Production Processes, Factors, Costs, and Quality Control
The Production Process
Production processes are the set of activities through which companies create, manufacture, or produce goods and services. They use the available productive resources. Goods and services will have a higher value than the elements used and are purchased by customers to meet their needs.
In goods companies, the area that is in charge of the production process is called the production department, while in service companies, it is often called the operations department.
Production
Read MoreKey Concepts in Economics: Money, Inflation, and Fiscal Policy
Credit Creation by Commercial Banks
A commercial bank is a dealer of credit. It creates money based on cash deposits. Further, it issues new money through its loan operations and creates credit or expands the monetary base of a country. Therefore, this process of credit creation leads depositors to believe that they have money with the bank. Also, borrowers believe that they owe a certain amount of money to the bank.
Limitations of Credit Creation
The multiple credit creation process, as explained
Read MoreMacroeconomics: Meaning, Scope, Limitations, and Nature
Meaning of Macroeconomics
The term ‘macro’ is derived from the Greek word ‘Makros,’ meaning ‘large’ or ‘aggregative.’ Ragnar Frisch first used this term in 1933. Macroeconomics is the branch of economics that studies the problems of the economy as a whole. It deals with the problems of all the people in the country, all the firms, and all the industries in the economy, total output and consumption of a commodity, and the income of a nation as a whole. Thus, it deals with national income, employment,
Read MoreMacroeconomics: Impact on Inflation, Trade Cycles, and Public Debt
Inflation: Causes and Consequences
Inflation is a gradual increase in the prices of goods and services over time, which reduces the purchasing power of money. This means that the same amount of money can buy fewer goods and services. Inflation can have many consequences, including:
- Consumers: Inflation can cause consumers to tighten their belts and become more pessimistic about the economy.
- Businesses: Inflation can cause companies to lose purchasing power and see their margins decline.
- Investors: Investors
Organizational Culture, Productivity, Profitability, and Competitiveness
**Organizational Culture**
It is a system of common meaning among members of a company and distinguishes one organization from others.
**Characteristics**
- Individual Autonomy: The degree of responsibility, independence, and opportunities to exercise the initiative that people have in the organization.
- Structure: The standards and rules used to control employee behavior.
- Support: The support that managers show the employees.
- Identity: The degree to which employees identify with the organization.
- Performance-
Monopoly Power, Public Expenditure, Taxation, and Economic Surpluses
Bases of Monopoly Power
The bases of monopoly power are related to why monopolies are born. Knowing the cause that motivated the birth of a monopoly, that same cause is the source, the force that makes maintaining its existence. So, then, knowing the reason for their appearance can determine the basis of his power. The causes for the occurrence of the monopoly are:
A – By the particular conditions of production of a good that make it uneconomical to the existence of more than one manufacturer of a
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