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Category: Economics

Causes, Consequences and Solutions of Unemployment in America

Posted on June 6, 2022 By Finance Notes Team No Comments on Causes, Consequences and Solutions of Unemployment in America
Causes, Consequences and Solutions of Unemployment in America
Economics

Brief History of Unemployment in America Unemployment is one of the most debated problems in the United States since early the 19th century. It has been calculated that since 1948, the unemployment rate has been increasing at a rate of 5.7 percent. 10.80 percent was the highest rate of unemployment ever experienced in America while … Read More “Causes, Consequences and Solutions of Unemployment in America” »

Characteristics of Perfect Competition

Posted on May 18, 2022 By Finance Notes Team No Comments on Characteristics of Perfect Competition
Characteristics of Perfect Competition
Economics

A perfectly competitive market occurs when there are several sellers and producers selling identical products and no single producer can control prices. It is a type of economic structure where the market prices are at equilibrium and are determined by market forces of demand and supply. A perfectly competitive market is one in which all … Read More “Characteristics of Perfect Competition” »

Advantages and Disadvantages of a Mixed Economy

Posted on May 18, 2022 By Finance Notes Team No Comments on Advantages and Disadvantages of a Mixed Economy
Advantages and Disadvantages of a Mixed Economy
Economics

Mixed economic system is one which incorporates the elements of both a free market system and centrally planned market system. In this case, the interaction of market system such as demand and supply are allowed to guide the market but the government interferes by controlling some activities in the market through a planned allocation and … Read More “Advantages and Disadvantages of a Mixed Economy” »

Exchange Rate Relevance for Monetary Policy Making: A Case Study of Iceland

Posted on January 14, 2022 By Finance Notes Team No Comments on Exchange Rate Relevance for Monetary Policy Making: A Case Study of Iceland
Exchange Rate Relevance for Monetary Policy Making: A Case Study of Iceland
Economics

Introduction In the current world environment, there are less economic restrictions across borders and the volume of capital transfer from one country to another is increasing. As a result, exchange rates have become important economic policies in various countries. Exchange rate policy may therefore affect the monetary policy of various countries. Specifically, small open economies … Read More “Exchange Rate Relevance for Monetary Policy Making: A Case Study of Iceland” »

Effect of mergers on the welfare of society

Posted on September 4, 2021 By Finance Notes Team No Comments on Effect of mergers on the welfare of society
Effect of mergers on the welfare of society
Economics, Management

Two or more similar business companies may decide to combine their businesses into one large company. These are what are referred to as mergers. This may be for several reasons which include an aim to compete with other companies and get as much as possible market share (Schinkelet al, 2010). Companies may also merge or … Read More “Effect of mergers on the welfare of society” »

Price Elasticity of Demand

Posted on September 3, 2021 By Finance Notes Team No Comments on Price Elasticity of Demand
Price Elasticity of Demand
Economics

What is price elasticity of demand? How is price elasticity of demand calculated? How is price elasticity of demand represented in a graph? How is price elasticity of demand used in management to make pricing decisions? Find out Below: Price Elasticity of Demand Price elasticity of demand is the degree of responsiveness of the quantity … Read More “Price Elasticity of Demand” »

Elasticity of Demand

Posted on September 3, 2021 By Finance Notes Team No Comments on Elasticity of Demand
Elasticity of Demand
Economics

What is Elasticity of Demand in Economics? In economics, elasticity refers to the sensitivity of one economic variable in response to a change in another variable. It relates to the degree to which a variable changes as another variable is changed. For example, how higher will the price of a commodity go when the demand … Read More “Elasticity of Demand” »

6 Examples of Anticompetitive Behaviors

Posted on September 3, 2021 By Finance Notes Team No Comments on 6 Examples of Anticompetitive Behaviors
6 Examples of Anticompetitive Behaviors
Economics

Anticompetitive behavior refers to a set of activities or business practices carried out systematically by a firm or group of firms or government institutions to restrict competition in the market. Some of the anticompetitive behaviors are described below. Dumping – this is a process in which a company sells its products in a competitive market … Read More “6 Examples of Anticompetitive Behaviors” »

Profit Maximization in a Monopoly

Posted on September 3, 2021 By Finance Notes Team No Comments on Profit Maximization in a Monopoly
Profit Maximization in a Monopoly
Economics

1. Profit maximization scenario A monopoly like the large telecommunications company is a business that has no competition in the market. Profit maximization for a monopoly is mainly a revenue maximization scenario (Samuelson, 2001). As shown in the figure below, the profit maximizing point is the point where marginal revenue is equal to the marginal … Read More “Profit Maximization in a Monopoly” »

Positive and Negative Externalities

Posted on August 6, 2021 By Fredrick Chepkonga No Comments on Positive and Negative Externalities
Positive and Negative Externalities
Economics

How is your dog related your neighbor’s education? How does pollution from a nearby factory affect your health? When an individual, government or private company engages in a mega project, it may cause unintended costs and benefits to other people. The indirect effect of an activity to a society can have negative or positive outcome … Read More “Positive and Negative Externalities” »

Capitalism: Definition, History, Characteristics, Benefits and Challenges

Posted on August 4, 2021 By Finance Notes Team No Comments on Capitalism: Definition, History, Characteristics, Benefits and Challenges
Capitalism: Definition, History, Characteristics, Benefits and Challenges
Economics

What is Capitalism in Economics? Capitalism can be defined as an economic model in which individuals in a society can own and control capital goods. As opposed to socialism where the economy is centrally planned, capitalism involves a free market approach in which the forces of demand and supply determine the price mechanism of the … Read More “Capitalism: Definition, History, Characteristics, Benefits and Challenges” »

Socialism: Definition, Characteristics and Weaknesses

Posted on August 4, 2021 By Finance Notes Team No Comments on Socialism: Definition, Characteristics and Weaknesses
Socialism: Definition, Characteristics and Weaknesses
Economics

What is Socialism? The term socialism is often used interchangeably with communism. There are different perspectives and definitions of socialism. Based on its dictionary definition, socialism refers to a theory of social organization which advocates for the ownership, distribution and exchange of the means of production by the community as a whole. It is also … Read More “Socialism: Definition, Characteristics and Weaknesses” »

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