Economic Shifts After WWI: US Rise & Market Crash
Economic Consequences of World War I
The First World War significantly impacted the economic power of the United States and Europe. The conflict had very negative consequences, stemming from disagreements among the Allies about debt repayment and the organization of international economic relations, as well as the effects of peace treaties. The Treaty of Versailles imposed heavy reparations on the defeated nations, particularly Germany, which lost 13% of its territory and 10% of its population, leading
Read MoreEconomic Policy in Francoist Spain: 1939-1975
Evolution of the Economic Policy of the Franco Dictatorship
During the postwar years, from 1939 to 1959, Spain experienced autarky, a system where the nation’s needs were met solely through its own resources. Embracing self-sufficiency, Spain avoided external dependence. Franco made a virtue out of necessity. These were years of hunger, misery, and a daily struggle for survival. The state intervened heavily in the regulation of foreign trade, reducing imports, including consumer goods, raw materials,
Read MoreKey Financial Concepts and Definitions
Activity-Based Costing (ABC)
Activity-based costing (ABC) identifies activities that create costs and factors that drive indirect costs. It ties cost drivers to the production of goods.
Money Supply Measures (M1 & M2)
- M-1: A measure of the money supply that includes only the most liquid (spendable) forms of money.
- Currency (Cash): Government-issued paper money and metal coins.
- Check: A demand deposit order instructing a bank to pay a given sum to a specified payee.
- M-2: A measure of the money supply
Understanding International Trade and Finance
International Trade
International Commerce is the exchange of goods, services, and capital between countries. A country that participates in international trade is said to have an open economy. An indicator of a country’s degree of openness can be determined by analyzing the volume of its exports and imports relative to its GDP.
Reasons for International Trade
- Different endowments of productive resources.
- Varying technological capabilities.
- Comparative advantages in production costs.
- Differences in consumer
Cartesian Plane, Equations, Market Equilibrium
The Cartesian Plane
Quadrant I
Market Structures Explained: Competition, Monopoly, and Oligopoly
Understanding Market Structures
The market is any means by which a match between the supply and demand of goods is established. The exchange of the asset is carried out at a fixed price. We say that the market is in equilibrium when it matches the wishes of the supply and demand, i.e., when the quantity supplied corresponds to the quantity demanded.
Market Structure Factors
Number of Participants
Refers to the number of companies offering the same product on the market and the number of applicants who
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