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11 Cards in this Set
- Front
- Back
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Microeconomics and macroeconomics is different. How?
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Micro - people, industries.
Macro - country, policy, interest rates. |
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What are the goals of macroeconomics?
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1. Output
2. Employment 3. Moderate inflation. Free markets. 4. Foreign exchange. Imports exports. |
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Demands are elastic. What factors affect demand?
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Prices, income distribution, tastes, advertising, etc.
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The demand for all products is not equally elastic. What factors influence elasticity?
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1. Luxury or essential?
2. Can be postponed? 3. Substitutes? 4. Tradition? 5. Many uses or few? 6. Percentage of income? 7. Price of the product itself. |
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Why do we need to forecast demand?
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Smooth production.
No waste of resources. No scarcity of resources. Reduce costs. Customer satisfaction. |
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What are the advantages of qualitative forecasting?
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Can account for recent trends, fashion fads, societal changes.
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Disadvantages of qualitative forecasting?
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Biased, low accuracy
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What are the advantages of quantitative forecasting?
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Process large amounts of data
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Disadvantages of quantitative forecasting?
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Often data is not available. Reduces accuracy.
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How to analyse time series?
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Trends.
Cyclic changes. Seasonal changes. Random forces. |
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Formula for exponential smoothed forecasting?
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F(t) = a*D(t) +(1-a)*(
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