Production Costs
Summary: I will finish this really soon....
Tuesday, September 15, 2009
Thursday, June 11, 2009
Chapter 10
Link:http://www.economist.com/business/displaystory.cfm?story_id=13832338
Summary
Smart phones are everywhere. People in these modern times love to have the access of checking their mail, going on the web, checking on their business all on a phone. However, even though it seems there are more smart phones out there, the mobile-industry recently announced that they predict a 4% drop in sales. This is strange because even though there is going to be a 4% drop in sales, many companies such as Nokia, Palm, and Apple are producing new phones. On Jun 6th the company Palm showed their newly hand held device called the Pre. After two days, Apple produced their new iPhone which was called the iPhone S. Now the price of the old iPhone went from $199 to $99.
Connection
This article is related to the chapter because it is an example of oligopoly. Oligopoly is when a market or industry is dominated by a small number of sellers called oligopolists. Because there are so small numbers of competitors, each company knows their competitor really well and when thinks happen they know very quickly. Since the Palm came out on June 6, Apple felt the need to outshine them by coming out with a new iPhone which had more applications with it. With the new iPhone, they hope to induce more costumers to keep the new Palm device out of the big picture.
Reflection
I feel that the iPhone will continue to big a big seller even though there is a recession going on. Apple products have always been very popular and they will probably continue being popular because of all the commercial in the media. Its good to see such a small competiting circle between this market groups because then they can work on producing new materials every time. However, I think that the iPhone S is the same as an iPhone except that the extra applications is suppose to attract more customers. Hopefully the next time Apple Company produces a new item, it will be more then just a few applications.
blog comment at https://www.blogger.com/comment.g?blogID=6714927333396650946&postID=1802680515267341812&page=1
Summary
Smart phones are everywhere. People in these modern times love to have the access of checking their mail, going on the web, checking on their business all on a phone. However, even though it seems there are more smart phones out there, the mobile-industry recently announced that they predict a 4% drop in sales. This is strange because even though there is going to be a 4% drop in sales, many companies such as Nokia, Palm, and Apple are producing new phones. On Jun 6th the company Palm showed their newly hand held device called the Pre. After two days, Apple produced their new iPhone which was called the iPhone S. Now the price of the old iPhone went from $199 to $99.
Connection
This article is related to the chapter because it is an example of oligopoly. Oligopoly is when a market or industry is dominated by a small number of sellers called oligopolists. Because there are so small numbers of competitors, each company knows their competitor really well and when thinks happen they know very quickly. Since the Palm came out on June 6, Apple felt the need to outshine them by coming out with a new iPhone which had more applications with it. With the new iPhone, they hope to induce more costumers to keep the new Palm device out of the big picture.
Reflection
I feel that the iPhone will continue to big a big seller even though there is a recession going on. Apple products have always been very popular and they will probably continue being popular because of all the commercial in the media. Its good to see such a small competiting circle between this market groups because then they can work on producing new materials every time. However, I think that the iPhone S is the same as an iPhone except that the extra applications is suppose to attract more customers. Hopefully the next time Apple Company produces a new item, it will be more then just a few applications.
blog comment at https://www.blogger.com/comment.g?blogID=6714927333396650946&postID=1802680515267341812&page=1
Friday, April 17, 2009
Chapter 8
LINK : http://www.economist.com/finance/displayStory.cfm?story_id=12689737
Summary
The article I’ve chosen is about is about the wages of employees rising. Since the economic recession is happening, workers in Saskatchewan got raises in their average weekly earning. There was data showing that about 439,000 people that worked in non-farm like jobs went up 1.9 percent in their payroll. While the hourly pay rates are going up, it seems like the actual hours of work and overtime are going down. The reason that they made the wages of people’s salaries higher was so that they could promote spending to help the economy. Statistics Canada stated that the biggest job losses were in the fields of manufacturing, construction, truck transportation, and non-internet publishing jobs. However there has been job growth in the fields of health and education employment.
Connection
The article is connected to this chapter because it talks about wage control. Since the wages of jobs have gone up, it will promote more spending. With more of a demand for spending, businesses will raise the prices of their goods. Luckily with the prices of goods going up, the government can put a price ceiling to help protect consumers. The price ceiling will help support the consumers and keep up the demand for goods. Wage control is very commonly used by the government to help restrain the occurrence of inflation. With inflations kept down consumer will be more confident with their spending.
Reflection
I think that by increasing wages of people, it will sooner or later hurt them. The increase of wages can help people now, but after a while the problems will catch up. Since the increases are to promote spending, companies will increase their prices so that consumers will have to pay more then they use to. Price ceilings would help but the prices of products will still go up. with the profits of businesses going up, they will not have to have so many employees so there would be less job opportunities to out there. So in the end there would just be job losses and an increase of goods from businesses.
