Introduction to Economics Essay Example | Topics and Well Written Essays - 500 words

Introduction to Economics - Essay Example Francis enjoys an absolute advantage. Why would there be an advantage to turning either task over to Phil and specializing? The answer comes from the Ricardo Theory that was put forth by the 19th century economist David Ricardo (The history of economic thought n.d.). The theory addresses the problem of comparative advantage. As can be seen from the table the cost of a phone call for Phil (.125 statements) is less than the cost of a call for Francis (.2 statements). However, the cost of a statement for Phil is 8 calls, but for Francis it is only 5 calls. Francis can produce a statement for fewer resources than Phil, and Phil can produce a call for less than Francis. They should therefore specialize. Phil should answer the phone and Francis should do the financial statements. This study was undertaken to analyze the effect that demand has on the US real estate market. The project studied the housing costs in 6 major cities. It was theorized that three factors; Demand, Area Income, and Value would affect housing. By evaluating the median housing price, the median incomes, and the housing available at the median price we were able to show the influence of demand. It was found that area income had no effect on housing cost. Likewise, we found that the higher cost areas provided less housing than the lower cost areas. The study concluded that the market was almost exclusively demand driven. The 6 major cities that are listed on the graph in Figure 1 display their median housing cost. It ranged from a high in San Francisco CA of $726,700 to a low in Austin TX of $170,900. The other 4 cities, New York, Boston, Seattle, and Chicago fell in the middle. If there were an increase in cost is due to higher local area wages, it would be expected that all cities would spend about the same percentage of their wages for housing. However, the graph, indicated by Relative % of income, shows that people in San Francisco spend a proportion of their

Project Finance (Project Management) Essay Example | Topics and Well Written Essays - 1000 words - 1

Project Finance (Project Management) - Essay Example â€Å"Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure where project debt and equity used to finance the project are paid back from the cashflow generated by the project† (Project Finance Definition). Simply speaking, project finance is the process of accumulation of money and its investment in some particular project. Usually, there are two types of project finance – equity financing and debt financing. The debts and an interest rate are paid from the cash flows, generated by a project. Generally, project finance can be called as a part of project management. Project finance is usually a long-term process. The reason for it is that the projects financed are long-term as a rule. This process begins from looking for the ways of a project’s financing and ends with paying dividends to stakeholders and investors. . â€Å"It takes a lot more than a good idea to develop a successful manufacturing venture. You need to know where to find the resources, both financial and technological, and you need to find the right people with the right skills to do the job. Knowing where to look for these resources can save you precious time and money, and earn you some valuable partners in the process† (Sudarkasa). Identification and development of a project – any project should be presented to potential investors in some formal way. They should be able to weigh up all the pros and cons for a project. This information is needed to make a final decision whether to invest or not in a project; Determination the feasibility of the project – the main factor for investors is whether a project is able to bring social and economic benefits or not. That is why a vivid plan how to earn money should be drawn and presented to all the stakeholders. These two stages are among the most important in the process of