Asset or Liability? Test Your Accounting Knowledge With This Quick Quiz
Lost on assets and liabilities? Actress Mae West once said, “Brains are an asset to the woman in love who’s smart enough to hide ‘em.” While you …
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Greenspan Says Print More Money: The Fed and Our Fiat System
Former Fed chairman Alan Greenspan’s recent statement that we can simply print more money can be interpreted in two ways. Is he bonkers, or he …
Continue ReadingUnderstanding What The Consumer Surplus Is with Examples
The maximum price consumers are willing to pay for certain goods or services defines their level of satisfaction and the demand for these goods or …
Continue ReadingDid Standard and Poor's Leak Information About the Downgrade?
Standard and Poor’s–aka S&P–has roamed outside its prescribed jurisdiction in downgrading the United States’ credit …
Continue ReadingAn Explanantion of the Absolute Priority Rule
If a company were to go bust, how would its limited assets repay its sundry liabilities? Would those who happen to be at the right place at the right …
Continue ReadingComprehending the Circular Flow of Income as an Economic Model
People read and hear economic news every day, but sometimes it doesn’t make much sense to ordinary citizens. What do some of us really understand …
Continue ReadingSample Schedule of Cash Receipts: Understanding Its Use--and the Users
A cash receipts schedule is not a regular reportorial requirement in the ordinary flow of business transactions–hence not many people are in the …
Continue ReadingWhy Natural Monopoly is Regarded as a Necessary Evil
Generally, the concept of natural monopoly applies to businesses that take care of the generation, extraction and distribution of basic utilities like …
Continue ReadingAbsoute Advantage Theory Explained -- With Examples!
According to the theory of absolute advantage it is worthwhile for a country to specialize in the production of those goods that it can manufacture …
Continue ReadingBusiness Fraud Explained
Every day somewhere in the world a fraudulent crime is committed. This white collar crime is very prevalent in today’s world. The article will …
Continue ReadingDo Similarities Between Fair and Free Trade Outweigh the Differences?
Advocates of free trade argue that by specializing in those goods and services which they produce most efficiently countries may engage in …
Continue ReadingExamples of Current Price Floors and Ceilings in Today's Economy
Price floors and ceilings are a mechanism used by governments to ensure that prices of certain products or services are appropriate for particular …
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