Natural Resources

The time, talent people available, land

building, natural resources, equipment and
Resources Human Resources
other tools on hands and the knowledge of
how to combine them
Capital

products and services

Well-being the satisfaction the time spent in family, leisure

job, security, services provided by the GOV

Production, consumption and the distribution

Get what they want

Economics People reaction
obtain goals

Unit 1 Why Gov and people act in particular ways

People act in their self interested Produce goods that benefit society
Adam Smith
GOv should not interfere the market

Social unrest
Exploitation
Class Conflict
Karl Marx
Labors should own and control means of
production

Reduce Tax Increase Spending Slowing down

Keynes How can GOV do in capitalistic market
Increase tax reduce Spending Overly active
 The Market is regulated by the law of D and S

Free market Business firms are compete freely

Private ownership exists

GOV
Goods and services
Unit 2 The structure is deliberately planned
Enterprises
The GOV decides what, how and for whom
The market is regulated by the law of D and S
Mixed to produce
Planned
The Gov influences through Macro level The production and consumption quotas are
fixed

Private ownership does not exist

 Exchanges involve the people choices

Trade-off To maximize the benefits

How much to purchase in Goods and services

Consumer How much to save for the future

When to enter the workforce

Educational attainment

What job to do Accumulated skills

Unit 3 Workers Experiences

Where to work

How much time to devote to work

What and how much to produce

Firms How to use the company funds

Look at individual, households...behavior at

conditions of market Buying habit, investment, price, S and D...

Microeconomics bottom-up approach

 Macro.policies
Objectives

Central Bank
Monetary policy
Economic growth
MS in the economy

Employment rate
MOF
Fiscal Policy
GOV revenue and spending Inflation

Unit 4
Top-down approach Complement

Look at overall economic state of an entire Interdependent

GDP, GNP, economic growth,...
country

Relationship Micro and Macro

Macroeconomics
 Cause the Supply curve shift to the left or Shift Factors
the right All qualities of Goods and services
Supply
Sellers are Willing to sells Various prices
Supply curve
Horizontal distance Excess S
Demand curve Unit 5: Supply and Specific Goods and services
Quantity Supply
Demand Willing to sell CERTAIN PRICES
Raise output

Expand production Price increases Prices

Supply Curve Graph - relationship
Maximize the P Relation ship between Price - Quantity supplies
Quantity Supply
Contract Production
Price decreases
Minimize the loss

Assuming other factors are

constant Demand tương tự như Supply

Willing to buy

P Increase Save more buy less

 financial decisions of GOV

Public finance cocept How to use the GOV budget

Tax and fees

Domestic and foreign aids

GOV Revenue
Borrowings

Development programs

Social welfare and benefits

Unit 6 Medicare
GOV spendings
Public services

Administration cost

Federal ACC The Trust Fund runs as a surplus

Borrowings Domestic and foreign investors

Public State and local GOV

Federal Reserve
US Budget Rev
Income Tax
Federal Funds
Excise tax, others
Tax

Trust Funds Payroll taxes

Specific programs only

 The inflation is high
When
Overheating economy

Reduce Spending
Tight/contractionary What
Increase Tax

Cool down the economy

What for
control inflation

Slowing down
When
Unemployment rate

Reduce tax
Loose/expansionary
Unit 7: Fiscal Policy
What
Increase GOV spending

Push up economic growth

What for
Create jobs

Macro.index

Role of GOV
Chú ý câu hỏi Deficit spending Inside Political Cosideration
Public reaction

Factors GOV sources

Other Countries Fiscal policies

Outside
Requirements of International organizations
 Raise Revenue for GOV

Limit import
Functions of Tax Adjust Trade Protect domestic production
Encourage export

Redistribute the wealth Reduce the gap the rich - the poor

Double taxtion

Disadvantages of Tax High marginal tax rate

Regressive sales tax

Wrong accounting records

Tax evasion Laundering money

Smuggling and fraud trade

Unit 8 (& unit 9) Paying benefits

Doing charity

Tax avoidance Make use of tax loopholes

Accelerated depreciation accounting

Set head office in tax heaven

VAT addition to good and services

Luxury
Excise tax Specific goods
Harmful

Income tax

Tax term Wealth tax Property

Direct tax

Indirect tax

Tax heaven Places that companies enjoy low tax

Financial arrangement that reduce tax on

Tax shelter
earnings
 Insurance Redistributes the cost of unexpected losses
Terms
The amount of money the insured pays to the
Premium
insurer in case of risks

