Fundamental Microeconomic Principles and Definitions
Economic Systems and Philosophies
Free Market Economy
A free market economy is a rationing system by which societies allocate resources to the production of goods and services using the price mechanism, with no government intervention. All economic decisions are based on the market forces of demand and supply. (Inspired by Adam Smith)
Command Economy
A command economy, also called a centrally planned economy, is a rationing system where the means of production are owned by the state. There is no private
Read MoreKey Business Structures and Core Management Principles
Cooperative Organizations Explained
A cooperative organization is a business or organization owned and controlled by its members, who use its services. The basic philosophy is self-help and mutual aid, with a focus on service rather than maximizing profit for external investors.
Advantages of a Cooperative Organization
- Democratic Management: Cooperatives operate on the principle of “one member, one vote,” regardless of the number of shares held. This ensures democratic control and prevents a single
Essential Concepts in Finance, Accounting, and Market Economics
Foundational Concepts in Accounting and Finance
Core Accounting Definitions
Accounting
Accounting is the process of recording, classifying, summarizing, and interpreting financial transactions to determine the profit or loss and the financial position of a business.
Financial Accounting
Financial accounting involves recording, summarizing, and reporting a business’s financial transactions. It helps determine profit or loss for a specific period and shows the firm’s financial position. Its main purpose
Read MoreUnderstanding Stakeholders: Internal, External, and Conflicts
Understanding Stakeholders: Roles, Motivations, and Conflicts
Stakeholders are individuals or groups with an interest in an organization. They are motivated to contribute when the benefits (incentives) they receive are greater than their efforts (contributions). Stakeholders can be internal or external.
Internal Stakeholders
Shareholders: They are the owners of the organization and hold the most power. Their contribution is financial investment, and their incentive is the return or profit generated
Read MoreAggregate Supply, Demand, and Economic Growth Factors
Aggregate Supply and Demand Dynamics
Short-Run and Long-Run Aggregate Supply
Determinants of Short-Run Aggregate Supply (SRAS)
What are the determinants of short-run aggregate supply? Changes in input prices, taxes, and business and inflationary expectations.
Determinant of Aggregate Supply (AS)
What is a key determinant of aggregate supply? Productivity.
SRAS Curve Slope
The short-run aggregate supply curve slopes upward because profits increase at high price levels and because many input prices are slow
Environmental Policy, Global Trade, and External Debt Analysis
Landscape Protection and Environmental Impact
The European Landscape Convention (ELC)
Who recognized the public interest role of landscape?
The European Landscape Convention, signed in Florence in October 2000.
What did the ELC state about landscape in October 2000?
The Convention stated:
Read More“Landscape has an important public interest role in cultural, ecological, environmental and social fields, and constitutes a resource favourable to economic activity and whose protection, management and planning can