Economics

A:

Managerial capitalism posits that dominant CEOs would no longer run businesses but instead hired employees would run the businesses as a new class of professional CEOs. Adolf A. Berle and Gardiner C. Means first make this proposal in their 1932 treatise "The Modern Corporation and Private Property" in which they endorse the idea that owners turn companies over to professional managers.

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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 Is a Comparative Advantage Compared to an Absolute Advantage?

    Q: What Is a Comparative Advantage Compared to an Absolute Advantage?

    A: According to Library of Economics and Liberty, comparative advantage is when someone provides a good or service at a lower cost than his competitors. Absolute advantage occurs when a product or service provider is the best at producing a good or service over its competitors.
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  • What Are Some Advantages of Economies of Scale?

    Q: What Are Some Advantages of Economies of Scale?

    A: The most significant advantage of achieving economies of scale is a reduced cost per unit of production. Most other advantages stem from this primary benefit. A lower cost per unit allows a business to earn greater profit even when maintaining a similar price point. The company could pass on cost savings to customers by operating with a low-price strategy.
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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 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 Is the Economic Meaning of Demand?

    Q: What Is the Economic Meaning of Demand?

    A: In economics, demand is a measure of how much buyers want or need a product. For example, consumers may collectively avoid buying a particular product because they don't understand it or don't believe it has value, resulting in low demand.
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  • What Are Some Major Industries in Mexico?

    Q: What Are Some Major Industries in Mexico?

    A: Mexico’s major industries include food and beverages, iron, steel and petroleum. Since the 1980s, Mexico’s economy has relied primarily on manufacturing.
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  • Why Did the Savings and Loan Crisis Happen?

    Q: Why Did the Savings and Loan Crisis Happen?

    A: The savings and loan crisis of the 1980s occurred when the government loosened regulations on savings and loan institutions, allowing them to diversify into riskier and more profitable financial investments. This resulted in a massive increase in real estate construction, especially in markets like Texas. When there was not enough demand for these new constructions, and loans began to fail, the industry found itself in financial peril.
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  • What Is the Definition of Managerial Capitalism?

    Q: What Is the Definition of Managerial Capitalism?

    A: Managerial capitalism posits that dominant CEOs would no longer run businesses but instead hired employees would run the businesses as a new class of professional CEOs. Adolf A. Berle and Gardiner C. Means first make this proposal in their 1932 treatise "The Modern Corporation and Private Property" in which they endorse the idea that owners turn companies over to professional managers.
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  • What Kind of Economy Does Indonesia Have?

    Q: What Kind of Economy Does Indonesia Have?

    A: Indonesia has a mixed economy, characterized by a combination of large private conglomerates and state-owned enterprises. It is part of the CIVETS group of countries, along with Columbia, Vietnam, Egypt, Turkey and South Africa, which is expected to account for half of all economic activity by 2020.
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  • What Are the Branches of Economics?

    Q: What Are the Branches of Economics?

    A: The two major branches of economics are microeconomics and macroeconomics. Microeconomics deals largely with the decision-making behavior of individual consumers and firms in markets, while macroeconomics focuses largely on the aggregated behavior of all consumers and firms in an economy.
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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 Are the Positive Impacts of Tourism?

    Q: What Are the Positive Impacts of Tourism?

    A: Increased opportunities for business income and employment are primary economic advantages gained from tourism. Visitors often come with the intent of spending money on food and lodging, entertainment and souvenirs. Companies providing products and services that appeal to tourists see greater income than they would without the tourists.
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  • What Are Economic Factors?

    Q: What Are Economic Factors?

    A: Economic factors comprise the information that influences the value of an investment or business. When you are calculating the present and anticipated future value of an investment portfolio or a business, the economic factors are what you bear in mind. The primary economic factors are management, taxes, government policy, interest rates and labor costs.
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  • What Is Market Opportunity Analysis?

    Q: What Is Market Opportunity Analysis?

    A: Market opportunity analysis is a form of business planning that incorporates market forecasting techniques and development of a plan that assesses the organization’s financial capability and identifies future opportunities. It gives the company competitive and technological preparedness in exploiting future opportunities, and includes identifying underserved client needs and assessing the company’s resources. It also analyzes the competitive advantages of the business and identifies target markets.
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  • What Are the Drivers of Globalization?

    Q: What Are the Drivers of Globalization?

    A: The primary drivers of globalization are rapid advancements in technology, culture, economics and politics. With each passing year, the speed at which transactions take place and the spreading influence of cultural forces serve to integrate international societies. The most prominent driver of this trend is the advancement of technology.
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  • Who Is the Father of Economics?

    Q: Who Is the Father of Economics?

    A: Adam Smith is often considered the father of economics. Much of what is considered the standard of market theory was written by him over the course of two books, the "Theory of Moral Sentiments" and "An Inquiry into the Nature and Causes of the Wealth of Nations."
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  • What Is the Largest Component of GDP?

    Q: What Is the Largest Component of GDP?

    A: The largest component of GDP is consumer consumption. GDP is the acronym for gross domestic product, which is a measure of economic output.
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  • What Are Characteristics of a Command Economy?

    Q: What Are Characteristics of a Command Economy?

    A: A command economy is one in which the government is the chief agent in all major economic actions. The government goes as far as to determine what is to be made, how much is made, how it is distributed and how it is transformed into services the public can use. In many instances, even prices are set by the government.
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  • How Does Technology Affect the Economy?

    Q: How Does Technology Affect the Economy?

    A: Technology has affected the economy through direct job creation, contribution to GDP growth, creation of new services and industries, workforce transformation and business innovation. The use of technology has been linked to marketplace transformation, improved living standards and more robust international trade. Technology has revolutionized virtually every industry in 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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