WDW101Y1 Lecture Notes - Lecture 1: Defined Benefit Pension Plan, Pension, Digital Enhanced Cordless Telecommunications
1 Mar 2016
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Document Summary
Economic efficiency- making effective use of scarce resources. Competitive markets and efficiency: one of the fundamental theorems of mainstream economics is that is all product and labor markets were perfectly competitive, the outcome would be efficient. Wealth survey- statistics canada survey of financial security. Since 1970, there have been seven surveys (1970, 1977, 1984, 1999, 2005, 2012) Surveys occur about once every seven yrs (except missed 1992) the survey from 2015 just being published, to analyze the financial situation since 2012. Real estate(47%)+ employer pensions(22%) + other assets (31%) Other assets: stocks, bonds, mutual funds, bank accounts, rrsps . Mortgage debt on principal residence and other real estate (77%) Consumer dect (23%)= credit card debt/ vehicle loans/ bank loans including lines of credits/ other debts. Defined benefit pension plan- specifies pension as a percent of final years earnings - employer has to responsible to ensure that the company has money to pay the pension in future.
