ECON 1116 Lecture Notes - Lecture 1: Dow Jones Industrial Average, United States Treasury Security, Nasdaq
14 Sep 2016
School
Department
Course
Professor
Document Summary
Djia (dow jones industrial average: market health, a subset of 30 firms. Represent the entire market: increase = positive outcome in the future, uncertain. Nasdaq (tech firms), us 10-year treasury bond, crude oil. Why is the value of the euro important: it is a competitor of the dollar, it 0is relative to us currency. Why raise interest rates: if the economy is growing too quickly, to prevent inflation, ecb did not increase interest rates. Politics represents future business policies: democrats represent pro-consumer, republicans represent pro-business. War affects business: war is bad for business unless you"re in the business of war, less products sold in the places with war during that time. Positive economic conditions increase chances of incumbent party winning. 5% unemployment is ideal, any less and it means that there aren"t enough people for the jobs. Two reasons to intervene in market outcomes: inefficient, unfair. Minimum wage- unfair to have very low wages.
