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
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
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
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:
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:
- Posters
- Product status displays
- Battery product presentations
- Product variety
- Decorations
- Movement and lighting
- Competitions
- 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
Read MoreMacroeconomics: 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