Institutional units

Institutional units: Is an economic entity that is capable of owning assets in its own right, and incurring liabilities. Can engage in economic activies and transactions with other entities Can exchange ownership of goods or assets Is responsible for its actions by law Can enter into contracts Provides financial statement information Residence A institutional unitContinue reading “Institutional units”

Some big economical tips

Get out of debt. A mortgage on one’s home is a logical exception, provided the price is right. Borrowing for one’s business is also an exception if based on a sound business plan. Speculative investments are not a good idea in these times unless they are made with money you can afford to lose. PickContinue reading “Some big economical tips”

Leading economic indicators

■ Average workweek of production workers in manufacturing. Because businesses often adjust the work hours of existing employees before making new hires or laying off workers, average weekly hours is a leading indicator of employment changes. A longer workweek indicates that firms are asking their employees to work long hours because they are experiencing strongContinue reading “Leading economic indicators”

Financial markets

What do markets do? Financial markets take many different forms and operate in diverse ways Price setting. The value of an ounce of gold or a share of stock is no more, and no less, than what someone is willing to pay to own it. Markets provide price discovery, a way to determine the relativeContinue reading “Financial markets”