Blog comment at https://www.blogger.com/comment.g?blogID=608050495002425587&postID=2888762571836162320&page=1
Summary
The article I’ve chosen is about is about the wages of employees rising. Since the economic recession is happening, workers in Saskatchewan got raises in their average weekly earning. There was data showing that about 439,000 people that worked in non-farm like jobs went up 1.9 percent in their payroll. While the hourly pay rates are going up, it seems like the actual hours of work and overtime are going down. The reason that they made the wages of people’s salaries higher was so that they could promote spending to help the economy. Statistics Canada stated that the biggest job losses were in the fields of manufacturing, construction, truck transportation, and non-internet publishing jobs. However there has been job growth in the fields of health and education employment.
Connection
The article is connected to this chapter because it talks about wage control. Since the wages of jobs have gone up, it will promote more spending. With more of a demand for spending, businesses will raise the prices of their goods. Luckily with the prices of goods going up, the government can put a price ceiling to help protect consumers. The price ceiling will help support the consumers and keep up the demand for goods. Wage control is very commonly used by the government to help restrain the occurrence of inflation. With inflations kept down consumer will be more confident with their spending.
Reflection
I think that by increasing wages of people, it will sooner or later hurt them. The increase of wages can help people now, but after a while the problems will catch up. Since the increases are to promote spending, companies will increase their prices so that consumers will have to pay more then they use to. Price ceilings would help but the prices of products will still go up. with the profits of businesses going up, they will not have to have so many employees so there would be less job opportunities to out there. So in the end there would just be job losses and an increase of goods from businesses.
Blog comment at https://www.blogger.com/comment.g?blogID=608050495002425587&postID=2888762571836162320&page=1
Monday, March 30, 2009
Chapter 7
Link : http://www.vancouversun.com/business/fp/story.html?id=1393636
Summary
The article talks about how the credit card companies have a 2% average fee for retail owners for the usage of the ability to offer credit cards as a way of payment. Before last June, the rate of interchange fees where ranged from 1.6% to 19% and premium cards at 2.3% to 2.5%. Theses percentages can affect the costs of small businesses that are trying to allow credit cards. If small businesses owner don't use the credit card machines, then they could lose some business because in modern days, many people use credit cards or debit cards because it’s an easier way or carrying money.
Relation
This relates to ch.7 because it is essential to have currency in order to continue on day-to-day business activities. Everyday things such as food, clothing, entertainment and other things, require money from people. The business sector desires money in order to get the kinds of services it wants. This need for money is referred to as a transactions demand. A transaction demand is the money required to accommodate a firm's expected cash transactions. The fact that there is an increase in the unemployment in our economy may be because the demand for money is not as high as it use to be years ago. Supposedly it is easier to earn quick cash on small odd jobs and many people don't want to work in the foods and beverages industry because it is seen as a "bad" job for those who don’t have good education. The supply of money in our economy is an important indicator of economic conditions. It shows the amount of purchasing power available.
Personal Reflection
I personally think that the usage of credit cards and debits cards are important for the circulation of money. Credit cards can be easily stolen but they allow people to borrow money which allows them to spend more money. The lent money will also be charged by the credit company so that they can receive money as well. The problem with credit cards is that they seem way too unsafe to carry because anyone can just use the credit card unlike a debit card. A debit care in my opinion is safer and better because you don’t have to pay for the loans part of a bill because you do not loan any money, a person would just spend their own money. Also, if a person were to have their debit card stolen, then the person would also have to know the debit card PIN number to allow access to the card owner’s cash box.
Summary
The article talks about how the credit card companies have a 2% average fee for retail owners for the usage of the ability to offer credit cards as a way of payment. Before last June, the rate of interchange fees where ranged from 1.6% to 19% and premium cards at 2.3% to 2.5%. Theses percentages can affect the costs of small businesses that are trying to allow credit cards. If small businesses owner don't use the credit card machines, then they could lose some business because in modern days, many people use credit cards or debit cards because it’s an easier way or carrying money.
Relation
This relates to ch.7 because it is essential to have currency in order to continue on day-to-day business activities. Everyday things such as food, clothing, entertainment and other things, require money from people. The business sector desires money in order to get the kinds of services it wants. This need for money is referred to as a transactions demand. A transaction demand is the money required to accommodate a firm's expected cash transactions. The fact that there is an increase in the unemployment in our economy may be because the demand for money is not as high as it use to be years ago. Supposedly it is easier to earn quick cash on small odd jobs and many people don't want to work in the foods and beverages industry because it is seen as a "bad" job for those who don’t have good education. The supply of money in our economy is an important indicator of economic conditions. It shows the amount of purchasing power available.
