One of the most important financial decision young people face is how to plan financially for the future. There appears to be a reality gap between what people expect their life post-retirement to look like compared to what they are actually saving for. Instead of hoping that one has saved enough, there are very simple calculations that can be done to determine what your saving behavior should look like. The objective of this paper is to use the properties of the exponential constant e, to determine what a responsible saving is.
Considers how income confines household spending. This paper focuses on how applying mathematical techniques can unearth the long-run relationship between income and consumption. This paper also analyzes how income, consumption, and disposable income are effective by both downturns and up-cycles in the economy.
The main topic of this article is that despite increases in in living standards, wealth is not distributed evenly amongst individuals in a capitalist society. This is why the terms wealth and income can not be used interchangeably. In order to measure this inequality, one must use the Lorenz Curve and Gini Coefficient. This article walks you through the methodology of applying these mathematical theories to accurately measure the difference in wealth.
Economics can most certainly be fun- this case study proves it! Here we explore the polarization within professional sports leagues like football. One can use Economic Theories to measure competitiveness between teams by using the concentration ratio. Furthermore, it is clear that top teams have advantages like better recruiting and methods of play. These and other factors can widen the gap between top teams and other teams in the same league putting the odds in favor of the top teams. Probability and betting the odds can be measured for Insurance as well using Conditional Probability.
Measuring the GDP on a regular basis helps determine how well the economy is doing and where it may be going. Taking the average GDP over a period of time can measure how well the economy grew. We can also see where it was weaker and stronger. Economics show a slight change in GDP long term can have a great effect on standard of living.