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Day: April 7, 2017

How People Make Economic Decisions

How people make Economic decisions
David Cosme
ECO/212 Principles of Economics
July 6, 2011
William Akamine
How people make Economic decisions
Economics played a major role in what, when, where, and even how consumers purchase products. When a consumer wants to buy a product, he or she thinks about the money, before spending. The buyers may believe that spending that money is not worth it. Consumers think about the cost of what they give up in that specific product or item. The buyers are rational thinkers and wait for the opportunity to arise before spending their hard earn cash on products or items. Many consumers respond to incentives when wanting to buy a product and wait for a big sale to spend the money.
Marginal benefit is an additional satisfaction or utility that a person receives from consuming an additional unit of a good or service. A consumer is willing to pay to consume the additional good or service provided. When the High Definition Televisions came out many consumers purchase the televisions without considering the fact on the long term effect. Many consumers did not do research on the televisions to make sure that the television were durable, easy to maintain, and easy for the consumer to use. The buyers need to be patient and wait for the special sales or deals on the products.
The United States Economy needs to be dealt with by the government and the people need to express their concerns about how this affects the consumers. The economy has to be revamp and give the consumers what they want. Many of the buyers just want to spend money on any products without possessing that risk in the long term effect on maintenance. One prime example of a money-saving issue is the gas prices. The government has enough oil reserves all over the world and within the United States itself. The United States government does not need to export oil from other foreign countries, but it does. When the government purchases the oil this raises the prices up and hurts the Unites States economy. Congress can mandate that oil reserves be use instead of the foreign resources. Doing this action would help the economy to drop gas prices and make consumers use more of the product. The consumer needs to focus on how we spend our money and do not let the sellers fool us out of our money.Reference
Hubbard, G. R. (2010). Economics: Foundations and Models (3rd Ed.). Cincinnati, OH: Prentice Hall.

