Understanding about the Hemline theory on Short skirts

 Understanding the Economy

A Economy is the complex system in which arrangements for production, consumption and exchange activities are made and limited resources are allocated in proportional manner to fulfill the above mentioned process of production and consumption is carried out in a systematic way. Activities concerning the production, maintenance and distribution of goods and services are carried out in such a manner that the demands of those living within the domestic boundary and some demands of people living outside the geographical boundaries are satisfied in the form of exports. Economy can be measured at many level ie, a nation’s economy, a regions economy or Even a single industry or company’s economy can be measured. Use Economics assignment help portals to get a more detailed definition of economy.

Broadly following connotations can be made about an Economy-:

● Organized system where financial activities of production and consumption take place.

● Economy of a place or country displays the status of all the economic activity being carried out here. assignment help uk can be used to know better about characteristics of the economy.

● Economy of a country and its size can display the standard of living of the people and growth they achieve financially.

Economy is also of different types depending on the method of operations and control exercised by an entity. The three main categories of economy are -

● Free Market economy- it is the one where all the activities are governed as per the Market activities and resources are allocated accordingly.

● Government Controlled Economy or Regulated economy is the one where allocation of resources takes place as per the government regulated policies.

● Mixed economies are the ones which possess the characteristics of both the controlled and free market economy as per the main objective of that particular activity. Most of the economies today are mixed economies. I use Civil engineering assignment help to get better at holding types of economies and how they function.

Hemline theory: short skirts

Before we start with the basics of hemline theory let us quickly understand what relation a stock market of the country has with its economy -:

● Mostly stock/share market move in tandem ie. They are directly related.

● Although there might appear some deviation between the two of them, when the stock market is influenced by some abnormal factors.

In Stock market there are basically two types of dealers, these two dealers are-

● Bulls, these are the dealers who always carry out activities to keep the prices of stocks high, because their profit is derived from pushing stocks as high as possible.

● Bears are the dealers who always carry out activities to pull down the prices of stocks in the market, their share of profit depends upon how low the market moves. Use economics homework help like www.greatassignmenthelper.com to get a better understanding of bears and bulls.

In hemline theory, it was propounded that the price of stocks in the market moved in the same direction as that of the hemline of women’s skirts. Short skirts here means that the market is bullish while long skirts indicate a bearish market. In short skirt period it is believed to be a very good time for the Economy, which means that having more bullish influence ie. stock prices going up indicates good economic times. During these times there are high activities of production taking place in the economy which are reflected on the prices of stock in the market.