Is demand or supply more important to the economy?

June 30, 2024 No Comments

A: Supply and demand are both key to economic activity. The two influence each other and impact prices of consumer goods and services within an economy. Supply is the amount of a particular good or service available at a given time to consumers. Consumers, expressing

Is economics a science?

June 30, 2024 No Comments

A: Economics is generally regarded as a social science, although some critics of the field argue that economics falls short of the definition of a science due to a number of reasons, including a lack of testable hypotheses, lack of consensus and inherent political overtones.

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

June 30, 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

Is gross national income (GNI) or gross domestic product (GDP) a better measure of the economic condition of a country with substantial foreign investment?

June 30, 2024 No Comments

A: While gross domestic product, or GDP is among the most popular of economic indicators, gross national income, or GNI, is quite possibly a better metric for the overall economic condition of a country whose economy includes substantial foreign investments. This is because the GNI

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

June 30, 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?

June 30, 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?

June 30, 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 important are seasonal trends in the automotive sector?

June 30, 2024 No Comments

A: The automotive industry has some definite seasonal trends, with peak demand occurring in the spring and fall, and lowest sales in December, January and February. The auto industry is an important element of the entire U.S. economy. The automobile sales level is often seen

How is a market failure corrected?

June 30, 2024 No Comments

Imperfect market outcomes are corrected through a reallocation of resources or change in incentive structure. Economists have different opinions about the nature of market failures and what (if any) measures need to be taken to prevent or correct them. What is a Market Failure? It’s

How is an economy formed and why does it grow?

June 30, 2024 No Comments

A: Broadly speaking, an economy is an inter-related system of human labor, exchange and consumption. An economy forms naturally from aggregated human action – a spontaneous order, much like language. Individuals trade with each other to improve their standards of living. Improved standards of living

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