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Economics Blog 5
Economics Blog 5
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Economics Blog 5
Inflation is a big problem in many countries in the world at the moment. Inflation is defined as a sustained increase in the costs of goods and services in an economy over a period as stated by Frisch (1980). The main cause in any country is an increase in the money supply in the economy. Mostly this injection of currency is caused by the government making more money than it is supposed. Many third world countries mainly face this problem because of the large debts they owe the developed countries. In their effort to clear these debts, they end up printing more currency that leads to this problem. Gordon (2012) identified three main types of inflation. One is demand-pull inflation where there is an increased demand of goods and services caused by increased government and private spending. The second is cost-push inflation due to reduced supply of outputs caused by either natural disasters or increase in price of inputs. Lastly, we have built-on inflation caused by adaptive expectations where if it is workers they try to keep their wages up with the prices.
It has both negative and positive effects in the economy. Negative effects include uncertainty of future inflation, and this ends up discouraging potential savings and investments. Another one is shortage of goods as the consumers start hoarding goods with the hope of increase in the future price. It is also associated with cost-push inflation, hyperinflation, unemployment and social unrest and revolts. Positive effects are making sure that central banks adjust real interest rates and encouraging investment projects that require non-monetary capital. Room for maneuver is created, and central banks start setting discount rates at which commercial banks borrow money. Government of any country facing this problem should try to control it. Governments and central banks use monetary policy, fixed exchange rates, gold standards, wage and price controls and stimulating economic growth as measures to control inflation.
References
Frisch,H.(1980).Theories of Inflation: Definitions and Measurement.(3rd Edition).PP,10.New York, NY: Press Syndicate of the University of Cambridge.a
Gordon, R, J. (2012). Macroeconomics: Theory and Policy, (12th Edition).Boston: Addison-Wesley Publisher.
Economics Basics Principle-Annotated bibliography
Economics Basics Principles
University Affiliation
Student’s Name
Economics Basics Principles
Any action taken in business may or may not prompt counteractive actions from competitors. In the video, A Beautiful Mind, Nash explores the methods of strategic thinking. In the book, Economics of Strategy, Besanko David provides an example where Pepsi owner, Guth, applied strategic thinking and economics principles to turn around the fate of his company.
Sara Robinson. 2004. How Real People Think in Strategic Games.
In this article, the author describes a celebrity party where the host choose a game of numbers for the party (Sara, 2004). A mathematician present at the party, applying strategic thinking and reasoning, placed her guess at zero, arguing that the guesses of other participants would average to around that figure (Sara, 2004).. The winner was an economist, who had suggested the game and had guessed 31 himself (Sara, 2004). It further explores applicability of game theory to several other situations. This article seeks to explore the thinking of other people in a bid to win by anticipating the actions of the other players. This same scenario plays out in the real world of business as each tries to out think the other and emerge the most profitable. This article is to the point of game theory in its application of real life event and the observation of game theory at play. This article portrays the game theory in its practical terms.
Lindstadit, H. & Muller, J. 2009. Making Game Theory Work for Managers.
This article explores the applicability of game theory to management, where, according to the article, the managers have greatly neglected it, regarding it “more theoretical than practical” (Lindstandit & Muller, 2009). The article gives some models where the game theory is seen to apply with illuminating results (Lindstandit & Muller, 2009). This article is most relevant to the game theory as it diverts from the cliché explanation of the same and adopts a new model explanation in practice. Further, the article directs the applicability of this theory to where it matters the most, management.
Sarah Robinson’s article argues that different people apply the strategic reasoning at different degrees. Thus, one is left in a dilemma as to what extent is the game theory applicable with precision. Further, the scale of applicability of the theory is left in question.
References
Lindstadt, H. & Muller, J. (2009). Making Game Theory Work for Managers. Retrieved from: HYPERLINK “http://www.mckinsey.com/insights/strategy/making_game_theory_work_for_managers” http://www.mckinsey.com/insights/strategy/making_game_theory_work_for_managers
Robinson, S. (2004). How Real People Think in Strategic Games. SIAM News, 37(1): 1-3. Retrieved from: HYPERLINK “http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCgQFjAB&url=http%3A%2F%2Feconweb.ucsd.edu%2F~v2crawford%2FRobinsonSIAMNewsJan04games.pdf&ei=0eK3U67pAYWf7AbNoIG4AQ&usg=AFQjCNE9EvNchCkn-23nku2275kdp6NU2A&sig2=X2A_9CPxHF-3OkXgE_v1pA&bvm=bv.70138588,d.ZGU” http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0CCgQFjAB&url=http%3A%2F%2Feconweb.ucsd.edu%2F~v2crawford%2FRobinsonSIAMNewsJan04games.pdf&ei=0eK3U67pAYWf7AbNoIG4AQ&usg=AFQjCNE9EvNchCkn-23nku2275kdp6NU2A&sig2=X2A_9CPxHF-3OkXgE_v1pA&bvm=bv.70138588,d.ZGU
