FINA6003 – Economics (L3 – 18May)

  1. Contents – Summary
    1. L1 – Notes
    2. L2 – Notes
  2. Contents – Detailed
  3. Follow-ups
    1. Research applications of Elasticity of Demand and Pricing Strategy
  4. References
FINA6003 – Economics (L3 – 18May)

FINA6003 – Economics (4&11May – L1&L2)

  1. Learning objectives
    1. discuss fundamental economic problems and the basic methodology used in economics;
    2. apply microeconomic principles to fundamental business decisions;
    3. describe the macroeconomic environment and the dynamics behind the functioning of the economy;
    4. analyze current events (eg. gov policies) in the world economy and their implications for business;
  2. Assessment
    1. assignment 1 (10%) – textbook as a good source to better answering assignment
    2. assignment 2 (10%)
    3. Mid-term test (20%)
    4. Final exam (60%)
  3. Contents
    1. Introduction to Economics (Ch1 & 2)
      1. Basic economic problems and concepts
      2. Models, methodology and value judgement
      3. Choice and opportunity cost
    2. Supply, Demand and Equilibrium (Ch3, 4 & 5)
      1. Demand and Supply Model
      2. Elasticity of demand and supply
    3. Theory of Consumer Behavior and Demand (Ch21)
      1. Utility theory and Consumer Equilibrium
      2. Consumer choices and changes in prices
      3. Income and price constraints
    4. Production Theory (Ch13)
      1. Factors of production
      2. Firm’s production decision
      3. Costs of production
    5. Market Structure I (Ch14)
      1. Perfect competition
      2. Short run equilibrium
      3. Long run equilibrium
    6. Market Structure II (Ch15, 16&17)
      1. Monopoly
      2. Oligopoly
      3. Monopolistic competition
    7. Introduction to Macroeconomics (Ch23 & 24)
      1. National Income Accounting: GDP and GNP
      2. Circular flow of income
      3. Cost of living measurement
    8. Simple Keynesian Model (Ch26)
      1. Consumption and investment function
      2. National income determination and Multiplier effect
      3. The role of government expenditure and foreign trade
    9. Inflation and Unemployment (Ch28 & 35)
      1. Causes of inflation
      2. Types of unemployment
      3. Trade-off between inflation and unemployment
    10. Money, Banking and Credit (Ch29)
      1. Nature and functions of money
      2. Money and credit creation
      3. Instruments of monetary policy
      4. Debates in macroeconomics, Keynesian, Monetarism, Neo-classical theory
  4. L1 contents (L1 notes Slide 1-33)
    1. Introduction to Economics (Brief)
      1. Basic economic problems and concepts
      2. Models, methodology and value judgement
      3. Choice and opportunity cost
    2. Introduction to Economics (Detailed)
      1. Microeconomics – behavior of individual decision-making unitsfirms and household
      2. Macroeconomics: behavior of aggregates, such as price level, national income (GDP), economic growth, inflation and employment;
      3. Two Methods of economics
        1. Positive (description)
          1. explains objectively without making subjective judgements about the outcomes;
          2. positive statements are testable;
        2. Normative (judgement)
          1. analyze and evaluate  with recommendations based on subjective judgements;
          2. Normative statement concern what ought to be (eg. should); never testable;
      4. Using assumptions to simplify (easier to understand)
        1. aid to the analytical process by using models
        2. Models often contain functions, equations and graphs / diagrams;
        3. Ceteris paribus: other things being constant;
      5. The fundamental economic problem
        1. Scarcity -> choice > depends on Opportunity Cost (by Production Possibility Frontier Model)
      6. Scarcity
        1. we want more than we have, insufficient;
        2. our wants are satisfied with goods and services;
        3. a good is an entity that is desired by a least one person;
      7. Good
        1. Economic or scarce good
          1. insufficient to satisfy our want; prefer to have more than we have at a price of zero;
          2. eg. Fresh air in HK; Air in space / underwater;
          3. Capital goods & consumer goods
            1. Consumer goods: produced for present consumption, eg. bread
            2. Capital goods: used to produce other goods or services over time, eg. machines / equipements / computers;
            3. Investment: using resources to produce new capital for future consumption; forgone present consumption;
          4. Competition
            1. Price competition: good is allocated to the one who bids the highest price for it;
            2. Non-price competition: choices are resolved by criteria other than price, beauty contest / university entrance exam, queuing…
            3. Mixed competition: concert ticket
        2. Free good
          1. sufficient, no problem of scarcity, eg. Given by nature;
          2. do not prefer if its price is zero;
          3. eg. Fresh air in New Zealand;
      8. Economic Systems
        1. Market Economy: allocates resources through decentralized decisions; Price is a major mechanism in allocating scarce resources;
        2. Planned Economy: resource allocation through central planners; eg. N. Korea
        3. Mixed Economy: government & private sector, eg. all economies including USA / HK
      9. Opportunity cost (OC = explicit cost + implicit cost)
        1. making choice
        2. highest valued option foregone to an act
        3. Rank the 1st & 2nd among choices
        4. money + non-money term
        5. No choice -> no opportunity cost
        6. Change in choice -> change in opportunity cost
        7. eg. go swimming instead of studying
          1. Money: Transport cost & admission fee
          2. Non-money: Chance to get a higher grade
    3. Book reading (Ch1&2)
      1. Ch1
        1. the Greek word oikonomos, “one who manages a household”
        2. Scarcity – the limited nature of society’s resources
        3. economics – the study of how society manages its scarce resources
          1. study of how people make choices; explain and predict human behavior;
        4. Ten principles of Economics
          1. People faces trade-offs in marking choices, eg. “efficiency and equality”, “guns and butter”, “a clean environment and a high level of income”;
