A centrally planned economy is an economic system in which economic decisions are made by the government of a country through a central economic planning bureau. It is also called a command economy and is associated with a socialist or communist economic system.
Solid minerals are naturally occuring substances derived from the earth which are of great value to man. They include metalic ores, fuel minerals (such as coal. uranium, signet, tar sands), industrial minerals and rocks (such as limestones, marble, etc.) and gemstones/ornamental stones.
Traditional economic system is the type of economy system that prevailed in all independent human organization or settlements prior to their contact with the outside world. In Africa, for instance, feudalism and communism predominated before contact with Europeans.
In mixed economic system, decisions regarding what, how and for whom to produce are partly handled by the state and partly by the individuals and private organizations.
What is Free Enterprise System?
Free enterprises system is an economic system that believes in the efficacy of the interplay of market forces of demand and supply in the allocation and distribution of scarce societal resources.
Free enterprise economic system believes in the right of individuals to-own any property through legal...
According to Professor Robbins, Economics may be defined as “a Science which studies human behaviour as a relationship between ends and scarce means which have alternative uses."
Why Economics is a Science? | Economics is called a science subject because it uses scientific measures to explain, observed phenomena and predict the outcome of future events. This scientific method of observation is generally referred to as inductive method.
Basic Problems of Economics | Scarcity and choice are the cardinal problems faced by economists and the society at large. The study of economics is necessitated by scarcity and the problem created by scarcity has led to choice.
Opportunity cost means the alternative foregone or sacrifice made in order to satisfy another want. It refers to the need that is left unsatisfied in order to satisfy another more pressing need.
Scale of preference refers to a list of individual wants in order of their relative importance. The drawing of scale of, preference will make it easier for choice to be made.
Why Study Economics? - The study of economics assists individuals to be independent and be practical individuals. This is possible through the application of practical approaches to emerging issues and providing solutions to deny problems.
Economic growth is a sustained regular increase in total national income. This regular increase might have been brought about by an increase in the capacity to produce more goods and services.
The value of money (TVM) is the perception attributed to money at a given time taking into account economic circumstances that influence it, such as inflation.
Globalization is a phenomenon based on the continuous increase in the interconnection between the different nations of the world on the economic, political, social and technological levels.
The use of this term has been used since the 80s. That is, since technological advances have facilitated and accelerated international commercial and financial transactions. And for this reason, the phenomenon has as many defenders - such as the International Monetary Fund (IMF) or the World Bank - as detractors.
The effective value is that market value obtained through the purchase or sale of a financial asset or right, such as credit instruments or bills of exchange.
In the field of financial and stock market economics, the concept of cash value is frequently used. In practice, it is the value assigned to a financial instrument or right when it is transferred through a sale.
The concept of customer lifetime value is the value that a customer has for a company based on the time and transactions that can be carried out during that term.
Privatization is a policy of the government created to afford individuals, corporate bodies, the opportunity to take over ownership and control of government enterprises, companies, etc. while Commercialization is a state policy of making its companies, enterprises, parastatals, etc, more efficient and even more profit oriented. It will also make these organisations come up with efficient management of resources.
The intrinsic value of an option is the difference between the price of the underlying asset in the market and the exercise price.
Intrinsic value is always positive. When the difference between the price of the underlying asset and the strike price is negative, the intrinsic value equals 0. At expiration, the intrinsic value is the value of the option.
Devolution is an economic concept based on the disintegration or atomization of powers within an organization, company or state. This supposes the dispersion of decision-making and resources in different hierarchies or regions.
The intrinsic value, theoretical price or fundamental value of an asset, is the value that is obtained taking into account all the components that surround an asset, including tangible and intangible elements. It is also sometimes known as real value.
