Key Concepts in Classical and Neoclassical Economics
- The zero-sum game is a situation where one country’s economic gain comes from the economic loss of another.
- The nation-state should be considered an organization between individual interests and the government to promote the progress of business, which would lead to a wide range of control by the monarchy.
- Use value refers to the ability of goods to satisfy needs, and exchange value is its ability to be exchanged for other goods.
- The measure of exchange value is the price of goods or the actual price
Advertising & IMC, Business Economics Exam Insights
Advertising & IMC Exam Insights
Q.1 (A) True or False:
- False – Salesmanship is personal communication, not mass communication.
- False – Regional channels primarily target regional audiences, not national ones.
- True – Accreditation is crucial for advertising agencies.
- True – Commission is a traditional agency compensation method.
- False – Advertising is not a production cost; it is a marketing expense.
- True – Self-regulation ensures ethical advertising practices.
Q.1 (B) Match the Columns:
- Publicity
Understanding Economic Stages, Activities, and Factors
Economic Stages
- Hunting and Fishing: Humans are limited to taking what nature directly provides.
- Farming: Humans cease being nomadic and become sedentary.
- Agriculture: The working environment is the earth.
- Agriculture with Industry: Agriculture evolves with the introduction of industrial practices.
- Industry and Contemporary Economy: Modern economic systems dominated by industry.
Economic Activity
Economic activity is the set of actions undertaken to satisfy human needs with appropriate external material
Read MoreFunding Options for New Businesses: ICO Loans & More
Funding Options for New Businesses
The Official Credit Institute (ICO) aims to support companies exceeding the critical period of their first two years. The characteristics of these loans are:
- Repayment terms: Three, five, or seven years.
- Interest rate: May be fixed or variable.
- Request: Made at the offices of major banks and savings institutions.
- Granting: Must respect the ceilings and are compatible with assistance received from autonomous communities.
Mutual Guarantee Schemes Refinancing (SGR)
Mutual
Read MoreBusiness Ownership and Entrepreneurship in India
Ownership Structure
Ownership structure refers to the framework that defines how a business is owned and managed.
Major Types of Ownership Structures:
a) Sole Proprietorship
- Owned and managed by a single person.
- The owner has full control over decision-making.
- Profits and losses are entirely borne by the proprietor.
- Unlimited liability: Personal assets can be used to cover business debts.
- Examples: Small shops, individual service providers (doctors, consultants).
b) Partnership
- Owned by two or more people
The 1929 Crash and the New Deal: Economic Recovery
The 1929 Crash and the “New Deal”
4.1. The Stock Market Crash and the Great Depression
Many investors were aware that stock prices were much higher than their actual value. Distrust spread among investors, and on October 24, 1929 (Black Thursday), a large sell-off affected the New York Stock Exchange. Suddenly, everyone wanted to sell their shares, and no one wanted to buy.
The wide range of actions caused the value to fall and crash, triggering the stock market crash of 1929. Many investors were ruined,
Read More