nguyen Thi Thanh Xuan, CEO Chu Thu Thao, COO Nguyen Thi Thanh Minh, Product Director Nguyen Thanh Tung, CTO Mr. Mr. Pham Anh Tuan - Commercial Director Nguyen Luong Qui - CFO Company address: Head Office: Room 1201 Pacific Buidling 83 Ly Thuong Kiet, Hanoi, Vietnam Store: Km12 Highway No. 1A Hoang Liet, Hoang Mai, Hanoi, Vietnam. Company's website: www.babyzone.com.vn July 26, 2010 TABLE OF CONTENT (Tung oi phan nay nho lam ho chi cai link xuong muc duoi) . Statement of Confidentiality and Non-disclosure 2. Executive Summary 2.1. Summary (Xuan) 2.2. Solution (Tung) 2.3. Market (Tung) 2.4. Opportunity (Tung) 3. Company Overview (Thao 4. Product Summary (Minh) 5. Market Analysis Summary (Minh) 6. Marketing Strategy (Tung) 7. Technology (Tuan) 8. Financial plan (Xuan) 8.1. Assumption(Xuan) 8.2. Start-up funding (Xuan) 8.3. Use of fund (Xuan) 8.4. Exit strategy (Tung) 8.5. Breakeven analysis (Xuan) 8.6. Sales forecast (Xuan) 8.7. Personnel plan (Xuan) 8.8. Projected profit and loss (Xuan) 8.9. Projected balance sheet (Xuan) 8.10. Projected cashflow (Xuan) 8.11. Business ratios (Xuan) 9. Appendix (Xuan) Statement of Confidentiality and Non-disclosure Executive Sumary Summary Babyzone JSC is a joint stock company
How clear is the distinction between voluntary and involuntary unemployment? Voluntary and involuntary unemployment are two concepts in economics that attempt to explain why the economy, even when it is operating at full capacity, still has unemployment. The two concepts are also very useful for trying to explain why, when the economy is not operating at equilibrium, unemployment exists. Before the distinction between the two concepts is assessed, it is necessary to explain them. The labour force consists not only of those who are in work, but also those who are unemployed but able to work for any wage rate. The supply of labour is the number of people willing to work at any given wage rate. The wage rate used is the real wage rate, which is the level of the wage divided by prices, thus showing the value of the wage in real terms. Voluntary unemployment is also known as the natural rate of unemployment, as it is the level of unemployment when the economy is operating at equilibrium. In figure one, the LF curve shows the labour force, and the LS curve, to the left of it, shows the labour supply curve. The LD curve shows firms' demand for labour at any given real wage rate, and is downward sloping to reflect the fact that the cheaper the cost of labour, the more firms are willing to employ extra labour. To keep the model simple, the effects of diminishing returns are ignored,
Corporate Financial Policy Coursework 2008 Q1. By Ravi Waghela Q1a) Portfolio management is the process of managing assets of a mutual fund, including choosing and monitoring appropriate investments and allocating funds accordingly. A mutual fund is an open-ended fund managed by an investment company which raises money from shareholders and invests in a group of assets. Mutual funds raise money by selling shares to the public. 1 In return for the money, shareholders receive an equity position in the fund and, in effecting each of its underlying securities. Investors often hold more shares in more than one company and there are two approaches to portfolio management. The two types are: * Active * Passive Maximising the expected utility of the excess return over a chosen benchmark is known as active portfolio management, whilst passive portfolio management just tracks the benchmark. The simplest example of passive management is the index fund that is designed to replicate exactly a well-defined index of common stock, such as S&P 500.The fund buys each stock in the index in exactly the proportion it represents the index. If J.P. Morgan Chase represents 3% of the index, the fund places 3% of its money in J.P. Morgan Chase stock. Passive portfolio management involves a buy and hold strategy that is buying a portfolio of securities and holding them for a long period
Azat Sakebaev EAP course Report on consumer Behaviour and its importance in the business world Acknowledgments The first thing I would like to say is that I am very grateful for this course work given by my tutor Charlotte Coope because I get acquainted and gained some very crucial information about my course at the university next year. I also would like to mention my tutor for the patience and understanding because it was not easy even to start this course work due do it wide and sometimes confusing direction of the aim given us. Even my classmates made a contribution because they encouraged me and made me staying positive and that is why I am very thankful to them. Eventually, I would like to thanks to my parents, who gave me this opportunity to study here and become independent and probably mature. It was a pleasure to know that you did such long way and achieved good results with hopefully good prospects. Also the marketing classes made a big impact on, especially Gavin Nattras, who was very creative, positive and very helpful with some wise advises. Brief summery Summarising this report I can highlight that big companies, today, are focusing and concentrating very much on consumer behaviour because it is a way to success in business. I explained detailed and hopefully clearly what exactly consumer behaviour is at all and what processes it has. Observing the way
"A country's standard of living depends upon its ability to produce goods and services." (Mankiw, N.G., 2001). In macroeconomics, aggregate demand is the total spending on goods and services produced in the economy over a period of time. This essay focuses on the aggregate demand. In the first part, the essay will give the definition of aggregate demand and explain it in details. In addition, the AD curve is included and analysed carefully. The second part is to explain the relationship between the level of aggregate demand and the rate of economic growth. There are four parts of AD to influence the growth of economy. Lastly, I will examine the relationship between aggregate supply and the rate of economic growth in the long-run. Aggregate demand equals C + I + G + (X - M). C indicates consumer spending on UK produced goods and services; I indicates investment spending in both public and private sector; G indicates government spending on other goods and services which excludes transfer payments because they are not a payment to a factor of production for output produced; X indicates exports, which equals overseas spending on UK produced output; M indicates imports, which is the UK spending on overseas output. The circular flow of income illustrates the linkages between these different elements and depicts the flows of money around the economy. "The British economy comprises
TABLE OF CONTENT Introduction 2 Economic implications dealing trade deficits 2 Policies to reduce a current account deficit 5 Conclusion 8 Bibliography 9 Balance of Payments The international trade in goods and services between countries has increased significantly over the past fifty years. Specialization by each nation has made every country to engage in international trade and hence to maintain balance of payments. The balance of payments is a comprehensive systematic record of a country's financial dealings with the rest of the world over a period of one year. This evaluates all payments among a country and its trading associates. The balance of payment account is divided into two sections, namely current and capital account. Thus the current account consisting the exports and imports of goods and services, net income flow, as well as transfer payments such as foreign aid grants. The current account balance is the accumulation of the balance of trade plus the interest, dividends, profits and transfers. On the other hand, capital account includes all the capital flows such as direct investment, financial investment, currency trading. At the end of the period the current account of the balance of payment can either have a trade deficit or a trade surplus in its accounts. A trade deficit would suggest that the exports are less than imports and a surplus would