Core Macroeconomic Concepts: GDP, Inflation, Unemployment

1. GDP and National Income Measurement

Limitations of GDP in Terms of Production

  • The informal economy
  • Illegal activities
  • Domestic work

Other National Income Measures

  • Gross National Income (GNI) = GDP + income that domestic citizens earn abroad – income that foreigners earn in the domestic country
  • Net National Product (NNP) = GNI – depreciation of capital

Challenges in GDP Comparison

  • Different population sizes: Addressed by GDP per capita
  • Different currencies: Addressed by converting GDP to U.S. dollars
  • Different
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Essential Business Finance Terminology Explained

Key Business Finance Terms Defined

Business Angels
Wealthy entrepreneurs who risk their own money by investing in small to medium-sized businesses that have high growth potential.
Capital Expenditure
Investment spending on fixed assets such as the purchase of land and buildings.
Debt Factoring
A financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee.
External Sources of Finance
Getting funds from outside the organization, e.g., through debt
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Key Concepts in Transportation and Trade

Space Tourism: Areas with a high influx of tourists (foreign or domestic) experience the highest densities in sun and beach tourism destinations.

Trade Balance: This refers to the registration of a country’s imports and exports over a specific period. The trade balance is the difference between exports and imports, reflecting a country’s goods sold abroad versus its purchases from other countries. There are two types:

  • Positive: When the value of exports exceeds the value of imports (selling more than
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Fundamentals of Banking and Account Management

Understanding Basic Banking Operations

The financial system has two primary objectives:

  • Capturing surplus financial resources (savings) while ensuring interest and security for recoverable deposits.
  • Meeting the financial needs of borrowers by providing funds, for which interest is charged.

These activities involve different types of banking operations:

  • Passive Operations: These consist of raising funds from customers (e.g., deposits) and represent the main source of funding for banks.
  • Lending Operations:
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Effective Merchandising and Distribution Strategies

Merchandising Strategies

Merchandising: A set of media that helps to showcase a product at the point of sale.

Key Merchandising Elements:

  1. Posters
  2. Product status displays
  3. Battery product presentations
  4. Product variety
  5. Decorations
  6. Movement and lighting
  7. Competitions
  8. Demonstrations and tastings

Distribution Functions

Transportation

Transportation: Decisions affecting the most appropriate means of transport, batch size, and frequency.

Storage

Storage: Can occur at various stores involving intermediaries in the distribution

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Macroeconomics: Understanding GDP, Income, and Expenditure

Economics Fundamentals

Microeconomics

  • Focuses on how individuals and firms make decisions.
  • Examines interactions in specific markets.

Macroeconomics

  • The study of economy-wide phenomena.
  • Includes topics like inflation, unemployment, and economic growth.

Income and Expenditure in Macroeconomics

Gross Domestic Product (GDP)

  • Measures the total income of everyone in the economy.
  • Also measures the total expenditure on the economy’s output of goods and services.

Income Equals Expenditure Principle

  • For the economy
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