            1. equality / welfare policy: reduces the reward of working hard;
          2. The cost of Something is what you give up to get it
            1. Opportunity cost:
              1. what every must be given up to obtain some item;
              2. money + non-monetary;
              3. rank and consider the 2nd choice;
          3. Rational People think at the margin
            1. marginal change: a small incremental adjustment to a plan of action;
            2. logic of marginal thinking (marketing), Comparing
              1. Marginal cost: amount increases if there is extra item;
              2. Marginal benefit
                1. willingness to pay is based on: marginal benefit that an extra unit of the good would yield; depends on how many units a person already has
                2. As diamond is rare, people consider the marginal benefit of an extra diamond to be large;
          4. People respond to incentives (related to cost and benefit)
            1. punishment / reward that induces a person to act;
            2. Incentives for policymaker: eg. gasoline tax affects what people choose to drive, where they live, frequency to use public transportation…
              1. if a policy changes incentives, it will cause people to alter their behavior;
                1. not only consider the direct effect, but also the less obvious indirect effects that work through incentives;
              2. For instance, to enforce a auto-safety law (Sam Peltzman’s study at 1975), little change in number of driver’s deaths, but an increase in accident and pedestrian deaths;
          5. Trade can make everyone better off
          6. Markets are usually a Good way to Organize Economic Activity
          7. Governments can sometimes improve market outcomes
            1. Governments enforce rules
            2. Market failure
              1. market power
              2. externality
          8. A Country’s Standard of Living Depends on Its Ability to Produce Goods and Services
          9. Prices Rise when the Government Prints too much Money
          10. Society faces a short-term trade-off between Inflation and Unemployment
      2. Ch2 – Thinking like an economist
        1. The economist as scientist
          1. observation, theory, and more observation
          2. Circular Flow Diagram
            1. flows of dollars, Inputs and Outputs
          3. The Production Possibilities Frontier
            1. shows the combinations of output that the economy can possibly produce given available factors of production and the available production technology;
            2. opportunity cost between two variables
            3. technological advance enables to curve to move outward > increase output of both production;
        2. The economist as policy adviser
          1. Positive
        3. Why economists disagree?
  5. L2 Contents
    1. L1 Notes (L1 notes Slide 34-84)
      1. Demand, Supply & Equilibrium
      2. Demand (Schedule)
        1. Demand Curve (Individual & Market)
        2. Law of Demand
        3. Market Demand
        4. Change in quantity demanded VS Change in demand
        5. Factors affecting the demand
          1. Household income
          2. Price of substitute
          3. Price of complement
          4. Expectation of future (next week) price
          5. Fashion & taste
          6. Number of consumers in the market
        6. Shift in demand Curve
          1. increase in demand: rightward shift
          2. decrease in demand: leftward shift
      3. Supply (Schedule)
      4. Quantity Supplied VS Supply
      5. Law of Supply
      6. Supply Curve (Individual & Market)
      7. Exceptional case: vertical – limited item / auction item
      8. Factors affecting the supply
        1. cost of inputs
        2. Technology
        3. price of related goods
        4. number of firms in the market
      9. Shift in supply curve
        1. Increase in supply: rightward shift
        2. Decrease in supply: leftward shift
      10. Equilibrium of Supply and Demand
      11. Market equilibrium
        1. Equilibrium quantity: Quantity demand = Quantity supplied
        2. Excess demand / shortage: QD > QS, then, price tend to rise;
        3. Excess supply / surplus: QD < QS, then, price tend to fall;
      12. Effects of Government Intervention
        1. Price controls: government hold the price at disequilibrium value;
        2. Price Ceiling:
          1. P-max, maximum permissible price, such as petroleum;
          2. Leads Shortage
        3. Price Floor:
          1. P-min, eg. minimum wages which is higher than the market equilibrium
          2. Leads Surplus
      13. Types of non-price allocation method
        1. Queuing (first come, first served)
        2. Favored customer, eg. VIP
        3. Ration coupons
      14. 3-steps in Analyzing changes in Equilibrium
        1. Decide whether event shifts Supply Curve / Demand Curve or both;
        2. Decide in which direction curve shifts;
        3. Use supply-demand diagram to see how the shift changes equilibrium P and Q;
    2. Book reading (Ch3, 4 & 5)
      1. CH3 – The interdependence and the gains from trade
        1. Comparative Advantage: The driving force of Specialization
          1. Absolute Advantage: ability to produce a good with few inputs than other producer;
          2. Comparative Advantage and OC: ability to produce a lower opportunity cost than another producer;
            1. Trade can benefit everyone in society because it allows people to specialize in activities in which they have a comparative advantage;
            2. Each party can buy a good at a price that is lower than his / her opportunity cost;
      2. CH4 – The Market forces of Supply and Demand
        1. Market: buyers and sellers
        2. Competitive market: a market with many buyers and sellers so that each has a negligible impact on the market price
          1. perfectly competitive:
            1. goods offered for sale are all exactly the same
            2. lots of buyers and sellers, thus, no single of them has any influence over the market price; (different from monopoly);
      3. CH5 – Elasticity and its applications
      4. CH6 – Supply, Demand and Government Policies
  6.  References
  7. Follow-ups
    1. Multiple choices revision
    2. Reading
    3. TextBook:
FINA6003 – Economics (4&11May – L1&L2)

