POLS 1150 Lecture Notes - Lecture 16: Income Statement, Accounting Equation, Asia-Pacific

• School: University of Guelph
• Department: Political Science
• Course: POLS 1150
• Professor: Mark Yanisziewski

Document Summary

For profit business: produce or sell products to make a profit, profit = revenue - expenses, not for profit business, provide goods and services but do not seek a profit, receive money in ways such as donations. If the price is higher than the equilibrium, there is a surplus. If the price is lower than the equilibrium, there is a shortage. Trade: gdp/gnp - the percentage increase in an economy"s total output, the percentage increase in per capita output, cpi/inflation rates - prices increasing. If there is a state of high inflation, there is much less incentive to save, as your money will buy more now than it will after inflation. Labour market - employment, unemployment, participation rate (those of working age) Interest rates - high interest rates force savings and reduce borrowing; low interest rates decrease savings and increase borrowing. International trade - balance of trade (value of all exported products minus imported products).