MGMT 4A Study Guide - Final Guide: Organizational Culture, Capital Asset Pricing Model, Human Capital
Document Summary
Microeconomics: individual markets and actors, prices, wages, and rents, strategic organization of industries. Macroeconomics: growth and recessions, inflation and productivity fiscal and monetary policy. Net present value=benefits - program costs + opportunity costs. Godfather of economics: adam smith, free market, low price, high quality, efficient market outcome for all, most productive and allocative efficient type of market structure, too restrictive for most industries. Command economy: government makes the decisions for production and distribution. State capitalist: government owns most companies, but rely on market mechanisms. Mercantilist: 16th century, tariffs to protect domestic markets/jobs, subsidize exports. Oligopoly: an industry structure characterized by small number of large firms. Net present value: value of money in the present compared to the future value when invested with compound interest. Ppf: max production obtained given state of technology and quantity of resources available. Sacrificing consumption for investment can help economies grow faster.