CY Firewall Selection project – 1804

  1. Objectives
    1. Scope: CYHK & CYSZ
    2. Next Generation Firewall
    3. Meet Technology Voucher assistance in HK
      1. 已核准科技券計劃項目列表.
      2. 科技券計劃.
      3. Dual entrance design
  2. Next generation firewall
    1. Definitions
      1. integration of enterprise firewall capabilities, IPS, application control;
    2. Features
      1. application aware
      2. identity aware
      3. Centralized administration, logging and reporting
      4. Stateful inspection (from layer 2 through 7 as well)
      5. Deep packing inspection
      6. Integrated IPS
      7. Able to monitor SSL and encrypted traffic
      8. Integration with other security solutions such as SIEM tools
      9. Inbuilt AntiVirus and AntiBot solution
      10. s
  3.  Contents
    1. Requirements
      1. Business requirements
      2. Technical requirements
        1. management features does each product offer? real-time analytics?
        2. adopt future expansion?
CY Firewall Selection project – 1804

Cacti on Windows

  1. Objectives
    1. Download and install Cacti on Windows 2008 Std server
    2. Configure CYCN-SNMP1 & CYHK-SNMP1 for  CY
  2. Contents
  3. References
    1. Download and install Cacti for Windows.
    2. 用 Cacti 來監控你的系統 – SNMP Client 設定 Round2.
    3. Cacti 免費、統一網絡監測軟件 – 介紹.
    4. CactiEZ (Cacti v.0.8.x).
    5. Windows Installation.
Cacti on Windows

Workplace Wiki

  1. Objectives
    1. Build a workplace wiki for CY IT & ERP
    2. Build a workplace wiki for MJ & SRG
  2. Steps
  3. Contents
    1. Version control and logging
    2. Searching in MediaWiki.
  4. References
    1. Stop Repeating Yourself: Set Up a Workplace Wiki
      1. MediaWiki’s installation Guide
      2. One click web MediaWiki installations
      3. Guide to contributing to Wikipedia
    2. MediaWiki for Windows 2008 R2.
    3. 7 Reasons Your Internal Wiki Should Live in Slack
    4. What are the best internal Wiki solutions for a 20 person startup? Why?
    5. How to build a wiki website for internal company use
    6. Setting up an internal Wikimedia wiki
Workplace Wiki


  1. References
    1. 開會博表現的方法
      1. 準時出席 帶備紙筆: 基本的做法來表現到你有心工作
      2. 準備充足 起承轉合:
        1. 如匯報工作情況,先擬定好要說甚麼,練習一下,有條不紊地匯報,切勿東一忽西一忽,令聆聽者不舒服;
        2. 而如果需要提出建議,就要花點心思,度一些起碼見得人的點子;
      3. 數據/例子 支持說話
      4. 會後總結 擬定行動
      5. 爭取機會 表現自己: 落力幫公司解決問題,上司自然會留意到你

Teeth whitening

  1. Contents
    1. 菠蘿及菠蘿汁美白;
    2. 以香蕉皮內側摩擦牙齒表面,直至香蕉皮在牙齒表面形成膏狀物,10-15分鐘後如常刷牙,能去除除牙垢及牙漬;
    3. 深綠色蔬果如菠菜、西蘭花等蘊含豐富礦物質,能於牙齒表面形成保護膜;椰菜花的鐵質就能形成耐酸薄膜;
    4. 糙米、粟米、小米、燕麥、竹筍、芹菜及韭菜等等粗纖維食物,所含的粗纖維能清潔牙齒,小心咀嚼粗纖維食物能按摩牙齦;
    5. 士多啤梨蘊含葉酸及蘋果酸,有助清潔牙齒;
  2. References
    1. 11個慳錢又有效的美白牙齒方案.
Teeth whitening