Partnership Firms

Definition According to the Partnership Act 1890, “Partnership is a voluntary association of people (from two to twenty) which is formed to carry on business with the view to make profit”. Partne…

Consumer Spending Saving and Borrowing

Consumer Spending  1. Who is a consumer? The person who uses the goods and services for final consumption 2. What is spending? Paying out money in buying or hiring goods and serv…

Costs of Production

Meaning Cost of production refers to the prices paid by the firm in order to obtain the materials and services required for the production process.  There are two types of costs. 1. Variab…

Here is How You See the Maldives from the Sky

Topic 07: Distribution

Introduction  Distribution  Advertisement  Purpose of Advertising  Advantages of Advertising  Types of Advertisements  Informative Advertising  Persuasive Advertising  Media of Adver…

Introduction to Costs of Production

Cost  Cost refers to the amount of money spent by the firm on the goods and services which are required for the production process.  Revenue  Revenue refers to the income received by th…

Topic 08: Size of Firms

Growth of Firms Meaning of firm Reasons for growth and ways to grow Integration and its types Economies of Scale  Meaning Relationship with average cost Types of Economies of Scale (i…

Survival of Small Firms

How do we measure the size of firms?  The size of the firm is measured on the basis of the following criteria.  The number of employees  The value of the capital employed  The value of…

Chuck Williams Successfully Crowdfunds Mass Production of a Trump Troll Doll

Former Walt Disney sculptor Chuck Williams raised USD 57,000 in just a week against the USD 34,000 target. He turned to Kickstarter in order to crowdfund mass production of 45th US President …

Growth of Firms

What is a firm?  A firm is a unit of management trading under a particular name. It is a decision making production unit. An industry is made up of all those firms producing the same commodit…

Measuring the National Income

Definition  National Income refers to the total money value of the output of goods and services produced by the factors of production owned by a particular country over a one-year period.  …

Trump Bans These Media Outlets from Entering the White House

President Donald Trump vowed this week to “do something” about the “cunning” media who he’s called “the enemy” of the American people and now he has barred these media outlets from the White Hous…

General Equilibrium Theory

What is the 'General Equilibrium Theory' General equilibrium theory, or Walrasian general equilibrium, attempts to explain the functioning of economic markets as a whole, rather than as i…

Topic 23: The National Economy

Introduction to National Income Introduction Gross Domestic Product  Gross National Product  Net National Product  National Income  Definition  Methods of Measuring the National Inco…

Cost, Revenue and Profit

Cost  Cost refers to the amount of money paid out by the firm in obtaining resources required to carryout production.  Revenue  Revenue refers to the money received by the firm for its …

Economies of Scale

Economies of Scale  Economies of scale refers to the fall in long run average cost of the firm due to expansion of its scale of production.  This is concerned with monetary or economic be…

The Circular Flow of Income

Definition  The Circular Flow of Income (CFI) refers to the continuous circulation of income and expenditure among the economic agents.  A Closed Economy  The following illustrates the C…

These MPs Voted FOR Foreign Freeholds in Second Amendment to Constitution

On 22nd July 2015, the Maldives parliament amended the constitution to authorise foreign ownership of land or freeholds in the Maldives with overwhelming support of 70 votes in favour, only a day aft…