What are leading, lagging and coincident indicators?

June 30, 2024 No Comments

A: An indicator is anything that can be used to predict future financial or economic trends. For example, the social and economic statistics published by accredited sources, such as the various departments in the U.S. government, are indicators. Some of the popular indicators they put out include

What are some historic examples of hyperinflation?

June 30, 2024 No Comments

A: Hyperinflation is an extreme case of monetary devaluation that is so rapid and out of control that the normal concepts of value and prices are meaningless. Hyperinflation is often described as inflation exceeding 50% per month, though no strict numerical definition exists. This catastrophic

What are some advantages of a market economy over other types of economies?

June 30, 2024 No Comments

A: A market economy is a system in which the economic decisions and the prices of goods and services are determined by supply and demand. The assumption behind a market economy is that supply and demand are the best determinants for an economy’s growth and

What are some limitations of the consumer price index (CPI)?

June 30, 2024 No Comments

A: The consumer price index, or CPI, is considered one of the most fundamental and critically important economic indicators, not only in the United States but in virtually every other developed nation as well. The release of monthly CPI numbers almost invariably has a significant

What are some common features of a mixed economic system?

June 30, 2024 No Comments

A: A mixed economy is defined by the co-existence of a public and private sector. The specific mix between public and private can vary significantly from one mixed economy to another, however. Based on their respective natures, the private sector is subservient to the public

What are some of the drawbacks of industrialization?

June 30, 2024 No Comments

A: In economic history, industrialization is the social and economic transformation of the human group from an agrarian society to an industrial society. Environmental drawbacks include high pollution of air, water and soil that can result in significant deterioration of quality of life and life

What are some current examples of oligopolies?

June 30, 2024 No Comments

A: Oligopolies are prevalent throughout the world and appear to be increasing ever so rapidly. Unlike a monopoly, where one corporation dominates a certain market, an oligopoly consists of a select few companies having significant influence over an industry. Oligopolies are noticeable in a multitude

What are some of the limitations and drawbacks of economics as a field?

June 30, 2024 No Comments

A: Economics is a social science that examines how people produce, distribute, and consume goods and services. This means that much of the field is based on human behavior, which can be somewhat irrational and unpredictable. For this reason, it has certain inherent limitations that

What are some examples of “pork barrel politics” in the United States?

June 30, 2024 No Comments

A: So-called “pork barrel politics” has been present in the United States’ legislative and, to a lesser degree, executive branches since the 1800s. Generally used in a derogatory manner, the term refers to the practice of politicians trading favors granted to constituents or special interest

What are some examples of companies that are Value-Added Resellers?

June 30, 2024 No Comments

A: Among the most common value-added resellers are computer retailers and service companies, automobile dealerships and furniture stores. Value-added resellers are businesses that sell products manufactured by other companies in addition to selling their own supplemental products and services, thereby increasing the value of the

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