Economics
4 phases of the business cycle
expansion, peak, recession, trough
define franchise
the right to do business using the brand and products or services of another business
The CPI was 121 in 2022 and 179 in 2023. What was the inflation rate between 2022 and 2023?
((179-121)/121)*100 = 48%
tariffs vs. quotas
tariff - a tax that a government places on imported goods
quota - a limit or ceiling on the amount of a good that can enter the country
What happens during the peak phase?
consumer demand has started to slow and businesses respond by cutting workers and production. GDP begins to decline and a recession begins.
general partnership vs. limited partnership
A general partnership means that all partners have unlimited liability, meaning that they share the risk of the business.
A limited partnership means that there is at least one managing partner and at least one limited partner. Limited partners have limited liability, so they are only liable for the amount of their investment.
software that is free to use and has copyright
freeware
explain externalities
the consequence of an economic or industrial activity that affects other people without being /directly/ related to the production of a good of service itself
name the leading indicator(s), the lagging indicator(s), and the coincident indicator(s)
leading - stock market
lagging - unemployment rate
coincident - GDP, inflation
The owners of an LLC are called ____
The owners of an LLP are called ____
members, partners
What would be an internal buying influence for a business?
ill tell u if ur right
If the economy is speeding up rapidly, how can the Fed use monetary policy to fix it?
increase interest rates
name the 4 market structures and what they mean
(economics of competition)
monopoly - a structure where one business has complete control over the market’s entire supply of goods and services
oligopoly - a market where there are only a few large businesses that sell the same products, so competition is limited
perfect competition - a lot of small businesses sell the same products at similar prices
monopolistic competition - a large number of small businesses sell similar, but not the same, products at different prices
What are the 6 ways that entrepreneurs can debt finance?
borrowing from a bank, peer-to-peer lending, SBA loans, borrowing from their 401ks, borrowing from friends/family, trade credit
Half of apple farmers switch to grapes, and a FOX News article comes out that apples cause obesity. How do price and quantity change?
p indeterminant, q down
Downsides to the two aspects of expansionary fiscal policy
taxes - just because you lower taxes, doesn't mean people will spend their money and put it back into the economy
gov spending - government has to borrow so debt
the us bls has been very very hard at work this past month!! this morning something very important came out -- the new cpi index. what's the current inflation rate based on the new cpi index?
3.2%
you've got two question choices here
1) what's the most successful shark tank deal ever in history? (not for points but do you know how much this company made following the deal?)
2) people refer to deals with whom as deals with the devil? (hint: his nickname is Mr. wonderful)
1) scrub daddy ($100 million)
2) kevin o'leary
as we briefly discussed, the phillips curve (created by William phillips) is the economic theory that explains why inflation and unemployment may have an inverse relationship. explain to me why William phillips may have been right.
lower unemployment --> more people working --> more money made --> more money to spend --> more things demanded --> when demand shifts right, so does price --> higher prices = inflation :)
in 1962 president kennedy placed an embargo on cuba. what else did Kennedy do in 1962?? what affect did this embargo have on cuba and why was the magnitude of the affect so large?? (hint: you can get the answer to the last two questions if you just intuitively think about it. the first one was said in class)
completed destroyed their economy (~ $150 billion in losses but you didn't need to know this). had such a large affect bc cubas a small island (and reliant on us trade)