Economics Principles: Markets, Externalities, and GDP
Supply, Demand, and Economic Policy
Price Controls
Buyers always want lower prices, while sellers want higher prices, creating conflicting interests. A maximum price is the highest legal price at which a property can be sold. When the government imposes a price ceiling, two outcomes are possible:
- The equilibrium price is below the maximum price, making the price ceiling irrelevant.
- The price ceiling is below the equilibrium price, restricting market forces. The market price cannot exceed the ceiling,
The Great Depression: Causes, Impacts, and Global Responses
1. The Aftermath of World War I
1.1 Immediate Effects of the War
- Weakened European Economies: The war adversely affected population, production, and international cooperation. Prices of essential products increased, and Europe suffered deflation. Highly indebted Allied countries relied on the U.S. for financial support.
- Treaty of Versailles Disputes: The treaty generated disagreements, particularly regarding Germany’s responsibility for the conflict and its economic recovery. France demanded significant
Lease Accounting & Foreign Currency Transactions
Lease Accounting
Area Lease
Description
Leasing is a form of contract where the landlord grants the tenant the right to use an asset for a specific period, in exchange for payment. This agreement holds true regardless of the legal instruments involved and whether the landlord provides operational or maintenance services.
When the rental agreement’s economic terms transfer substantially all risks and rewards of asset ownership, it should be classified as a finance lease.
Recording and Valuation Standards
Two
Read MoreInternational Economics & Industrial Policy: A Comprehensive Guide
International Economics and Industrial Policy
Key Concepts and Questions
Industrial Policy and Economic Growth
Question 1: Industrial Policy and Sectoral Protection
Protecting specific sectors can lead to a proliferation of companies within those sectors. Economies of scale can favor monopolies. A higher “employment threshold” requires more production growth to generate employment. “Appropriability” is a sophisticated argument for industrial policy.
Question 2: Exchange Rates and Trade
A shift from
Read MoreBusiness Funding & Financing: A Comprehensive Guide
Business Functions
Financial Planning
Determine future capital needs and financing for investments.
Investment Decisions
Identify the most profitable use of financial resources.
Obtaining Funding
Explore the best ways to acquire necessary funds.
Controlling Financial Stability
Assess debt levels and ensure the company’s ability to meet its financial obligations.
Classification of Funding Sources
By Ownership of Resources
- Own: Capital and owner’s reserves.
- Others: Loans.
By Length of Stay
- Long-term financial resources:
Introduction to Operations Management: Cost, Quality, Time, Flexibility, and Customer Service
ITEM-12: Introduction to Operations Management
Introduction
Organizations involved in producing goods and services, from industrial firms to utilities, benefit from effective and efficient operations management. This can increase product value and contribute significantly to organizational success.
Concept of Operations Management
Production
Production encompasses the processes, procedures, methods, and techniques used to create goods and services. It involves systematic decision-making aimed at increasing
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