Finance General Faqs

What is Ricardos Theory?
Briefly, the price of anything is based on comparative advantage. If Adam produces clocks better and cheaper than Bill, all clock production should go to Adam. ...... More »
What is pricing of Factors of Production?
Whenever we have touched on the pricing of productive factors, we have signified the prices of their unit services, i.e., their rents. In order to set aside consideration of the pricing of the factors as "wholes," as embodiments of a series of fut...... More »
What is meaning of market economy?
The meaning of a market economy is in which the decision and production are made. The consumption of goods services are based on voluntary exchange in markets. ...... More »
What is consumption?
"Consumption" is an old name for tuberculosis (TB) that describes how the illness wastes away or consumes its victims. TB is "an ancient enemy" that has plagued humankind for more than five thousand years. It can also mean to "consume", ...... More »
What is BOP?
It is called as Balance of payments - an economic term. (BOP) measures the payments that flow between any individual country and all other countries. It is used to summarize all international economic transactions for that country during a specifi...... More »
What are financial centers?
Banks and brokerage firms are considered financial centers ...... More »
What is the difference between an economic luxury and an economic necessity?
An economic luxury is wasting land on pools huge garden, etc. An economic necessity is what you need a certain amount of space (houses) to make something very necessary (to live in) ...... More »
What is the incidence of tax?
Well tax incidence refers to who actually pays the tax. Tax incidence can be divided into- 1. Formal incidence: the party liable to the tax 2. Informal incidence: party, who actually pays the tax The tax in...... More »
Is it true that government revenues are increased because of lower tax rates?
It is true to a point. The Laffer curve shows that revenues increase as the tax rates rise (0 tax rate = 0 revenue) up to a point, but the increase slows as the rate rises higher and at some point total revenue begins to decline. If your increment...... More »
What is inflation and how is it measured?
Inflation means an overall increase in the prices of goods and services. It is a decrease in the value of a currency. There are three types of measurement, Core Inflation, CPI, and WPI. Core Inflation is a measurement of non-volatile goods such as...... More »