Tax Systems
Professor John Palmer states that when we developed the Law of Diminishing marginal returns, we simplified our analysis by concentrating on just two inputs…
Managerial Economics
Four Steps to Forecast Total Demand – by F. William Barnett
· In recent history, many companies have made serious strategic errors because of inaccurate industry wide demand forecasts. During the 70’s and 80’s, U.S. electric…
Impact Of The Economy On Business
The economy affects businesses through the following ways: 1.Unemployment If large numbers of people are unemployed, spending on goods/services will decrease, people who are then…
Marginal efficiency of capital
The marginal efficiency of capital is the MRP of an extra unit of capital less its cost. MEC = MRP of Capital – Cost of…
Equilibrium Expenditure
A. Aggregate Planned Expenditure and Real GDP Aggregate planned expenditure is the sum of planned consumption expenditure, investment, government purchases of goods and services, and…
The Expenditure Multiplier
The Basic Idea of the Multiplier The multiplier is the amount by which a change in any component of autonomous expenditure is magnified or multiplied…
The AD Curve and Equilibrium Expenditure
The Aggregate Demand (AD) curve can be derived from the aggregate expenditure model. An increase in the price level decreases aggregate expenditure. The decrease in…
Monopoly
Oil Companies had a monopoly in the United States; one man, one company had control of the American oil industry. The government broke up the…
Supply and Demand
One great example of supply and demand is you do your everyday routine at the local market and you buy a 6 pack of beer…
Taxation – A History and Brief Guide
A tax is a financial charge or other levy imposed on an individual or a legal entity by a state or a functional equivalent of…