Final Exam Fall2021
Final Exam Fall2021Name___________________________
Math 117
Quantitative Mathematics
1. The following data is the ages of people buying their first car.
16, 14, 25, 26, 24,
Find the following:
A. Mean_____
B. Median____
C. Mode_____
D. Range_____
E. Standard Deviation_______
For standard deviation, use the formula below:
(x- x)2
_______
n-1
x= element
x= mean
n = number of elements
2. Make a scatter graph for the data above. Be sure to label your graph and draw the line of best fit.
DateAmount of sales in dollars
2010500
2011600
2012400
2013700
2018800
3. Make a cumulative frequency chart from the following ages of 20 car buyers.
19,19,19,19,19,20,20,20,20,24,24,24,25,25,25,25,28, 28, 28, 28
Ages TotalRelative FrequencyCumulative Frequency
4. Describe in a few sentences what is the placebo effect.
5. The following chart contains all the possible results of flipping 3 coins the same time or flipping one coin 3 times
HHH
HHT
HTH
HTT
THH
THT
TTH
TTT
Find the following probabilities
A. 3 tails________
B. 3 heads_________
C. At least one head________
D. At least two heads__________
E. More than one tail_________
F. More than two heads_______
G. 4 heads________
H. No tails________
I. 1 more heads______
J. 2 or more tails_____
6. Sums of rolling 2 dice:
234567
345678
456789
5678910
67891011
789101112
Find the probabilities:
A. P (sum of 6) _______
B. P (sum of 4) _______
C. P (sum greater than 9) _____
D. P (sum less than 6) _______
E. P (even sum) _____
F. P (odd sum) _____
G. P (a sum of at least 8)______
7. A jar contains the follow 30 jelly beans:
6 red, 8 blue, 2 purple, 5 yellow, 7 green, 2 white
Find the following probabilities.
A. P (blue) _______
B. P (green or purple) _____
C. P (white) _____
You select a jelly bean and RETURN it to the jar before selecting the next jelly bean. You do not eat it.
D. P (red and a red and a red) ______
E. P (green and a blue and a yellow) _____
You select a jelly bean and EAT it before selecting the next jelly bean.
F. P (blue and a blue and a blue) _____
G. P (purple and a green and a red) ______
8. Find the odds in favor of landing on an 8 on a spinner numbered 1 – 8.
Formula
P(A)
P (Not A)
9. Find the odds against getting a head on the flip of a coin.
Formula
P( Not A)
P (A)
10. Use 1 – (Complement)n
Find the probability of rolling at least one 4 on five rolls of one die.
____________
11. How many ways can 6 people line up for a bus? ____________
12. A restaurant’s dinner menu includes 5 appetizers, 8 main dishes, 6 vegetables, and 3 beverages? How many different meals can be selected___________?
13. Which formula would you use for the problem below? Circle your answer.
NCR orNPR
A baseball team is being formed with 30 children. Nine children will rotate through all nine positions having a chance to play each position. Which formula will compute the correct number of arrangement of 20 people 9 at a time?
Finance
14. Match the following questions based on the summary of information below
A. How much is the total cost for the home? _______
B. How much time do you have to pay the loan? ________
C. What is the interest rate? ____________
D. How much is the principal? __________
E. What is the monthly payment? _____________
F. What is the total interest paid_____________
Loan Summary
PRINCIPAL $250,000
INTEREST RATE 4.62%
LENGTH 30 years
Payment Summary
NUMBER OF PAYMENTS360
MONTHLY PAYMENT$1,284.60
TOTAL PRINCIPAL PAID $250,000.00
TOTAL INTEREST PAID$212,456.28
TOTAL PAID$462,456.28
COMPOUND INTEREST FORMULAS
Do not do #15, #17 or #18 Do # 16
15. Use formula 1 to determine the amount of savings for a deposit of $15,000, at a 6% rate of interest for 8 years compounded annually.
_____________
16. Use formula 2 to determine the amount of saving for a deposit of $20,000
At 4.5% rate of interest for 6 years compounded quarterly.
___________
17. Use formula 3 to determine the amount of saving for a monthly deposit of $100 in an account with 4% rate of interest for 25 years compounded monthly.
___________
18. Use formula 4 to determine the amount of the monthly deposit musts be made to have $500,000 at the end of 25 years.
_____________