Economy: How you do business

  • Economy: How you do business

    The term economy encompasses all institutions especially companies and activities especially gainful employment that provide goods and services like bitcoin mixing services in order to satisfy needs. Doing business means making decisions about scarce resources. In a state, the economy is determined by the respective economic system, economic policy and the associated economic legislation as well as available resources. People play a decisive role in the economic process. He is not only a consumer but also a decision-maker. As an employee, he is involved in the production processes in many ways.

    Who is in a household?

    A household can include people who live together and work together but also a single person who lives and works together. The households consume goods. Most households obtain the financial means for this through gainful employment, that is, they make their labor available to the companies for remuneration.

    Every household and its members have specific needs that have to be met. In the first place are the so-called primary needs or basic needs, e.g. food and housing, followed by secondary needs, e.g. education. There are also luxury needs, e.g. jewelry.

    Why do you have to do business?

    Because the goods required are almost always scarce compared to the demand. Decisions, therefore, need to be made about what goods will be produced, how they will be distributed and used. Such decisions often have far-reaching consequences: as more food is produced, there is less land on which to build houses. It is therefore possible that the needs of all people in a society for an apartment can no longer be met.

    What is the difference between wages and salaries?

    The wage is the income of workers, the salary of employees and civil servants. In general, income is the growth in the wealth of a household over a certain period of time. This includes the growth in goods, services, claims and of course in money. A considerable part of this is usually spent on consumption – i.e. for the purchase of goods and services. If there is still money left, it will be saved.

    By the way: Income is also divided into gross and net income. The gross income is the income including social security contributions and taxes, the net income is the income minus the social security contributions and taxes to be paid directly from it.

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