Join insurance

The insured Pay insurance premium

Send claim to the insurer in case of loss

Right and responsibility
Provide insrurance

The insurer Collect insurance premium

Settle the claim, pay compensation

Unit 10 Predict the loss

Ensure corporate and private assets

Collect insurance premium, redistribute the

Activities of Insurance cost of loss

Role: loss control and risk management

Use Insurance pool to satisfy the demand for

funds

Provide the insured peace of mind

Help people and firms redistributes funds for

emergency, raising chance for investment

Importance of insurance Enable the insured to cover losses

Limit risks, reduce economic waste

Mobilize idle funds in the economy

 anything accepted

Money by general costent

economic exchange

means anything accepted for goods and

services exchanges

Medium of exchanges settlement of debts

and money is the most common

exchanges

measures things offered in the market

Measure of value
prices are fixed
Functions
Unit 11 unit of accounts
accounts are kept

Can be used to pay in the future

Store of value
buying to day or saving for the future

Don't have to pay immediately

Standard of deferred payment
Developing of installment buying

The face value equal to material contained

in it
Commodity
useful goods

Types Use the face value / denomination

The face value is higher than the cost

Token production and real value serve not as
money

Coin and note

 Reserve requirement
Open market operation

the amount of deposit the bank have to

reserve buy and sell GOV securities such as bonds

Unit 12
the interest rate the Central bank charges for overheating
loan when
inflation is high

increase reserve requirement and discount rate

Discount rate Restrictive
what
sell bonds

reduce lending capacity

what happened limit investment, consumption

MS decreases

when slowing down

reduce reserve requirement

what reduce discount rate

Expansionary
buy bonds

The bank increases lending capacity

what happened people are encouraged to borrow and spend

MS increase, total demand shift to the right

Types of policies
 the rate at which
Exchange rate
the national currency can be exchanged

Concept different national currencies are exchanged

Is over-the-counter market not organized market

telephone
means of transactions
Features computer

commercial banks
Foreign Exchange market
international transactions different transactions the branches all over the world

the agents

encourage investment and exchanges of

Unit 14 Gain the demand of foreign currencies
goods and sevices

Support investment in financial and real

Functions assets across the border

Support tourism and diplomacy

Use in macro.tool

gain the demanded foreign currencies

Customers
multinational companies, international com,
GOV, importing and exporting com,...

exchanges foreign currencies on their own

accounts

Dealer earn P on the difference between the buying

Participants of the market and selling rate

Commercial banks and the branches, agents

Specialist com

Market maker Price leader Intermediates among the banks

Brokers
provide the best dealing rate

Earn P on the commission of the services

 undertaken for an actual exchange of
currencies
SPOT
within 2 business day
Unit 14: types of
transactions
further in the future
FORWARD involve the delivery date
1 year or more ahead
 the market
Concept
sell and buy real financial assets

borrowers
intermediates
lenders

Unit 15: Fiancial Functions promote

investment

Market economic growth

adjust MS in the economy

Debts and Equity Markets

Credit market
Primary and Secondary Market
Capital Market Medium and long term credit and stock
Theo SGT
Securities market Stocks and bonds
Exchanges and OTC market
Structure Money market Short term loan
Money and capital market
Foreign Exchange market
 Risk - Stocks
Bonds

Dividends are not fixed, depend on the annual

Represent the corporation's debts profit

No right to vote, supervise the company In case of bankruptcy, shareholders are the last
management to get back the funds. Maybe lose all

Receive fixed interest rate and principal Have to sell if the shareholders want to get
payment in maturity date back the fund

Unit 15: Bonds and

stocks
Receive dividends, can benefit from the
increases in net income and asset value of the
company

Voting right, supervise the company operation

Represent the corporation's owner

Stocks
 Bigger
Transactions of debt instruments
Debt market
Bonds
Debt and equity market
Equity markets buy and sell common stocks

Conduct trades
Exchanges (organized, listed, incorporated)
on the trading floor
Exchanges and OTC market
Over - the - counter Conducts among independent dealers
Unit 15: financial
structure newly issued securities
Primary
initial buyers by the issuing organizations
Primary and secondary market
Secondary previously-issues are resold

Short term loan

Money and capital Market Money

Medium and long term credits
Capital
Stocks
 Underwrites newly issued securities

Transactions The investment Bank Guarantees a price for a company's securities

Primary Market Sell to the public

Functions Raise new funds for the issuing corporation

Unit 15
The brokers
Transactions
The dealers
Secondary Market
Ensure the liquidity of Financial assets
Functions
Determine the securities price set on the
primary market