The Roaring Twenties: Economic Boom and the 1929 Crisis
The Roaring Twenties: Economic Growth
The end of World War I ushered in a period of reconstruction, opening a decade of growth and economic dynamism. The British economy, based on older industries such as textiles and steel, experienced a decline. However, falling prices of raw materials and food provided some advantages. The war led to dramatic development for the U.S. economy, making the United States the leading world power.
The Engine of Economic Development: Industry
Industrial growth occurred
Read MoreUnderstanding Economic Systems: Basics and Market Operations
Understanding Economic Systems
Economics Basics: An economic system is how individuals are organized in a society to solve their basic economic problems:
- What to produce?
- How to produce?
- For whom to produce?
The economic system is the set of relations, techniques, and characteristics of the institutional and economic organization of a society.
Economic Doctrines and Economic Systems
An economic doctrine is the set of ideas or opinions held by an important group of economists, such as Smith, Marx, and Keynes.
Read MoreGlobalization and World Economic Challenges
Globalization and the World Economy
Item 2
Globalization and the main shifts of the world economy:
- Internationalization: Economic relations among countries, with nations holding the primary role.
- Globalization: Economic relations, in general, escape from the hands of nations, with companies operating globally emerging.
Features:
- Liberalized and fully integrated markets.
- Independent national economies.
- Full freedom of capital movement.
- Economic policy beyond national control.
- Development of global strategies
Key Personal Finance Terms: Credit, Loans, and Legal Rights
Key Personal Finance Terms
Closed-end credit: One-time loans that the borrower pays back in a specified period of time and in payments of equal amount.
Revolving check credit: A prearranged loan from a bank for a specified amount; aka bank line of credit.
Home equity loan: A loan based on the difference between the current market value of a home and the amount still owed on the mortgage.
Fair Credit Reporting Act: Regulates the use of credit reports, requires the deletion of obsolete information, and
Read MoreProduction and Productivity: A Simple Guide
Production and Productivity
Production involves converting inputs into saleable goods, such as shoes. This process requires resources to be used efficiently, meeting consumer demand and quality standards.
Productivity
Productivity is a measure of how efficiently inputs are transformed into outputs.
Improving Productivity
- Improve skill level and motivation of workers
- Introduce more automation and better technology
Labour productivity = total output / number of workers
Inventories (Stock)
Inventories (stock)
Read MoreGlobalization, Development & Trade: Key Concepts
Globalization
Definition: Everybody everywhere in the world is affected in the same way because of different aspects such as politics, economy, and culture.
What is Development?
- Everyone can go to secondary school and is able to read and write.
- People are happier and healthier and enjoy life more.
- Building factories, providing jobs, and making a country.
- When a country has good hospitals and well-trained doctors.
- When people have sufficient food to eat and clean water to drink.
- When people have freedom