Understanding Demand and Market Structures
Read MoreShifting the Demand Curve
Price fluctuations, while other production factors remain constant, cause shifts in the demand curve. These shifts occur due to changes in:
- Price
- Consumer tastes
- Income
- Purchasing power
- Demand for related goods
The demand curve shifts to the right when income increases (for normal goods). However, the demand for inferior goods decreases as income rises.
Types of Goods
- Inferior Good: Quantity demanded decreases as income rises.
- Normal Good: Quantity demanded increases as income rises.
Understanding GDP, National Income, and Fiscal Policy
National Accounting: Measuring Economic Activity
National accounting measures the activity of an economy over a period, usually one year, recording the transactions between the different actors. GDP (Gross Domestic Product) represents the total monetary value of final goods and services produced for the market within a country’s borders in a year.
GDP by Expenditure Approach
The expenditure approach to measuring GDP adds the value of goods and services acquired by each type of end-user (families, businesses,
Read MoreUnderstanding Business, Finance, and Economics
Shares
An action, or share, represents part ownership (an aliquot) of a company. Title D Shares are equity because their performance depends on whether profits are distributed to shareholders.
Ways to obtain resources from outside the firm:
- Banks, savings banks, and other financial institutions through loans and credits.
- The issuance of bonds or debentures.
- Trade credit by suppliers or the company.
Company
A company is the basic unit of production. It hires and purchases labor and other factors in order
Read MoreDelivery Slips and Invoices: Essential Documents
The Slip
It is a document that the seller prepares and sends to the buyer along with the merchandise. Its main function is to serve as proof to establish that the goods have been delivered to the customer and also as a guide for drawing up the bill. The delivery note credits the following facts: the goods leaving the seller’s warehouse, the buyer receiving the goods, and the transportation time.
The slip is also essential evidence to prove the effects of delivery or availability of material sold to
Read MoreProduction Functions, Processes, and Cost Efficiency
Functions of the Production Department
The production function directs the company’s production.
- Procurement: Provides the necessary materials for production.
- Manufacturing: Manages the production process, transforming productive factors into a final product.
- Storage: Organizes all the materials that exist on the company’s premises, whether used in the manufacturing process or sold to customers.
- Quality Control: Verifies that the product produced has the characteristics desired by customers.
Relationship
Read MoreAutarky in Spain (1936-1959): Policies, Effects, and Assessment
Autarky in Spain (1936-1959)
Autarkic Policy. Media and the reasons for the delay in the transport situation were very poor: production equipment was destroyed, and many crops and livestock were lost. In addition, the Bank of Spain used 150 tonnes of gold to pay for war material, and measures to stimulate the economy had a negative impact. However, after 15 years of war, this is not a sufficient reason for the delay of the Spanish economy.
The importance of autarky explains the delay. The most important
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