Economic Systems and Concepts: A Comprehensive Overview
Economic Systems Through History
- Barter Economy: A system in which goods and services are directly exchanged for other similar goods and services, regardless of currency.
- Slave Economy: An economy based on the exploitation of slave labor to benefit the ruling class.
- Feudal Economy: Society was divided into nobility, clergy, and peasantry. The first two groups were the owners of the land, which was worked by the third party on behalf of the former.
- Autarky: A system in which a territory intends to be
Second New Deal & WPA: US Economic Recovery 1935-1937
The Second New Deal (1935-1937)
Through intense publicity campaigns, consumers were encouraged to do business with companies that displayed the Blue Eagle as a sign of their cooperation with the NRA.
The U.S. Supreme Court invalidated the NIRA in May 1935, but President Roosevelt went on to introduce new policies to implement the New Deal.
Though public support for Roosevelt remained high as 1934 ended, the Depression had not significantly subsided. First New Deal experiments aimed at relieving major
Read MoreEssential Business Concepts and Their Meanings
Key Business Terms and Definitions
Licensing
Licensing – Authorizing the use, performance, or release of something.
Market Development
Market development – A strategy that entails expanding the potential market through new users or new uses. New users can be defined as new geographic segments, new demographic segments, new institutional segments, or new psychographic segments. Another way is to expand sales through new uses for the product.
Market Penetration
Market penetration – The percentage of a target
Read MoreFinancial Terms: Salaries, Expenses, Accounting, and Business Structures
Income and Compensation
- Salary: Money paid monthly by an employer.
- Wages: Money paid by the day or the hour, usually received weekly.
- Overtime: Money received for working extra hours.
- Commission: Money paid to salespeople and agents – a certain percentage of the income the employee generates.
- Bonus: Extra money given for meeting a target or for good financial results.
- Fees: Money paid to professional people such as lawyers and architects.
- Social Security: Money paid by the government to unemployed and
Stalin’s Dictatorship, WWI Aftermath, and the Great Depression
Stalin’s Dictatorship
Stalin exercised a true dictatorship in which the Communist Party controlled all organs of state. His leadership was reinforced by the cult of personality that was given to the person. Anyone suspected of opposing Stalin was charged as an enemy of socialism. In Moscow, the major processes of a violent police apparatus purged dissidents, and many of them were executed, imprisoned, or deported to labor camps.
The Consequences of World War I
The United States benefited greatly from
Read MoreUnderstanding Key Financial Terms and Statements for Businesses
Key Financial Terms and Statements
Heritage
Heritage is the representation of all goods and rights that a company has to do its business, as well as payment obligations it has with others. It is formed by what the company has and what it expects to charge, minus what the company owes. Net worth is the residual part of the assets of a company after deducting all its liabilities, in addition to the contributions of partners or owners and the cumulative results from earlier periods. Assets are the sum
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