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Economics, Accounting & Business: Post your doubts here!

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In learner guide
describe causes of DEFLATION
describe consequence of deflation
IGCSE ECONOMICS
help in this topic
Causes of deflation are:
1) Changes in structure of capital market
2) decrease in supply of currency
3) increased productivity

Effects of deflation are:
1) Reduce business revenues
2) changes in consumer spending
3) wages cut off of the employees
4) Reduced credits.
 
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Causes of deflation are:
1) Changes in structure of capital market
2) decrease in supply of currency
3) increased productivity

Effects of deflation are:
1) Reduce business revenues
2) changes in consumer spending
3) wages cut off of the employees
4) Reduced credits.

but what is credits
and how business revenue decrease
 
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but what is credits
and how business revenue decrease

1) When deflation rears its head, financial lenders quickly start to pull the plugs on many of their lending operations for a variety of reasons. First of all, as assets such as houses decline in value, customers cannot back their debt with the same collateral. In the event a borrower is unable to make their debt obligations, the lenders will be unable to recover their full investment through foreclosures or property seizures.

Also, lenders realize the financial position of borrowers is more likely to change as employers start cutting their workforce. Central banks will try to reduce interest rates to encourage customers to borrow and spend more, but many of them will still not be eligible for loans.


2) Businesses must significantly reduce the prices of their products in order to stay competitive. Obviously, as they reduce their prices, their revenues start to drop. Business revenues frequently fall and recover, but deflationary cycles tend to repeat themselves multiple times.

Unfortunately, this means businesses will need to increasingly cut their prices as the period of deflation continues. Although these businesses operate with improved production efficiency, their profit margins will eventually drop, as savings from material costs are offset by reduced revenues.
 
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1) When deflation rears its head, financial lenders quickly start to pull the plugs on many of their lending operations for a variety of reasons. First of all, as assets such as houses decline in value, customers cannot back their debt with the same collateral. In the event a borrower is unable to make their debt obligations, the lenders will be unable to recover their full investment through foreclosures or property seizures.

Also, lenders realize the financial position of borrowers is more likely to change as employers start cutting their workforce. Central banks will try to reduce interest rates to encourage customers to borrow and spend more, but many of them will still not be eligible for loans.


2) Businesses must significantly reduce the prices of their products in order to stay competitive. Obviously, as they reduce their prices, their revenues start to drop. Business revenues frequently fall and recover, but deflationary cycles tend to repeat themselves multiple times.

Unfortunately, this means businesses will need to increasingly cut their prices as the period of deflation continues. Although these businesses operate with improved production efficiency, their profit margins will eventually drop, as savings from material costs are offset by reduced revenues.
 
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hello guys,
can any one help me to tackle the essay questions of economics and business.
if any one of you have any idea about it,then please mail me in..sherpalakpa3102gmail.com
 
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Asa . Can someone please tell me which one is easier to do privately from bus and eco ?
How long does it take to prepare them ?
Which is shorter ?
Doesnt need a teacher ?
JazakAllah khair , please answer .
 
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Asa . Can someone please tell me which one is easier to do privately from bus and eco ?
How long does it take to prepare them ?
Which is shorter ?
Doesnt need a teacher ?
JazakAllah khair , please answer .
According to our teacher , 3-4 months are enough for alevels economics while 1-2 months for olvels eco ( if one works hard :p )
 
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Asa . Can someone please tell me which one is easier to do privately from bus and eco ?
How long does it take to prepare them ?
Which is shorter ?
Doesnt need a teacher ?
JazakAllah khair , please answer .

Walaikumsalam
Business studies can be done in 3-4 months. And it is easier than economics. You can even give All 3 papers of Business studies in one go I.e accelerated.
 
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Please introduce me accounting, maths and economics for AS level.My classes are starting from first sep and i dont know anything about them.such as how many components they have!What books to consult from!Are they easy or not etc..
 
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