Found 235 Articles for Economics

Raw materials, work-in-progress, and finished goods all makeup inventory, which is one of the most crucial aspects of a firm due to its status as a key asset for retailers and manufacturers. Completed items are another category of stock on hand. Inefficient and ineffective management can spell doom for a business. This is because the cost of goods sold is subtracted from the firm's net income to arrive at its profit. Many other approaches exist for determining the value of an organization's stock, such as the Last-In-First-Out (LIFO) technique, the First-In-First-Out (FIFO) method, and the Weighted-Average-Cost (WAC) method. Serious ... Read More

Despite the fact that economic performance is notoriously difficult to anticipate, we have witnessed some major transformations that have typically resulted in either a boom, characterized by a period of high economic development or a recession, characterized by a period of sluggish economic growth. Results consistent with both hypotheses have been spotted. Certain economic factors do not result from human actions or errors, even if most are. The business cycle consists of several phases: growth, peak, peak, recession, depression, trough, recovery, growth, peak, recession, and trough. The business cycle consists of one growth followed by one recession. What is ... Read More

When taking a flight with an airline, you can choose a wide variety of seating options. The factors influencing this choice include ease of use, budget, and convenience. Today, most commercial airlines have three distinct service tiers: first class, business class, and economy class. There is a price difference between the different types of transportation on offer. A few airlines, however, provide a more luxurious option called a premium economy class or economy plus class. These cabin sections are situated between the more basic economy section and the more plush business section. The first-class cabin is being removed to make ... Read More

The collection and analysis of data are crucial steps in any venture, be it related to business, government, the environment, or even human welfare. It is the job of economists and statisticians to carry out these tasks. These two words are often used interchangeably due to their close relationship and the fact that data analysis is fundamental to all of them. However, they are not the same in any way. Who is an Economist? An economist is someone whose primary job responsibility is the analysis of data in settings as diverse as the private sector, academia, and government. The information ... Read More

What is Disposable Income? Disposable income is the money that is left over from the salary after one has paid central, state, and local taxes. It is also called disposable personal income (DPI). These three categories of taxes consist of income and wealth taxes and salary deductions for provident funds, retirement funds, and other costs. The taxes for permits, licenses and other fixed fees someone pays to a government agency at any level are also deducted from personal income to calculate disposable income. If someone has any funds that are withheld for retirement savings that are, as mentioned above, ... Read More

Introduction Like individuals, businesses also have circumstances that cover them up. It is important to learn about the environment of businesses because it offers the idea to rectify the mistakes and make productive decisions as and when needed. The circumstances around businesses create business environments. Business environments can be classified into five major categories which are the following − Legal Environment Economic environment Political Environment Social Environment Technological Environment Let us see each one in detail. Legal Environment The legal environment is comprised of laws and regulations enacted by governments and other legal authorities. It includes the laws ... Read More

What is Exchange Rate? The exchange rate is the price of a currency in comparison to another currency. It is either fixed by the central bank or determined by the market demand of demand and supply. When the central bank fixes the exchange rate, it is known as the fixed exchange rate. On the other hand, when the rate is fixed by demand and supply, it is known as a floating exchange rate. Characteristics of Exchange Rate An exchange rate is an indispensable tool in facilitating international trade. It also shows the comparative value of the currency. By ... Read More

Income and Employment Theory The determination of income and employment is related to the income and employment theory. The theory is an economic analysis related to the comparative levels of output, employment, and prices in an economy. By establishing the interrelation of these three macroeconomic factors, governments and economies try to create various policies that lead to economic stability. The contemporary interest in the income and employment theory started with the depth of the Great Depression of the 1930s in the US and Europe. At that time, economists failed to explain the persistently high levels of joblessness and the low ... Read More

Introduction Banks not only let us manage our wealth but they also guide us to invest money in various resources. Commercial banks are those banks that interact mainly with the public and so knowing about commercial banks is an important part of everyone’s knowledge. What are Commercial Banks? Commercial banks are financial institutions that deal in deposits and withdrawals of money for the general public. These organizations also provide loans for investment and other such activities. Commercial banks are profit-making institutions and they do business only in order to make a profit. Commercial banks are regulated by the central bank ... Read More

What is a Full Disclosure Principle? The full disclosure principle refers to the situation where a company should provide all necessary information about the company in its financial statements so that its stakeholders can be aware of it from all angles. Full disclosure leads to better transparency and efficiency of the operations of a company in the long run. According to the full disclosure principle, all information should be there in an entity's financial statements so that it affects a reader's understanding of those statements positively. However, the interpretation of the full disclosure principle is highly judgmental. It is ... Read More