Finance General Faqs

What is the opportunity cost of devoting scarce university land to car parking?
Since opportunity cost is defined as the cost of any activity measured in terms of the best alternative activity, which is forgone, in this case, the opportunity cost can be a field for students to play around or a land where a library can be buil...... More »
How do reductions in government spending affect the economy?
Generally the government is very good at wasting money and resources so less spending, by the government helps the economy as those resources are allocated in areas that are more efficient. ...... More »
What is the significance of foreign exchange rate risk and how can this risk be mitigated?
Foreign exchange risk is the level of uncertainty that a company must manage for changes in foreign exchange rates that will adversely affect the money the company receives for goods and services over a period. For example, a company sel...... More »
How do the determinants of demand affect the price of a particular product?
As demand for a good goes up, the price goes up. So any determinant of demand that has positive or negative effect on demand will have the same affect on the price. ...... More »
What is a monopoly?
When one business or company dominates its area and squeezes out all its competition, the result is the consumer does not have a free choice, and inevitably, the price of its products or services will increase, and the 'Monopoly' increases...... More »
How does outsourcing affect the economy?
In principle, outsourcing makes things a little cheaper and increase profitability. However, some things need to be done 'in house'. For example, some employers (largely) outsource recruitment to key posts. The people making the decisions ...... More »
What is an Oligopoly?
Oligopoly is a market where the supply is controlled by a small group of companies. In this condition, the actions of one company will have a material effect on the entire market for a product. Several characteristics of an Oligopoly:More »
How do you explain GNI per capita?
A measure of the wealth is earned by nations through economic activates all around the world. Gross National Income comprises the total value of goods and services produced within a country (i.e. its Gross Domestic Product), together wit...... More »
What is the average standard of living in Africa?
It is extremely low. Africa is the most impoverished continent on the face of the planet. The average African has scarce access to safe drinking water and most commonly lacks plumbing. "Informal housing" is the rule with electricity and safe trans...... More »
What kind of market demand and supply information would be useful to you in deciding upon a business strategy?
Market Demand and Supply Information A customer-filled form of the following fields will be of great use. 1) Do you need product urgently? 2) How many times have you visited our store? 3) Was the proper information pr...... More »