ECON 104 Lecture 4: Firms
Document Summary
International trade redistributes gains from trade same as government policies. Partnership: owned jointly by 2+ people and not organized as a corporation, still unlimited liability, addition of additional owner brings in more money to grow a firm, still risky af. Legal form of business that provides owners with protection from losing more than their investment should the business fail. Inverse relation between bond yield and current price. Stock: fi(cid:374)a(cid:374)(cid:272)ial se(cid:272)urity that represe(cid:374)ts partial o(cid:449)(cid:374)ership of a fir(cid:373). Investors receive a capital gain (cid:449)he(cid:374) a fir(cid:373)(cid:859)s share pri(cid:272)e rises. Gdp: market value of all final goods and services produced in a country during current period of time, typically a year, gdp = p1*q(cid:1005) + p(cid:1006)*q(cid:1006) et(cid:272). et(cid:272). + p(cid:374)*q(cid:374: something not too great about gdp is the constant changing value of dollar makes it hard to take figures from different years and compare them.