April 7, 2017     0 Comments

Coparison of to Spainsh Cultures

Cultural Similarities and Differences: Mexico and Venezuela
Cultural similarities and differences of Mexico and Venezuela are at times difficult to measure and sometime to observe if not immersed within the two cultures. Each country is proud of their cultural heritage and are, to their people obviously unique. Mexico and Venezuela are Spanish speaking countries with each possessing their own dialect and inflection on the language. This is the same with many of the customs found in each of these countries. We will examine four areas; Visual Arts, Dance, Music, and Theater to illustrate the many similarities and differences within each of these cultures.
Visual Arts
Visual Arts in Mexico and Venezuela are very important in both countries because it focuses and emphasize their culture, their geographical profile and history. Through its paintings and galleries it can be express on how important their country is to them. For example muralists, Diego Rivera from Mexico has been identifying as the best painter for its 1933 mural titled ???Man at the Crossroads.??? Another famous artist in Mexico who is known for her paintings that reflect realism, symbol, and indigenous culture of Mexico is Frida Kahlo; she expresses her physical connection to her country through her paintings. In Venezuela Rosalba Gudino, is known as a fused glassed artist. Milan Kriz whom became a citizen of Venezuela in 1983 and lives in Caracas Venezuela became a popular artist. His art pieces focus on a wide spectrum of classical and modern raw materials and techniques. Some sculptures are made from the following materials: wood, marble, coral, bronze, and even epoxy resin and bronze-ready positive originals in clay. The majority of his paintings are made of oil on canvas and oil on formic. Visual arts are very traditional in both countries because the traditions of their countries that they are proud off and express it through their arts and sculptures. Dance
Dance is considered a form of art which changes between different cultures and used as a way to express something, tell a story, something spiritual or even just for plain exercise. Cultures often change from country to country. However they can have similarities as well. Mexico and Venezuela both have different forms of dances that are considered traditional due to their culture.
Mexico like Venezuela have dances that give the country character that??™s helps the country??™s desire for a national identity. Mexico dances are made up by European and African heritages. They represent the important part of the country??™s pre-Hispanic history. Unfortunately, most these dances were eliminated or modified. However a few of the dances made it through the modification in which they have become popular which ended up creating the dances nationally and internationally especially after the Mexican War of Independence and the Mexican Revolution.
Just like Mexico, Venezuela??™s dances form an important part of the Venezuelan culture. Most of the dances in Venezuela were adapted from Europe in the 19th century. The national dance of Venezuela is Joropo which consists of 36 different steps while also being a dance for couples. Salsa is also one of the most popular dance forms in this country. However, salsa is also a popular dance form in Mexico as well.
Both culturally and historically, Mexico and Venezuela along with other countries in Central America, share much of the surrounding regions such sand dances and surrounding regions.Music
Mexico and Venezuela loves music no matter what part of the country you are in. With the research found Mexico and Venezuela have many similarities and very little differences when it comes to music. Each country embraces and celebrates their cultures music in their separate ways. Just as each country has their own dance, they also have their own music t go along with that dance.
Due to both countries being Spanish speaking countries, all of the lyrics to the music in both countries are in Spanish. Another similarity is the different and exotic instruments that are used in the countries music. Each country uses instruments that we may not use here in the United States.
When it comes to the differences in music, each country has their own tradition or commonly known music. For Mexico, the traditional music would the mariachi music, (“Mexican Music & Dance”,? 2012). For Venezuela their commonly known music is their own salsa, merengue and other imported styles, as well as the distinct? joropo and? llanero music, (“Carnaval.com Presents… Vz Music”,? 2006). Each instrument is used help bring that significant sound to each style of music. For example, with the mariachi music, you have the trumpets, guitars and violins that stand out to make that mariachi sound. With the music in Venezuela you have the Afro-Venezuelan instruments to give it that Venezuela n sound.
Theater
Early Theater in Mexico was developing in Spain around the time of the Spanish invasion. Spain continued influencing theater up until the Mexico revolution in the early 20th century. Around the early 19th century tent show was the new normal, these was mainly comedy plays it perfect opportunity for new thespians rather than performing in old theaters. In 20th century nationalism guided the Mexican Spanish to be the language use for writing plays. Modern day Mexican theater uses more dramatically Style Theater provided by different cultures and identities thru Mexico. This new international style of theater replaces the folklore and violence performances of previous century that was outdated.
Venezuela??™s theatre tradition began in the late 1700s and has been progressively growing ever since. The national theatre became established some thirty years ago, and is now based in Caracas. Venezuela is not noted for its cinema; few Venezuela organizes Festival International for theater in April every year. The festival is being held since 1976 and is rated as one of the best of the cultural events in Venezuela. It is marked by performances of some of the top theatre groups of Venezuela and Latin America. Some of the important theatres, which serve as the venue of these performances, are Teatro Teresa Carreno, Alteneo de Caracas and Teatro El Paraiso. films are made and foreign films are favored.
Conclusion
Mexico and Venezuela both share similar values and customs that are steeped in both countries cultural heritage that has been handed down from generation to generation. These are very proud people who embrace their historic past and intertwine this past with today??™s modern society. While Americans tend to move forward and leave the past behind it is on the contrary that these two countries strive to maintain their past way of life and bring it into their daily lives. Mexico and Venezuela are two countries with a proud heritage that share both similarities and differences making each unique in their own way of life.
References
Abenteuer (N.D) Retrieved from http://www.abenteuer-venezuela.de/eng/Facts%20About%20Venezuela%20eng.htm
Carnaval.com presents… VZ Music.? (2006).? Retrieved from http://carnaval.com/venezuela/music/
Mexican Music & Dance.? (2012).? Retrieved from http://www.elmonterey.com/extras/music-and-dance/
Milan Kriz (2005) Retrieved from http://www.milankriz.com/vitae_frames.htm
Venezuela Culture (2012) Retrieved from http://www.mapsofworld.com/venezuela/culture
What Latin America.com (N.D) Retrieved from http://www.whatlatinamerica.com/latin-theatre/mexico-theatre.html
Wikipedia Folk Dance of Mexico (2012) Retrieved from http://www.en.wikipedia.org/wiki/Folk_dance_of_Mexico
40 Vacations (N.D) Retrieved from http://40vacations.com/venezuela/culture.php

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How People Make Economic Decisions

