Tag: opportunity cost

Mankiw’s 10 Principles of Economics

Post author By Tom Spencer
Post date November 23, 2011
3 Comments on Mankiw’s 10 Principles of Economics

Economics is about decision making in situations of scarcity ECONOMICS is the study of how individuals, firms and government make decisions to manage scarce resources. What does this mean exactly? Professor Greg Mankiw teaches economics at Harvard University and is the author of a popular economics text book called Principles of Economics which is used at many Ivy League […]

Tags Economics, gains from trade, government regulation, Greg Mankiw, incentives, inflation, Mankiw's 10 Principles of Economics, marginal benefit, marginal cost, opportunity cost, standard of living, tradeoffs, unemployment

Frameworks

NPV: Net Present Value

The NPV of an investment is the present value of the series of cash flows generated by the investment minus the cost of the initial investment 1. Net Present Value (NPV) explained THE net present value (NPV) of an investment is the present value of the series of cash flows generated by the investment minus the […]

Tags case interview, cash flow, consulting, consulting framework, Consulting Frameworks, cost of capital, discount rate, discounted cash flow, framework, interview preparation, net present value, npv, opportunity cost

Frameworks

Cost Benefit Analysis

The cost benefit analysis is a basic analysis framework that involves weighing up the costs and benefits of one course of action against another IN YOUR consulting case interview you will most likely be required to make a recommendation on a hypothetical business problem. Understanding how to […]

Tags case interview, consulting, consulting framework, Consulting Frameworks, cost analysis, cost benefit, cost benefit analysis, costs and benefits, fixed cost, framework, interview preparation, opportunity cost, sunk cost, variable cost