Raises in economy

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Economic indicators are key stats about the economy that can help you better understand where the economy is headed. These indicators can help investors decide when to buy or sell investments. For ex, if the stock market is at its peak, you may want to sell. If the market is low and on the rise, you may want to buy. Economic indicators can help you understand this ebb and flow of the market, as well as other important financial factors. Here are several of the different types of economic indicators and how they may be used to understand the state of the economy.

 

Three types of economy

Leading indicators point to future changes in the economy. They are extremely useful for short-term predictions of economic development because they usually change before the economy changes.

Lagging indicators usually come after the economy changes. They are generally most helpful when used to confirm specific patterns. You can make economic predictions based on the patterns, but lagging indicators cannot be used to automatically  predict economic change.

Coincident indicators provide valuable information about the current state of the economy within a particular area because they happen at the same time as the changes they signal.

WHAT ARE ECONOMIC SCALES ?

 

Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable.

 

Economies of scale are cost advantages companies experience when production becomes efficient, as costs can be spread over a larger amount of goods.

A business's size is related to whether it can achieve an economy of scale—larger companies will have more cost savings and higher production levels.

Economies of scale can be both internal and external. Internal economies are caused by factors within a single company while external factors affect the entire industry.

Market Economy

 

A market economy is an economic system in which economic decisions and the pricing of goods and services are guided by the interactions of a country's individual citizens and businesses. There may be some government intervention or central planning, but usually this term refers to an economy that is more market oriented in general.

In a market economy, most economic decision making is done through voluntary transactions according to the laws of supply and demand.

A market economy gives entrepreneurs the freedom to pursue profit by creating outputs that are more valuable than the inputs they use up, and free to fail and go out of business if they do not.

Economists broadly agree that market-oriented economies produce better economic outcomes, but differ on the precise balance between markets and central planning that is best for a nation's long-term wellbeing.

Digital Economy

 

Although some organizations and individuals use technologies to simply execute existing tasks on the computer, the digital economy is more advanced than that. It is not simply using a computer to perform tasks traditionally done manually or on analog devices.

Instead, the digital economy highlights the opportunity and the need for organizations and individuals to use technologies to execute those tasks better, faster and often differently than before.

Moreover, the term reflects the ability to leverage technologies to execute tasks and engage in activities that weren't possible in the past. Such opportunities for existing entities to do better, to do more, to do things differently and to do new things is encompassed in the related concept of digital transformation.