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Knowing the determinants of consumption expenditure is essential. Governments often look for ways to stimulate consumption to encourage economic growth. Consumer spending is a significant driving force in the economies of several

Customers are parties who buy goods or services directly. They can be individuals, businesses, organizations, or governments, depending on their target market. They can also come from internal (such as employees and shareholders) and

Employees are people who do tasks based on the direction of the manager. They do daily tasks according to job descriptions. In return, they get wages or salaries. In addition to higher salaries, their interests in the company

Before answering how elasticity affects total revenue, you need to recall the following concepts in economics: Own-price elasticity of demand. It measures the responsiveness of changes in quantity demanded when prices change. Demand is

The presence of substitution affects elasticity because it provides alternative choices in consuming products or services If a substitute product is available, consumers tend to turn to these alternative products when the price of a

A stable exchange rate is one of the macroeconomic goals. In the flexible exchange regime, the exchange rate of the domestic currency continues to move, influenced by fundamental factors such as demand and supply and speculative factors.

Economic growth under capitalism may far exceed the growth of other economic systems. However, often, this system produces widening inequality or economic inequality.  The accumulation of private capital is inevitable. This

The production possibility curve or production possibility frontier is a graphical representation that shows the combination of outputs that might be produced by the economy using available production factors and production

Economist John Maynard Keynes spearheaded a revolution in economic thought. His argument overturned the idea prevailing at the time, namely that the free market would always automatically bring the economy into full employment. The great

Economists often offer conflicting suggestions regarding certain economic phenomena either because of differences in scientific judgment or because of differences in values. At other times, economists share the same view in the advice they

Galloping inflation refers to a condition when the inflation rate is extraordinarily high. It is perhaps 20%, 50%, or even higher on an annual basis. In this period, out of control inflation exacerbates an economic recession. Some countries

Defensive marketing is a marketing strategy that focuses on protecting the market position rather than expanding the market. It is a common strategy for long-established companies in the market. Companies must maintain the current product

The labor dispute is a controversy between management and labor over the terms and conditions of the workplace. Disputes are common in the labor market. They can take many aspects of the work environment, including working conditions, hours

Labor cost ratio is equal to direct labor cost divided by total sales, expressed as a percentage. The ratio shows us labor contributions to produce each sales dollar. Salaries typically account for a large portion of costs. Therefore, by

Labor cost ratio is equal to direct labor cost divided by total sales, expressed as a percentage. The ratio shows us labor contributions to produce each sales dollar. Salaries typically account for a large portion of costs. Therefore, by