Personal Reflection
I personally think that the usage of credit cards and debits cards are important for the circulation of money. Credit cards can be easily stolen but they allow people to borrow money which allows them to spend more money. The lent money will also be charged by the credit company so that they can receive money as well. The problem with credit cards is that they seem way too unsafe to carry because anyone can just use the credit card unlike a debit card. A debit care in my opinion is safer and better because you don’t have to pay for the loans part of a bill because you do not loan any money, a person would just spend their own money. Also, if a person were to have their debit card stolen, then the person would also have to know the debit card PIN number to allow access to the card owner’s cash box.
Thursday, March 5, 2009
Chapter 6
Link: http://www.economist.com/finance/displaystory.cfm?story_id=13240636&CFID=45434287&CFTOKEN=42455415
Summary
In Japan they are spending more then the average American household and so Japan's trade balance went into a shortage last year. From the six months to January, Japan had a annualized trade shortage of ¥4 trillion which is equal to $39 billion. This is a big shift compared to the surplus of ¥11 trillion the year earlier. Japans foreign investment is also shrinking thanks to the lower dividends and interest rates. Most economists think that Japan will have a reduced GDP of 1%, down from the 4.8% in 2007. The saving rate of a household in Japan went from 18% of income in 1980 to about 1% last year. In contrast, the American saving rate went up to 5% in January because of the tight credit and falling wealth. As the population continues to age, the household savings will go even lower and even perhaps into negative because the retired live off their large stash of financial assets.
Connection
The connection between this article and the textbook is the situation of saving and spending. The more a household saves, the less income is going into companies. When companies receive less income, they either cut back on the wages of employees or increase the prices of their product. Once companies have increased their product, then people will have to pay more for the item This creates a paradox of thrift. If a person chooses to save money in a place where they don't gain interest, their spending power is decreasing. A person who lends money will lose money if the prices of things are going up. The person who borrowed the money has the advantage because they only have to pay back the money that is worth less now. Japan is saving less money and spending more so they have a shrinking surplus.
Reflection
This reflects us because Japan is a very big economical supplier for everyday things that people use. Since Japan might have some economics issues later on, things that that are usually supplied by and made in Japan will be more costly. I think that as long as the Japanese people realize that they need to save more money, they can start to help rebuild their falling surplus problem. The exports that they have are important part of their income. Japan has usually had a good economical status where their money issues are okay. But since a few months til now they seem to be getting into some trouble. If Japan ends up having too big of a trouble to handle, things can get to be very costly.
Summary
In Japan they are spending more then the average American household and so Japan's trade balance went into a shortage last year. From the six months to January, Japan had a annualized trade shortage of ¥4 trillion which is equal to $39 billion. This is a big shift compared to the surplus of ¥11 trillion the year earlier. Japans foreign investment is also shrinking thanks to the lower dividends and interest rates. Most economists think that Japan will have a reduced GDP of 1%, down from the 4.8% in 2007. The saving rate of a household in Japan went from 18% of income in 1980 to about 1% last year. In contrast, the American saving rate went up to 5% in January because of the tight credit and falling wealth. As the population continues to age, the household savings will go even lower and even perhaps into negative because the retired live off their large stash of financial assets.
Connection
The connection between this article and the textbook is the situation of saving and spending. The more a household saves, the less income is going into companies. When companies receive less income, they either cut back on the wages of employees or increase the prices of their product. Once companies have increased their product, then people will have to pay more for the item This creates a paradox of thrift. If a person chooses to save money in a place where they don't gain interest, their spending power is decreasing. A person who lends money will lose money if the prices of things are going up. The person who borrowed the money has the advantage because they only have to pay back the money that is worth less now. Japan is saving less money and spending more so they have a shrinking surplus.
Reflection
This reflects us because Japan is a very big economical supplier for everyday things that people use. Since Japan might have some economics issues later on, things that that are usually supplied by and made in Japan will be more costly. I think that as long as the Japanese people realize that they need to save more money, they can start to help rebuild their falling surplus problem. The exports that they have are important part of their income. Japan has usually had a good economical status where their money issues are okay. But since a few months til now they seem to be getting into some trouble. If Japan ends up having too big of a trouble to handle, things can get to be very costly.
