Economics

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Traditional economic systems are economies based on dissemination of resources, products and goods based on rituals, routines and customs. Some nations have traditional economies, while traditional economies exist regionally or locally in other places. Regardless of whether local or national, traditional economies revolve around the production and exchange of simple, staple goods such as food and clothing.

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  • How Does Monetary Policy Affect Unemployment?

    Q: How Does Monetary Policy Affect Unemployment?

    A: Monetary policy, established by the federal government, affects unemployment by setting inflation rates and influencing demand for and production of goods and services. Additionally, having stable prices and high demand for products encourages firms to hire workers, which reduces rates of unemployment. In the United States, the Federal Reserve holds responsibility for instituting a national monetary policy. Sometimes, such as during economic downturns, the Federal Reserve asserts its control by implementing long-term and short-term measures to stimulate economic production.
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  • What Is a National Economy?

    Q: What Is a National Economy?

    A: A national economy refers to the economy of an entire country. The national economy includes financial resources and management. It encompasses the value of all goods and services manufactured within a nation.
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  • What Is the Definition of Global Business Environment?

    Q: What Is the Definition of Global Business Environment?

    A: The definition of global business environment is multiple sovereign nations outside of the organization's home environment influencing how the organization makes decisions for how to use its resources. The company's operating situation depends on both external and internal factors.
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  • What Role Do Banks Play in a Nation's Economy?

    Q: What Role Do Banks Play in a Nation's Economy?

    A: Banks play an important part in a nation's economy by providing a safe foundation for individuals and businesses to invest or deposit their money, which allows the bank to use the money in its possession for loans. The ability for the public to receive these loans enables them to make purchases, which drives the economy at different levels.
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  • What Is a Macro Theory?

    Q: What Is a Macro Theory?

    A: In academics, macro theories attempt to explain the entirety of a subject in general or broad terms. This is in contrast to micro theories, which focus in detail on more specific elements of the discipline.
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  • What Is a Monetary Instrument?

    Q: What Is a Monetary Instrument?

    A: A monetary instrument is a form of domestic or foreign currency that includes, but is not limited to, checks, certain investments, traveler’s checks and money orders, according to the State of Connecticut Judicial Branch. This is the legal definition that government bodies use.
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  • What Are Characteristics of a Traditional Economy?

    Q: What Are Characteristics of a Traditional Economy?

    A: A traditional economy is an economic system where customs, traditions and beliefs determine the goods and services created by the society. It is dependent on agriculture, hunting and gathering, fishing or any combination of the above. Also called a subsistence economy, it may involve use of barter trade instead of currency.
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  • What Are Quality Consciousness Habits and Processes?

    Q: What Are Quality Consciousness Habits and Processes?

    A: Quality consciousness habits and processes are part of a management philosophy that seeks to improve quality constantly rather than just to meet a certain set goal. Companies employ quality consciousness processes on an organizational level to improve their products. In addition, individuals benefit when they build quality consciousness habits into their thoughts and behaviors.
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  • What Are the Three Types of Economic Resources?

    Q: What Are the Three Types of Economic Resources?

    A: The three types of economic resources are commonly known as human resources, natural resources and capital resources. Economists often refer to these three resources as the factors of production.
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  • What Were Karl Marx's Contributions to Economics?

    Q: What Were Karl Marx's Contributions to Economics?

    A: Karl Marx's primary contribution to economics was a new framework that described economics as a struggle for power between different classes. His critiques of capitalism have been accepted by many economic theorists. His work has also spawned countless debates.
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  • What Kind of Economy Does Argentina Have?

    Q: What Kind of Economy Does Argentina Have?

    A: Argentina has a free-market economy heavily based on agriculture and agricultural exports. The country also has growing industrial and service sectors. The quality of life and GDP per capita are relatively high, especially when compared to other countries in Latin America.
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  • What Are Third World Countries?

    Q: What Are Third World Countries?

    A: Third world countries are underdeveloped nations where poverty is rampant. Third world countries also referred to nations that never sided with the policies of the United States or the former Soviet Union during the Cold War.
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  • What Type of Economy Does the United States Have?

    Q: What Type of Economy Does the United States Have?

    A: The United States has a capitalist economy. Capitalism is an economic system in which businessmen privately own the means of production, which is referred to as capital. Free market competition dictates prices and production levels. Under the capitalist system, prices and salaries are determined by supply and demand. The government’s role in this system is to protect the rights of financial motivators of the economy.
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  • What Is the Importance of Economics?

    Q: What Is the Importance of Economics?

    A: Economics and economic education are important for providing people with valuable insight into how foreign and domestic markets operate, which allows them to make reasoned and rational choices for short-term and long-term financial benefits. Studying economics also allows people to learn how to manage and most effectively use scare and finite resources such as time and money. Studying economics equips people with varying levels of financial literacy, which allows them to effectively manage their own finances and even advise others in financial management and planning, too.
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  • Who Uses the Barter System Today?

    Q: Who Uses the Barter System Today?

    A: Bartering is a popular form of trade for individuals, families and businesses seeking to save money. Some small- and medium-sized businesses join bartering networks to exchange various goods and services. Barter networks help businesses grow by brokering deals to exchange items such as copiers, phone systems, work shirts, carpet cleaning and even real estate.
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  • What Is the Primary Purpose of Business?

    Q: What Is the Primary Purpose of Business?

    A: The primary purpose of business is to make money. A business may sell a product or provide a service in its effort to make money for its owner or owners.
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  • What Countries Have a Market Economy?

    Q: What Countries Have a Market Economy?

    A: Countries whose economies attract minimal involvement of the government have a market economy. According to a 2013 Index of Economic Freedom, the United States, Canada, Denmark, the United Kingdom, Hong Kong and Mauritius have a market economy. Most market economies have a degree of state-dictated planning and are thus categorized as mixed economies.
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  • What Products Does Germany Import or Export?

    Q: What Products Does Germany Import or Export?

    A: Germany is well known for exporting motor vehicles and importing oil. Germany is the third largest exporter and importer in the world.
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  • What Is a Domestic Business?

    Q: What Is a Domestic Business?

    A: A domestic business is a company that operates only within the borders of a single country. A domestic U.S. company is the opposite of a global company that does business in many countries. Domestic businesses only have to worry about domestic business operations, record-keeping and tax obligations.
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  • What Drives Globalization?

    Q: What Drives Globalization?

    A: Globalization is driven by international trade and investment and aided by information technology. It is the process of interaction and integration among the people, companies and governments of different nations, states Globalization 101, a website of the Levin Institute.
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  • What Is the Largest Sector of the Macroeconomy?

    Q: What Is the Largest Sector of the Macroeconomy?

    A: The largest sector of the macroeconomy is the government. The other sectors of the macroeconomy include the household sector, the business sector and the foreign sector.
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