Definition
- For those individual who are working age, available for work at a certain wages but there are unemploy which do not have the current job.
- Unemployment rate can be calculate by the unemployment/labour force = % of unemployment rate.
Causes of Unemployment
3 causes
(i) Cyclical Unemployment
- it affect by the business cycle fluation.
- The Unemployment rises sharply whn the GDP falls and decrease when the real GDP growth rapidly.
- Cyclical Unemployment rises during the GDP falls or growth at a slower than normal rate and decrease whn the economy improves.
(ii) Frictional Unemployment
- occurs during natural working economy.
- For examples, move to other countries, people change job, seek for better opportunity and get lain for the current job.
- Improving the new information will effect informing workers of other opportunities in the economy and thereby will leads the employess to wuit the current job. Frictional Unemployment also known as search unemployment.
(iii) Structural Unemployment
- occurs because of the mistmatch between the job that are available and the skills of the workers.
- Workers whose skills do not match with the employment oppurtunity in their area may be unemployment.
- Re- skilling and other training and devlopment program may help to reduce the problem faced.
What is Natural-rate of Unemployment?
- Natural- rate of employment refers to the absence of the cyclical unemployment where it only consists of fractional unemployment and structural unemployment.
What are the causes of unemployment?
(i) economic waste
(ii) Severe hardship
(iii)Loss of goverment revenue
Tuesday, May 11, 2010
Comparative Advantage
Definition
- A principal based on the assumption that an area of specialize of goods and service that have the greates advantage or the lowest opportunity cost.
- Each individual will try to concentrade on their own activities business for which his opportunity cost is the lowest.
- By concentrating on those task which are most prodcutive and more can be produce vastly rather thn we try to be self-suffcient.
Sources of Comparative Advantage
- It can be devided into 2 level
(i)Individual level
(ii) National Level
- At the individual level, there is often appearce to be the result of inborn talent. This can be showned from the educational level, experience and training.
- From the national level, the comparative advantage can be deserved from the culture and society.
- The non- economic factor is the use of the english language a high standard of craftmanship.
- Besides that for those who do not have specialization, that are required to work in a long hours and accept the low wages.
- The same logic that leads the individual to specialise and exhange goods and services among themselves also can applied to the countries on specialize and trend among each another.
- While reducing the barriers of intenatinal trade, it will leads to the total increased of total value production and services to the nation. But it can guarentee all the citizen will be benefit from the situation.
- For example, the emerging of the economic growth can exploit the comparative advantage in the production by the unskilled employees.
What are the benefit of trade?
- Economist compare the local current price with other countries. This price prevailing in world market know as the world price.
- When the world price is higher thn the dosmestic price, the domestic economy has a comparative advantage.
- Once free trade is allow, the domestic price will rise up and equal the world price.
How can we increase the trade?
3 way
(i) Expand the volume of trade with developed countries
(ii) Foregin aid-agent/ loans from the goverment of advance nation
(iii) Encourage private capital flows
- A principal based on the assumption that an area of specialize of goods and service that have the greates advantage or the lowest opportunity cost.
- Each individual will try to concentrade on their own activities business for which his opportunity cost is the lowest.
- By concentrating on those task which are most prodcutive and more can be produce vastly rather thn we try to be self-suffcient.
Sources of Comparative Advantage
- It can be devided into 2 level
(i)Individual level
(ii) National Level
- At the individual level, there is often appearce to be the result of inborn talent. This can be showned from the educational level, experience and training.
- From the national level, the comparative advantage can be deserved from the culture and society.
- The non- economic factor is the use of the english language a high standard of craftmanship.
- Besides that for those who do not have specialization, that are required to work in a long hours and accept the low wages.
- The same logic that leads the individual to specialise and exhange goods and services among themselves also can applied to the countries on specialize and trend among each another.
- While reducing the barriers of intenatinal trade, it will leads to the total increased of total value production and services to the nation. But it can guarentee all the citizen will be benefit from the situation.
- For example, the emerging of the economic growth can exploit the comparative advantage in the production by the unskilled employees.
What are the benefit of trade?
- Economist compare the local current price with other countries. This price prevailing in world market know as the world price.
- When the world price is higher thn the dosmestic price, the domestic economy has a comparative advantage.
- Once free trade is allow, the domestic price will rise up and equal the world price.
How can we increase the trade?
3 way
(i) Expand the volume of trade with developed countries
(ii) Foregin aid-agent/ loans from the goverment of advance nation
(iii) Encourage private capital flows
Elasticity
Definition
- the percentage changes in the quantity demanded over the percentage of the determinant that caused the changes in the above quantity.
- There are four type of elasticity:
(i) Price Elasticity Demand (PeD)
(ii) Price Elasticity of Supply (PeS), =1 unit elasticity, >1 Elastic where quantity supply is relatively responce to the changes of price and < 1 is inelastic where the quantity supply is non relative to the changes of price.
(iii) Cross Elasticity of Demand (CeD), >1 refers to Substitude goods, <1 refers to Complimentary goods.
(iv) Income Elasticity of Demand (Yed), >1 refers to Normal Goods and <1 refers to Inferior Goods.
- the percentage changes in the quantity demanded over the percentage of the determinant that caused the changes in the above quantity.
- There are four type of elasticity:
(i) Price Elasticity Demand (PeD)
(ii) Price Elasticity of Supply (PeS), =1 unit elasticity, >1 Elastic where quantity supply is relatively responce to the changes of price and < 1 is inelastic where the quantity supply is non relative to the changes of price.
