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 countries.
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Customer
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 external
Employees: Their Influence on the Company
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 include: Comfortable
How elasticity affects total revenue
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 price
How substitution affects elasticity?
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 product or
The real reason why the central bank intervenes the foreign exchange market
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. Among the
Why is capitalism said to widen greater economic inequality?
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 ultimately leads
How are the production possibility curve and the opportunity cost interrelated?
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 technology. Take an
Hidden Unemployment: Types, Causes, Effects on the Economy
What's it: Hidden unemployment refers to people who are unemployed, but not reflected in official unemployment rates. It includes those who stopped looking for work due to discouragement and those who worked but were underused. Sometimes, the term