What is Qualified Business Income?

The term “qualified business income” refers to income that meets certain requirements. The tax rules regarding qualified business income vary from state to state. The most common examples of qualifying income are: dividends, interest, rents, and some capital gains. Generally,

COVID-19 – In a turbulent economy it’s time to economise

The Law of Supply and Demand Effects Your House Prices

Real estate economics is a method of economic theory that studies the relationship between supply and demand in relation to the structure of the housing market. It attempts to explain, predict, and examine long-run trends of prices, demand, and supply

What is the theory behind Command Economy?

The theory behind what is a command economy can be understood using the example of the car manufacturing company in which two completely different plans were implemented, one that produced cars in a country where it cost more to build

Consumer Confidence and Its Role in the Economy

A market economy works under the general laws of demand and supply. It is characterized by individual ownership, mobility, self Interest, optimal private investment, minimal government intervention, and concentrated competition. In a market economy, prices are regulated through competitive market

Economies Of Scope And Complexity In The Process Of Growth

Economies of scope are those “efficiencies formed by difference, not size”. In business, “economies of scope” is often synonymous with broader marketing, branding, sales, distribution, and logistics, all of which offer the advantage to a company by having a smaller

Understanding The Income Effect On Consumption

In real life, there does exist something called the income effect. It can be the greatest thing in the world for you, or the absolute worst. For me, it is mostly the latter. But if you are a consumer or

Middle Class Means Different Things to Different People

The middle class is a broad category of individuals at the middle of some socio economic hierarchy. Its use has, in recent times, often been vague enough to be defined only in terms of income, occupation or social ranking. Any

Chinese Dream – Economic Reforms – Are They Enough?

In the Chinese view, currency depreciation is considered as negative income for the exporters, which is unfavorable for the overall economic condition. For such a reason most of the export orders are cancelled in a rapid pace. The Chinese economy

Net Working Capital Cycle

Net Working Capital is a key part of the Equifax Financial Statement used by virtually all companies large and small to operate their day-to-day operations. The term “Net Working Capital” is most commonly used in the context of business finance,

Direct Foreign Investment Strategies For Asian Economies

A foreign direct investment is an outwardly-directed investment made by an individual or organization in one country to business interests located in a different country. In general, FDI occurs when an individual establishes foreign direct business operations or acquisitions foreign