Money supply means how much money is available in the economy Money supply can be controlled by the government Interest rate The cost one has to pay for borrowing money Interest can be annual or monthly If a person lends …
3.5.1 Classification of Firms Firms can be classified based on: A. Sector of the Economy Primary Sector: Firms engaged in extraction of natural resources (e.g., farming, fishing, mining). Secondary Sector: Firms involved in manufacturing and construction (e.g., car manufacturers, textile …
Demand of FOPs Product’s demand High demand means more FOPs required so they will be met some way as well Factor availability If factors available easily, demand could go higher Price of factors Simple rule of law of demand Factor …
3.7.1 Definition of Costs of Production Costs of production refer to the expenses incurred by a firm when producing goods or services. These include both fixed and variable costs. 3.7.2 Calculation of Costs of Production Key Cost Terms and Definitions: …
Budget It is a forecast statement It shows where the government will get its revenues from Where the government will spend its revenues Generally, the focus is on a balanced budget Government Spending Public goods and services are with the …
4.2.1 The Macroeconomic Aims of Government Governments use policies to achieve macroeconomic objectives that aim to improve the economic well-being of their country. The main aims include: A. Economic Growth Definition: An increase in a country’s total output of goods …
4.1.1 The Role of Government The government plays a crucial role in managing and influencing the economy at three levels: I. Local Level (Municipal/Regional Governments) Main Responsibilities: Provision of basic public services: Water supply, sewage, waste collection. Local policing and …
Competitive Markets Customer base is increased by winning against competition, along with profits and shares Price competition Lowest prices or best possible prices Non price competition Where the focus is excelling in aspects other than price Informative advertising Advertisement that …
Trade Unions Organizations that have workers as members that ensure that workers interests and requirements are promoted It focuses on gaining benefits for the customers and ensure their jobs become better Functions of trade union Non-wage benefits are negotiated Employees’ …
3.3.1 Factors Affecting an Individual’s Choice of Occupation A. Wage Factors Basic Pay (Wage/Salary): Higher wage generally attracts more workers. Overtime Pay: Payment for extra hours beyond normal work. Bonuses: Extra income based on performance or company profits. Commission: Percentage …