Tag Archives: Impact

Disposable Income: How to Calculate, Impact, Determinants

What it is: Disposable income is the money you have left after paying taxes. You can use it to save or buy goods and services. Disposable income is important to describe household purchasing power. When it increases, we expect them to increase spending. Increased spending stimulates businesses to increase production and recruit workers. As a result, the economy is growing, the unemployment… Read More »

Overcapacity: How to Measure, Impact, Influencing Factors

What it is: The capacity excess or excess capacity (e Xcess capacity) is a situation where the production capacity is not fully utilized to achieve the minimum efficient scale. In other words, the firm is producing at a lower scale of output than it was designed for. Not only companies, this term can also be associated with industry and the… Read More »