How is productivity calculated?

July 7, 2024 No Comments

A: Productivity measures the efficiency of a company’s production process. It is calculated by dividing the outputs produced by a company by the inputs used in its production process. Common inputs are labor hours, capital and natural resources, while outputs are generally measured in sales

How is profit maximized in a monopolistic market?

July 7, 2024 No Comments

A: In a monopolistic market, there is only one firm that produces a product. There is absolute product differentiation because there is no substitute. One characteristic of a monopolist is that it is a profit maximizer. Since there is no competition in a monopolistic market,

How is the cost of living index calculated?

July 7, 2024 No Comments

A: There is no official cost of living index created or reported by the U.S. government. Unofficial indexes are offered by multiple organizations to track costs of living in different regions. An example is the ACCRA Cost of Living Index (ACCRA COLI), produced by the Council

How is the stock market affected by Thanksgiving and Black Friday?

July 7, 2024 No Comments

A: Black Friday – the name given to the first day after Thanksgiving – is one of the most important retail and spending events in the United States. Every holiday season, prognosticators make predictions about the level of sales on Black Friday, and investor confidence

How many multinational corporations operate in China?

July 7, 2024 No Comments

A: A very large group of multinational corporations operate in China, both Western and otherwise. China is one of the world’s fastest-growing economies, and its inhabitants make up almost 20% of the world’s population. Since its adoption of free-market principles, China has become one of

How much impact does government regulation have on the automotive sector?

July 7, 2024 No Comments

A: Government regulation in the automotive industry directly affects the way cars look, how their components are designed, the safety features that are included and the overall performance of any given vehicle. As a result, these regulations also have a significant effect on the automotive

How does the U.S. Bureau of Labor Statistics calculate the unemployment rate published monthly?

July 7, 2024 No Comments

A: The unemployment rate is one of the most closely followed indicators, used by businesses, investors and private citizens to gauge the health of the U.S. economy. Investor sentiment and consumer confidence have strong inverse relationships with the percentage of unemployed Americans. When the unemployment

How does the United States government measure economic growth?

July 7, 2024 No Comments

A: The most widespread measurement of national economic growth is gross domestic product, or GDP. The U.S. government collects and compiles economic data through the Bureau of Labor Statistics, or BLS. Once the data is organized, it is used by the Bureau of Economic Analysis,

How does total capital investment influence economic growth?

July 7, 2024 No Comments

A: An economy grows in only a few specific ways. People might find new or better resources, as with the discovery of oil wells in the 1850s. More people (or more productive people) might enter the workforce. Technology might be improved, as with the advent

How does price elasticity change in relation to supply and demand?

July 7, 2024 No Comments

A: The price elasticity of a product describes how sensitive suppliers and buyers are to changes in price. It doesn’t change in relation to supply and demand, but it defines the slope of each curve. A product with high price elasticity of demand will see

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