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 about economics
the about economics, economic growth, production, money, market,prices, corporate, capital, investment
Friday, March 2, 2012
Saturday, February 18, 2012
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.
Monday, February 13, 2012
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.
Monday, February 6, 2012
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,
Thursday, February 2, 2012
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?
Tuesday, January 24, 2012
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.
Monday, January 16, 2012
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).
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