(iii) Cross Elasticity of Demand (CeD), >1 refers to Substitude goods, <1 refers to Complimentary goods.
(iv) Income Elasticity of Demand (Yed), >1 refers to Normal Goods and <1 refers to Inferior Goods.
Cost Curve/ Revenue Curve
- It is a graph of cost of production as a function of the quantity demanded.
- In a free market economy, the productive firm will use the cost curve to find out the optimal point of production, where they are able to find out the maximum point of profit.
- Diminishing return scale. It refers to the marginal product of each unit will decline as the amount of the input increases whn holding all the other input stays constantly.
- In the cost curve, it have showned in 2 ways which are the Short-run Cost Curve (SRAC) and Long-run Cost Curve (LRAC). SRAC only consists of the variable and fixed cost whereas the LRAC consits all the consts.
- MC (Marginal COst) rises with a quantity of output.
- ATC curve is in U-shaped and the MC curve crosses the ATC as its minimim.
- LRAC can be divided into 3 scale.
(i) Contant Return to Scale (The proportion increased of the input may increasing the outputs in the same proportion).
(ii) Increasing Return to Scale ( Output may incresed greater proportion thn the input use)
(iii) Decreasing Return to scale ( Output may increase lesser proportion thn the input use)
- In a free market economy, the productive firm will use the cost curve to find out the optimal point of production, where they are able to find out the maximum point of profit.
- Diminishing return scale. It refers to the marginal product of each unit will decline as the amount of the input increases whn holding all the other input stays constantly.
- In the cost curve, it have showned in 2 ways which are the Short-run Cost Curve (SRAC) and Long-run Cost Curve (LRAC). SRAC only consists of the variable and fixed cost whereas the LRAC consits all the consts.
- MC (Marginal COst) rises with a quantity of output.
- ATC curve is in U-shaped and the MC curve crosses the ATC as its minimim.
- LRAC can be divided into 3 scale.
(i) Contant Return to Scale (The proportion increased of the input may increasing the outputs in the same proportion).
(ii) Increasing Return to Scale ( Output may incresed greater proportion thn the input use)
(iii) Decreasing Return to scale ( Output may increase lesser proportion thn the input use)
Monday, May 10, 2010
Friday, May 7, 2010
Updated Information for FIT =)
1. Communication VS information technology
2. WWW. VS Internet
3. Client VS Server
4. Computer Operation
5. Data VS Information
(Tips from Question 1 -5, all located in chapter 1)
6. Digital Representation Schemes (pg 2-2)
7. Number Convesion - decimal to binary, bineray hexadecimal(pg 2-2)
(Answer found in Chapter 2)
8. Vertical VS Horizontel Software (pg 3-2)
9. GVI (is GUI not GVi, pg3-3)
10. Operating Systems (pg 3-12 to 3-13)
( Question 8-10, aswer found in chapter 3. FYI, is not instead of GVI, it is GUI..)
11. Advantages of Database (pg 4-3)
17. Types of e-commence (pg 4-13)
(Answer found in chapter 4)
12. Compression and types of Compression (pg 5-5)
13. Networks - Why? (pg 5-6 to 5-7)
14. Topologies ( pg 5-12)
(Answer found in chapter 5)
18. URL (pg 6-4)
19. Web-portals (pg 6-4)
(answer found in chapter 6)
15. DSS, TPS, MIS, Expert System, ESS (pg 7-2)
16. SOLC (pg 7-3 - 7-10)
(Answer found in chapter 7. Instead of SOLC, it is SDLC)
2. WWW. VS Internet
3. Client VS Server
4. Computer Operation
5. Data VS Information
(Tips from Question 1 -5, all located in chapter 1)
6. Digital Representation Schemes (pg 2-2)
7. Number Convesion - decimal to binary, bineray hexadecimal(pg 2-2)
(Answer found in Chapter 2)
8. Vertical VS Horizontel Software (pg 3-2)
9. GVI (is GUI not GVi, pg3-3)
10. Operating Systems (pg 3-12 to 3-13)
( Question 8-10, aswer found in chapter 3. FYI, is not instead of GVI, it is GUI..)
11. Advantages of Database (pg 4-3)
17. Types of e-commence (pg 4-13)
(Answer found in chapter 4)
12. Compression and types of Compression (pg 5-5)
13. Networks - Why? (pg 5-6 to 5-7)
14. Topologies ( pg 5-12)
(Answer found in chapter 5)
18. URL (pg 6-4)
19. Web-portals (pg 6-4)
(answer found in chapter 6)
15. DSS, TPS, MIS, Expert System, ESS (pg 7-2)
16. SOLC (pg 7-3 - 7-10)
(Answer found in chapter 7. Instead of SOLC, it is SDLC)
Monday, May 3, 2010
Economy Exam Tips
1. Money, Prices, Banking & Interest : )
2. Inflation --> monetary policy (6-12 onwards to end of chapter) :(
3. Cost Curves / Revenue Curves : )
4. Comparative Advantage : )
5. Demand- Pull Inflation : (
6. Elasticity (calculation) : )
7. Fiscal Policy (How gov't can use this?) : )
8. Employment / unempoment : (
any question can email Mogan : moganswamy@gmail.com
2. Inflation --> monetary policy (6-12 onwards to end of chapter) :(
3. Cost Curves / Revenue Curves : )
4. Comparative Advantage : )
5. Demand- Pull Inflation : (
6. Elasticity (calculation) : )
7. Fiscal Policy (How gov't can use this?) : )
8. Employment / unempoment : (
any question can email Mogan : moganswamy@gmail.com
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