Economics

The straight-line method of depreciation of assets is the most commonly used method mostly because it is not overly complicated. This method considers the salvage value of an asset and estimates the useful life of it and spreads over the assets benefit across that timeline. The idea is the company is utilizing the assets equally in that time frame. At the end of its useful life, it would be sold or donated. The major criticism about this kind of depreciation is that, this model assumes that assets...

The main automobile manufacturers in the United States car market have flooded the market with so many cars in the last few decades that purchasing new cars is increasingly offered many incentives to a buyer. This effectively lower the cost a buyer would have paid for a new automobile, and the net effect is the increase in rate of depreciation in the automobile industry. Typically, those who prefer buying used cars put much emphasis on the reduced prices born by an automobile that has been on...

Trade is an activity which has been pursued since the dawn of human civilization and is an indispensable part of the modern day economic system. Being able to play an increased role in the global trade has is one the factors that has changed the fortunes of many under-developed countries and help the substantially reduce the development gap (Catch-up) with the developed world. Inspite of this, trade between African economies remains low and this dissertation seeks to answer this question and look...

Marginal analysis is an economic concept that facilitates the making of best decisions, by comparing incremental or marginal benefits to incremental or marginal costs. It results from the scarcity of resources. MARGINAL REVENUE Marginal revenue refers to the change in the total revenue resulting from an increase in the produced quantity by one unit. This is the revenue from producing one extra unit of a good. RELATIONSHIP BETWEEN THE MARGINAL REVENUE WITH THE TOTAL REVENUE In Maths, a marginal...

Elasticity of demand is defined as the percent change in quantity demanded over a percent change in price. It is given by this equation Elasticity of demand  Q2   Q1  P2   P1       Q1  Q2    P1  P2 A good is said to be elastic if a change in price causes a change in quantity demanded, inelastic if a change in price causes only a little change in quantity demanded. Numerical elasticity coefficients (or elasticity values) can be...

The Agricultural and industrial sectors in Venezuela are the main contributors to development. Agriculture in Venezuela contributes about 4 of the total GDP. It covers about a quarter of the land and uses 10 of the labor force. Most of the exports are manufactured goods. Others include fruits, cigarettes, sorghum, rice and cocoa. In 2005 for example, the major markets for the exports included Mexico (4.5), U.S. (57.5) and Colombia (4.5)(Food and Agricultural Organization, 2010). The agricultural...

The United States is one of the countries in the world that has dominated many the world   aspects for many years. The country dominance in the world stage is due the strength of its many superior structures and institutions it has than any other nation in the world. The main pillars of superiority are its economic endowment, its human capital, abundant natural resources, its military potential as well asa tradition of the liberal politics and economic traditions. TheUnited States over...

The growth of the internet has given retailers a new forum to hawk their goods.  The time when retail stores were limited to physical stores in malls and agoras is long gone.  Now, consumers can make purchases on the go and online with simply the click of a button.  This has changed the retail landscape and made it imperative for any retailer who wants to expend his or her market to explore the Internet Concept of Supply and Demand vis--vis online merchandising. 1.Discuss the ways...

China has undoubtedly been the economic success story for the last 30 years it has grown from being a centralized economy to a more independent system which is largely dependent on market forces and a fast growing private sector. The opening of foreign trade and investment has led to annual inflows of foreign direct investment of around 108 billion in 2008. However with the rapidly growing economy, China faces a number of problems which include corruption, environmental damages and work force related...

The most interesting matter about the article is the difficulty in handling existing bubbles in the economy.  Identifying these bubbles may seem to be simple but manipulating them is the major deal.  The gravity of the effects of these entities was very well felt through the problems that it caused the Federal Reserve and the economy in general.  The dilemma on deciding whether or not to prick these bubbles gives rise to various views for the welfare of the economy.  Attention...

The Great Depression taught us that falling prices or deflation and inflation are both destructive to the economy. Sustain fall in prices reduces incentives for businesses to increase production. The implication businesses will either cut available working hours or lay off some of its workers. Because wages tend to be inflexible in the short-run, the economy suffers from sustained recession (or depression). Sustained double-digit inflation can weaken the economy. Rising prices adversely affects...

World Bank refers to an international financial institution which deals with the provision of loans for capital programs and for development. Its main goal is to reduce poverty level in the world (Bernstein and Pauly, p 66). It was established in the 1940s as an agency for international development. Its main purpose was to provide and advice on loans to more than one hundred countries. Its one hundred and eighty member countries own and operate it. It raises its funds through the contributions made...

Political risk is a problem faced by government and businesses due to changes in politics that alters the result and quality of an economic process leading to failed business objectives. It also means the interference of Government in the trade affairs of foreign investors or firms doing business in a certain country. The Government may interfere with the foreigners assets by taking them away by force or even cancel their contracts in favor of Government firms. Even though the USA has specific guidelines...

The knowledge on international political economy (IPE) can significantly help in understanding matters related to globalization. The changes in the domestic and the international policies can bring about the interaction of the international economies which is an aspect of globalization. This change in the policies and that of the economic beliefs and practices gives rise to the technological developments in the political economies that are essential in globalization (Spero  Hart, 8). From this...

Taxation can be defined as a levy usually by a government for a mixed contribution of money. This money is usually used by governments in the development of a country. A taxation system can therefore be defined as the way governments manage their taxes and how they use it. A taxation system may be of three types. These are Territorial, Residency and Exclusionary. Territorial taxation deals with taxation of only in-country income. This includes all business activities carried out within a country...

The concept of scarcity as applied in economics represents the aspect of unlimited resources used to satisfy human needs and wants. In an economy with unlimited resources, the concept of demand and supply arises. Demand in this concept is defined as the ability of an individual to purchase goods and services. Supply on the other hand means quantities that will be sold at certain price in any form of an economic system. Resources are the means through which a product is produced and can be land,...