Different Types of Interviews Used in the Business Organizations
Namibia Regional Economics: FIN-111
Assignment 1
Question 1
a) Opportunity and sunk cost
Opportunity cost is the value of the next best alternative that must be sacrificed when you make a choice and it applies everywhere.
For Example:
If a person chooses to use vacation time to travel rather than to do renovations on the house. Thus, the opportunity cost of the tour could be said to be the forgone home renovations.
Sunk costs are costs that were incurred in the past and cannot be recovered once spend e.g.
If a person spends N$10,000.00 to purchase a vehicle, the value of the vehicle, after five years will be less than the amount spend to purchase it. The N$10,000.00 is cost that is “sunk” and cannot be recovered once spend.
The opportunity cost can be seen as value and sunk cost as money/resources.
b) Inflation and interest rates
Inflation is a rise in the general level of prices of goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money.
Interest rate is the rate, normally expressed as percentage, at which interest is paid by borrowers for the use of money that they borrowed from a lender.
For example, if you borrow money from the bank to buy a house, the bank receives interest rate at a predetermined rate for accepting to use the funds and instead of lending it to the borrower.
c) Macro and microeconomics
Macroeconomics is a part of economics that deals with the performance, structure, behavior and decision-making of an economy as a whole.
In contrast, Microeconomics is a part of economics studying the behavior of individual households and firms in making decisions on the allocation of limited resources, how these decisions and behaviors affect the supply and demand of goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.
d) GDP and GNI
GDP (Gross
Assignment 1
Question 1
a) Opportunity and sunk cost
Opportunity cost is the value of the next best alternative that must be sacrificed when you make a choice and it applies everywhere.
For Example:
If a person chooses to use vacation time to travel rather than to do renovations on the house. Thus, the opportunity cost of the tour could be said to be the forgone home renovations.
Sunk costs are costs that were incurred in the past and cannot be recovered once spend e.g.
If a person spends N$10,000.00 to purchase a vehicle, the value of the vehicle, after five years will be less than the amount spend to purchase it. The N$10,000.00 is cost that is “sunk” and cannot be recovered once spend.
The opportunity cost can be seen as value and sunk cost as money/resources.
b) Inflation and interest rates
Inflation is a rise in the general level of prices of goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money.
Interest rate is the rate, normally expressed as percentage, at which interest is paid by borrowers for the use of money that they borrowed from a lender.
For example, if you borrow money from the bank to buy a house, the bank receives interest rate at a predetermined rate for accepting to use the funds and instead of lending it to the borrower.
c) Macro and microeconomics
Macroeconomics is a part of economics that deals with the performance, structure, behavior and decision-making of an economy as a whole.
In contrast, Microeconomics is a part of economics studying the behavior of individual households and firms in making decisions on the allocation of limited resources, how these decisions and behaviors affect the supply and demand of goods and services, which determines prices, and how prices, in turn, determine the quantity supplied and quantity demanded of goods and services.
d) GDP and GNI
GDP (Gross