Labor Force, Productivity, and Aggregate Supply & Demand
The Labor Force
The labor force in an economy is defined as the total number of workers who are available for work. Basically, all males and females, normally 15-16 years and over, who can contribute to the production of goods and services. As well as actually employed people, it also includes those unemployed, as these people are available for work.
The size of the labor force depends on factors such as:
- The total size of the population of working age
- The number of people who remain in full-time education
Cash Flow Forecasting for Business Success
Forecasting Cash Flow
Cash Flow Definition
- Cash flow: The sum of cash payments to a business (inflows) less the sum of cash payments (outflows).
- Liquidation: When a firm ceases trading and its assets are sold for cash to pay suppliers and other creditors.
- Insolvent: When a business cannot meet its short-term debts.
Importance of Cash Flow Planning for Entrepreneurs
Cash flow planning is vital for entrepreneurs because:
- New business start-ups are often offered much less time to pay suppliers than larger,
Key Business Ratios and Financial Analysis Techniques
Accounting Ratios
Ratio Analysis looks at the pairing of financial data in order to get a picture of the performance of the organization.
- Ratios allow a business to identify aspects of their performance to help decision-making.
- Ratio Analysis allows you to compare performance between departments and over time.
- Five different types of ratios can be used to measure:
- Profitability – how profitable the firm is.
- Liquidity – the business’s ability to pay.
- Asset Efficiency Ratios – Firms need to use their assets
Economic Theories: Classical, Keynesian, Monetarist, and More
Historical Evolution of Economic Thought
Classical Economics (Ricardo, Mill, and Say)
Classical economists believed in an “invisible hand” without state intervention in the market. They posited that market forces (supply and demand) would maximize the production of goods and services and prevent unemployment.
Keynesian Economics
Keynes advocated for state intervention in the economy. He developed a theoretical framework to explain the Great Depression, arguing that waves of pessimism could negatively
Read MoreKey Concepts in Economics: A Comprehensive Review
Key Concepts in Economics
Microeconomics
- B. Productive resources are limited.
- B. A comparison of marginal benefits and marginal costs in decision making.
- B. If the marginal benefit of the movie exceeds its marginal cost.
- A. Scarcity and opportunity costs.
- C. The temperature is 92 degrees today.
- D. That more output could be produced with the available resources.
- This economy will experience unemployment (graph B. B).
- Starting at point E (graph), bread production C. 1/8, 1/6.
- D. A technological advance
Economic Principles: Specialization, Production, and Market Systems
Specialization and Exchange
One of the ways in which more goods and services can be produced in the economy is through the process of specialization. This refers to the situation where individuals and firms, regions, and nations concentrate upon producing some specialized goods rather than others. Specialization allows individuals (or countries) to specialize in what they are best at, and thus more goods and services will be produced.
However, no one is self-sufficient. It becomes necessary to exchange
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