Category Archives: Economics Interview Questions

Is there a rule of thumb for office rent or lease per gross income? | Economics Questions

There is a GRM (Gross Rent Multiplier) that compares the total rental/lease income to the value or price of the property. The price can run 8 to 10 times the gross income, but that can vary based on market conditions, … Continue reading

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Is there a difference between corporate profit maximization and maximization of shareholder wealth? | Economics Questions

Sure, profit maximization relates to profits *only* while shareholder wealth also involves total company equity, debt ratios and any of 1 5 other financial performance measure ratios. Management could focus on profit maximization over a longer period of time, say, … Continue reading

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What caused the Great Depression? | Economics Questions

The business boom of the l920s made people overly confident therefore, they invested their money in risky stocks and deals. In addition, banks made careless loans and soon failed when people could not pay them back. Third, businesses produced more … Continue reading

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How tourism is an upcoming industry? | Economics Questions

Tourism is an upcoming industry because it is generating high level of income, nowadays it is third number of high income generating industry.

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What are the effects of globalization on Indian industry? | Economics Questions

Indian industry has progressed a lot due to globalization. A lot of improvement has been seen in Indian industry.

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What is the importance of strategic management towards the success of a business? | Economics Questions

Strategic management used to play a different after the Second World War. Strategic plans of the past usually range 3 to 5 years. Some companies could even have plans for 10 good years. That is not possible today given rapid … Continue reading

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What still matters in strategic management lies in the value of planning? | Economics Questions

There is an old saying that if you fail to plan, you are planning to fail. By acting on this, strategic management actually gives the organization direction, a sense of identity and unity towards what the business goal. Therein lays … Continue reading

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What are the various uses for break-even analysis? | Economics Questions

Such analysis allows the firm to determine at what level of operations it will break even (earn zero profit) and to explore the relationship between volume, costs, and profits. It helps the management that at current costs of products how … Continue reading

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What can you do about tourists use of natural resources? | Economics Questions

Countries have to legislate so that new tourist developments satisfy environmental safeguards. All development must be sustainable: There must be no pollution into waterways and oceans. Garbage and sewage must be collected and recycled as much as possible. Tourist movements … Continue reading

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Why was Vietnam divided into two countries? | Economics Questions

The north was communist, the south was capitalist, which was determined by their supporter states, the USSR and the US after independence in 1954, and however, this division was only meant to be temporary, with elections to re-unify the country.

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