Sunday, February 22, 2009
Thursday, January 22, 2009
Chapter 4 - Government in Canada
Article: http://www.canada.com/vancouversun/news/business/story.html?id=54a58cb2-f2a4-4698-9410-daf70649af50&k=25600
Summary
This article I have chosen talks about a group of 80 B.C. business which call on Finance Minister Carole Taylor to adopt a revenue-neutral tax to help confront the climate change. There was a letter that was sent to Taylor, regarding to the changes of taxes from the income and corporate earnings to the carbon emissions. They say that it will be an incentive to help out reducing carbon emissions while ensuring that B.C. firms remain competitive and wage earners are not badly impacted. There was a group of economists that sent a letter similar to the businessman to finance minister concerning this matter. With the revenue used to help reduce gas emissions, Carole told The Vancouver Sun that she is thinking of a new tax on gasoline. Esther Speck, Mountain Equipment Co-op's director says, "We know we need to do this, and we believe this is the most efficient and cost-effective way of getting to it." However, it has not been specified if B.C. will initiate this carbon tax in the provincial budget in February 2008. Carbon taxes are seen to be the best ways to support energy conservation. The tax could go against greenhouse gas emissions at any stage in the manufacture or distribution of a consumer good.
Connection
This article is related to Chapter 4 because it is mainly about taxes. Many Canadians think that they are paying too much money towards taxes to the government. Taxes such as PST, GST, Income tax, Direct tax, Indirect tax, and now the government would issue a Carbon tax. The government hopes that this Carbon tax can help the people use less gas so that the environment can be more clean. This carbon tax is also to help gain a revenue to the government because people who have to drive, will need to pay the tax whether they want it or not. People are also unaware of what the government would choose to do with money new source of revenue. Would the government spend it to help equalize the offset caused by the carbon tax by fixing up other parts of the system which need money? Parts such as helping the homeless because the homeless rates have risen from last year. This new tax also puts many people onto the edge. People who are tight with money who need to drive, have to be able to deal with the new tax, even though they also have enough trouble trying to keep up with their income in society.
Reflection
I personally think that the carbon tax is a good thing. So far I've noticed that the air in Vancouver isn't as good as it use to be. I hope that one day, it wont turn out like many other populated places where the air can even seem yellow from all the mess in the air. I have so far practiced with my L license and and soon going to be getting my N. These carbon taxes will effect me, but i still think that keeping the environment nice and clean is an important issue. An important reason as to why the carbon tax is first implicated, is because of the issue Global Warming. To stop global warming, the government wants people to drive less just like who there is a tax on alcohol to stop drinkers. Even if this is a reason, i am not too sure that this is actually helping to world, or just creating more problems. With more money needing to be paid, it makes the economy worse, but since the government can do good things with the money like help other parts of the system which needs help, it could help the economy.
Summary
This article I have chosen talks about a group of 80 B.C. business which call on Finance Minister Carole Taylor to adopt a revenue-neutral tax to help confront the climate change. There was a letter that was sent to Taylor, regarding to the changes of taxes from the income and corporate earnings to the carbon emissions. They say that it will be an incentive to help out reducing carbon emissions while ensuring that B.C. firms remain competitive and wage earners are not badly impacted. There was a group of economists that sent a letter similar to the businessman to finance minister concerning this matter. With the revenue used to help reduce gas emissions, Carole told The Vancouver Sun that she is thinking of a new tax on gasoline. Esther Speck, Mountain Equipment Co-op's director says, "We know we need to do this, and we believe this is the most efficient and cost-effective way of getting to it." However, it has not been specified if B.C. will initiate this carbon tax in the provincial budget in February 2008. Carbon taxes are seen to be the best ways to support energy conservation. The tax could go against greenhouse gas emissions at any stage in the manufacture or distribution of a consumer good.
Connection
This article is related to Chapter 4 because it is mainly about taxes. Many Canadians think that they are paying too much money towards taxes to the government. Taxes such as PST, GST, Income tax, Direct tax, Indirect tax, and now the government would issue a Carbon tax. The government hopes that this Carbon tax can help the people use less gas so that the environment can be more clean. This carbon tax is also to help gain a revenue to the government because people who have to drive, will need to pay the tax whether they want it or not. People are also unaware of what the government would choose to do with money new source of revenue. Would the government spend it to help equalize the offset caused by the carbon tax by fixing up other parts of the system which need money? Parts such as helping the homeless because the homeless rates have risen from last year. This new tax also puts many people onto the edge. People who are tight with money who need to drive, have to be able to deal with the new tax, even though they also have enough trouble trying to keep up with their income in society.
Reflection
I personally think that the carbon tax is a good thing. So far I've noticed that the air in Vancouver isn't as good as it use to be. I hope that one day, it wont turn out like many other populated places where the air can even seem yellow from all the mess in the air. I have so far practiced with my L license and and soon going to be getting my N. These carbon taxes will effect me, but i still think that keeping the environment nice and clean is an important issue. An important reason as to why the carbon tax is first implicated, is because of the issue Global Warming. To stop global warming, the government wants people to drive less just like who there is a tax on alcohol to stop drinkers. Even if this is a reason, i am not too sure that this is actually helping to world, or just creating more problems. With more money needing to be paid, it makes the economy worse, but since the government can do good things with the money like help other parts of the system which needs help, it could help the economy.
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