APS111H1 Lecture Notes - Lecture 22: Interest Rate, Macroeconomics, Compound Interest
5 Nov 2016
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Document Summary
Reason to have a law: to create a safe and equitable society, and to implement social policy. Legislation regulation standards policy guideline. Break-even point (payback period/payback time) is the quantity/time when the accumulated profits cover the total cost. Excess benefit [profit] = incoming benefits [revenue] (all) costs. Value of stored money is lost by two ways: inflation and interest. Engineering economics is determined as microeconomics but largely influenced by macroeconomics. Internal cost is the cost of running the business while the external cost is leaded by production/use/disposal of a technology such as air pollution and traffic. Internal revenue is the income gained by the business while the external revenue is the social benefits such as positions of jobs. Time value of money is a calculation to predict the value of a unit of currency (money) in the past or future. Inflation and interest rates change the value of money over time.
