AFM131 Study Guide - Midterm Guide: Capital Accumulation, Opportunity Cost, Marginal Revenue

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Bob Sproule

Document Summary

50 multiple choice: problem sets, few calculator questions (bring a calculator, answer question to the concepts. Oc: human capital accumulation, education , health, ensuring people are at maximum performance, physical capital, saving investment, advances in technology, cars instead of horse carriage. Absolute advantage vs comparative advantage: absolute: can do anything and everything, is more productive than anyone else in several or every activity, comparative: person can perform the activity at a lower cost than anyone else. Elasticity- the change in demand with regard to pricing practical significance of elasticity. In a position to give sound advice to a company: calculations of price elasticity of demand, we relate elasticity to total revenue, total revenue, marginal revenue.