The first principle of economics people face trade offs when we making decisions requires trading off one goal against another. The second principle is the cost of something is what you give up to get it. Rational people purposefully do the best they can to achieve their objectives. The fourth principle is people respond to incentives. Because rational people make decisions by comparing cost and benefit they respond to incentives. A few months ago when I was deciding wether I wanted to go back to school I compare the marginal cost and the marginal benefit. I determine the benefit of going back to school and obtaining my bachelors degree would be better job opportunity better paying jobs and most important I would be a better role model for my children. These benefits out weight the marginal cost that is financial and time that I would have to allocate to school.
I believe the incentive that would of kept me away from going back to school would of been a multimillion dollar job offer, or the need to spend more time with my children, then the opportunity cost of going to school would of been to high. I figure that this was the right time for me to go back to school because my children are older and don??™t need me as much as when they were smaller. I want to show them that is possible to accomplish anything they set their minds to do, and it??™s never to late to accomplish the goals that you set in life.
The principles of economic affect decision making people face trade-offs among alternative goals and people change their behavior in response to the incentives they face. Trade can be mutually beneficial and government can potentially improve markets outcomes if there is some market failures. The economy as a whole are that productivity is the ultimate source of living standards and that society faces a short-run trade-off between inflation and unemployment.
In conclusion when we make economic decision we have to give up something to receive another we compare the cost and benefit when we make our decision and we tend to think rational and incentives play a strong role in our decisions.ReferencePrinciples of Economics.(4th ed.)Mankiw N. G. (2007)
How People Make Economic Decisions PaperHow People Make Economic Decisions Paper

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Cooprate Finince

Corporate Finance (Fin622)???
Assignment No. 1 Marks: 20
Being the finance manager of XYZ Company, you are to select one project of two available options i.e. Project A and Project B. The relevant cash flows for both the projects are summarized in given table.
Project A
Project B
Initial investment
Rs. 57,000
Rs. 54,000
Year(n)
Cash inflows (CFn)
Cash inflows (CFn)
1
Rs. 20,000
Rs. 22,000
2
20,000
20,000
3
20,000
18,000
4
20,000
16,000
Assume the discount rate to be 14 percent.
Required:
??? Calculate the payback period of each project.
??? Calculate the Net present value (NPV) of each project.
??? On the basis of results of pay back period and NPV, which project would you recommend to your company and why |
???Corporate Finance |
Q.1: Calculate the payback period of each project.
For Project A
Year | 0 | 1 | 2 | 3 | 4 |
Project A | -57,000 | 20,000 | 20,000 | 20,000 | 20,000 |
The formula of Payback period is,
PP=Io/Ct
PP=57,000/20,000
PP=2.85years
For Project B
Year | 0 | 1 | 2 | 3 | 4 |
Project B | -54000 | 22,000 | 20,000 | 18,000 | 16,000 |
Payback period is lies between year 2 and year 3 .Sum of money recovered by the end of the second year
= (22,000+20,000)
= 42,000
=54,000 ??“ 42000
= 12,000
PP= (2+12,000/18,000)
PP=2.67years
Q.2: Calculate the Net present value (NPV) of each project.
For Project A
Year | 0 | 1 | 2 | 3 | 4 |
Project A | -57,000 | 20,000 | 20,000 | 20,000 | 20,000 |
NPV=Cf [(1/i-1/i (1+i)]-Ct
NPV=20,000[(1/.14 – 1/.14 (1+.14) ^4)]-57,000
NPV=20,000[(7.1429 ??“ 1/ 0.2365)] ??“ 57,000
NPV=20,000 (7.1429 ??“ 4.2283) ??“ 57,000
NPV= 20,000 *(2.9146) ??“ 57000
NPV=58291 ??“ 57,000
NPV=1291
For Project B
Year | 0 | 1 | 2 | 3 | 4 |
Project B | -54000 | 22,000 | 20,000 | 18,000 | 16,000 |
NPV= [Cf1/ (1+i) + Cf2/ (1+i) ^2+ Cf3/ (1+i) ^3+ Cf4/ (1+i) ^4] -Ct
NPV= [22,000 / (1+.14) +20,000/ (1+.14) ^2+18,000/ (1+.14) ^3+16,000 / (1+.14) ^4] – 54000
NPV=19298+15389+12150+9473-54000
NPV=56310 ??“ 54000
NPV=2310
Q.3: On the basis of results of pay back period and NPV, which project would you recommend to your company and why
As per the Calculation According to the Payback Period method we should have to take Project B Because it has less payback time as compare to Project A.
As far as the NPV is concern the both the projects is NPV > 0, so both Project could be possible to take , but the Project are Mutually exclusive then we should take the project that has the Greater NPV so that is the Project B.

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