Monopolies detrimental to the public

When a company is free to determine their own prices because of monopolies this production could be detrimental to the public. Because the price that generates the highest return for a monopolies may not be achieved if there is free competition.

The Circular Flow Model

circular flow diagram

Why National income is different from country to country? Of the factors mentioned in the post Determines incom nation, explain that why some countries have higher incomes than in other countries, and suggests some difficulty in raising the national income. We will investigate this issue more fully in the upcoming posts. This time we'll talk of National Revenue and the theory of circular flow.

What Determines National Income

Why national income is not always as great as it should. And what can be done to make the national income bigger?. The size of a country's national income (which is more or less the same as "gross national product" or "gross domestic product", which has been discussed in the post monopoly depends on a number of things.

Creating Credit

How did the first people created the credit? Previously we have discussed how the medieval goldsmiths soon realized that they do not have to confine all the money saved with them. They simply keep a small part and lend the rest. So is the modern bank in the modern economy. If you find a stack of paper money is still good and worth a thousand new dollars invested in a chest in the backyard by his aunt Matilda. You take it to your bank,

Money Bank

How much money who owned a country? Because everywhere people assume that the rate of  price in any country depends on the supply of money, this question is an important question. And at first glance does not seem difficult to answer, because the average person think of money as bank notes and coins in his pocket. Of course the government knows how many coins and banknotes that have been printed? Why is it difficult?

Paper money in the economy

How it started the bill that we know and what we use today? At some point in the Middle Ages according to a history text book, which the role of paper money in the economy, people started bringing their gold to the goldsmiths' for safekeeping. Goldsmith is then issued a receipt for the gold.

Monopoly

Monopoly problems appear to be important in economics. Monopoly may be difficult to control, partly because of the monopoly is often more efficient manner and is more widely known than any competitor, and partly because many of the industry can only support a single manufacturer. (Please note that the restaurant or newsagents only in a small town in this situation: Monopoly does not need much).

Utilizing the factors of production

Labor, land, and capital in the call of factors of production due to these factors provide a means by which goods and services produced. Some economists adding a fourth factor: the business (enterprise). This is because the labor, land and capital alone will not produce anything unless there is someone ready to buy and organize for action. People who carry out this task we might think of as business people, technically known as entrepreneurs (entrepreneurs). Entrepreneurial activity is to utilize the factors of production.

Factors of Production

After discussing the types of economic systems in which production is organized. What are the factors of production ? Now let's see how the actual goods and services produced. Essence is clear [employment]. Nature may provide the raw material, even some of the final product, but labor is still needed to make it usable, although it was just a pick fruit from trees.