Month: June 2020

Comparison between Profit and Value/Wealth Maximization Goal of the Corporation

Financial management is concerned with decision making regarding the size and composition of assets and the level and structure of financing. To make a wise financial decision in any corporation requires a clear understanding of the objective that is to be achieved. So the objective or goal provides a framework for optimal financial decision making. …

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Difference Between Economic Model and Econometric Model

Economic theories try to define the relationship between different economic variables. These relationships can be expressed into varieties of firms like graphs, tables, mathematical equations, and so on to make them more undersetting and more general. If the theoretical relations or theoretical models are checked against real-world data and if empirical data verify the relationship …

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Types of the Economic Model

In economics, the model is defined as a theoretical construct that represents the economic relationship between different sets of variables with help of definite assumptions, and a set of logical equations or functions relating to a particular well-defined problem. Thus the model is a description of the relationship between two or more economic variables. For …

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Sources of Economic Growth/Factors Affecting Economic Growth

Economic growth is the steady procedure by which the productive capacity of the nation or economy is increased over time to bring an increased standard of living and national output. It is affected by different economic as well as non-economic factors. The different sources of economic growth or factors affecting economic growth are pointed by …

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Meaning of Economic Growth and the Difference between Growth and Development

The term economic development is fundamentally different from the concept of economic growth. In an ordinary sense, the term economic growth is related to the rate of change in GDP or per capita income of the people of the country. Growth concerns the quantitative aspect of change and growth. So, economic growth is a sustained …

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Economics and its Impact on Public Policy

In the 18th century, economics was called political economy. At that time, the main purpose of economics was to assist in the formulation of public policy and to guide policymakers, and for this reason, economics was known as political economy. Economists, regardless of whether the state or the government agreed, thought that they should advocate …

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