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2008 Economic Crisis
A sub-category dedicated to the economic crisis that has affected us all
810 Questions
Economic Influences as I understand are as below (comments welcome)
EFFECT: eg Reduction in Crime- saved police time and prison cost, More Jobs, More Income, Reputation of City etc
FACTOR: eg New Palygrounds, New Factory, Olympic, Organising Olympic 2012 etc
PRINCIPAL: Children - Citizen, Job Seekers, Hotel Owners, London-more revenue
Use your imagination :)
Rashid
What is meant by heterogeneous goods in economics?
Goods or services that pertains to the same function. They are close substitutes with distinguishable features i.e. different packaging, shape size etc, unlike Homogenous goods which are undifferenciated
Salary range for a personal wealth manager?
the salary for a wealth manager or any job varys. it only stays the same comparing to where you are in the business. manager, pres, vice pres, or only a secretary, the normal range for a wealth manager is in the thousands range that's a good job but its a lot of training and education involved hope ur smart if you want to be a wealth manager!
What is decreasing marginal return?
For each additional item that you get it has incrementally less value to you.
I like to use chocolates as an example. Suppose I have a bag of chocolate candy and suppose that I am selling pieces of candy out of the bag to you and you really really like chocolate candy and I am the only person in the world who sells it. Also suppose for purposes of my example you must eat the candy right away.
Lets say now, for example you are willing to pay me five dollars for one of the pieces of candy and you eat it. Not completely satisfied you want another piece of candy but this time the piece is not worth $5 to you it is now worth $4. The third piece is worth $3 and so on... Eventually a piece of candy will suddenly be be worth $0 because you will not want any more even if it is free. In fact, if you do take pieces once they become free you will probably begin getting sick. At that point I would actually have to start paying you to get you to eat the candy!
What are the advantages of investment?
Looking at macroeconomic objectives, money will decrease in real terms due to inflation. Meaning a apple used to cost me $2 but now it costs me $3, your $2 can no longer purchase the apple, therefore the $2 has decreased in value in real terms.
Investing, like purchasing stock will earn you money which may compensate for the decrease of value of money in real terms, but notice that there is a risk of losing money as well. Another example is putting your money into a bank, this is a sort of investment as it gives you a interest rate, but in most cases this rate is lower than the inflation rate.
