ⓘ Free online encyclopedia. Did you know? page 89




                                               

Capital (economics)

Capital has a number of related meanings in economics, finance and accounting. In finance and accounting, capital generally refers to financial wealth, especially that used to start or maintain a business. In classical economics, capital is one o ...

                                               

Capital accumulation

Capital accumulation means the gathering of objects of value; the increase in wealth; or the creation of wealth. In this context capital can be understood as assets used for profit. In economics capital accumulation is often seen as the same as i ...

                                               

Capital asset pricing model

The capital asset pricing model is a model of stock returns. It makes a key assumption, which is that investors care only about two things: the mean returns of stocks over, for example, ten years, and the volatility of annual returns around that ...

                                               

Comparative advantage

Comparative advantage is a term economists use, especially in international trade. A country has a comparative advantage when it can make goods or services at a lower opportunity cost than another country.

                                               

Competition (economics)

In economics, the word competition means that there are at least two competitors who want to get a share of a market. The market is divided between all the economic players; this means that if a player gets a higher market share, another player w ...

                                               

Consortium

A consortium is formed by two or more independent companies, individuals, or other economic actors that work together for a limited amount of time, usually to fulfill a purpose. Consortia are common in the building industries, roads and bridges a ...

                                               

Constitutional economics

Constitutional economics is a program of joint study of economics and constitutionalism. It is often described as "the economic analysis of constitutional law." Constitutional economics tries to explain the selection of constitutional rules "limi ...

                                               

Consumer spending

Consumer spending, consumption, or consumption expenditure is when people buy goods and services. It is the biggest part of aggregate demand in macroeconomics. There are two parts of consumer spending: induced consumption and autonomous consumption.

                                               

Debt consolidation

Debt consolidation involves taking out a loan to pay off multiple loans. This is usually done to secure a lower interest rate and for the convenience of paying only one loan. Debt consolidation usually entails taking a secured loan against an ass ...

                                               

Depression (economics)

A depression is a long period of time in which the economy of a country is not working well. It is usually marked by a large number of people being without jobs. A depression is a more severe kind of recession. A depression can last for several y ...

                                               

Development economics

Different countries have econmies that are in different states of development. Development economics is a branch of economics that looks at ways on how to improve economic development. Very often, it is used in developing countries. In these cont ...

                                               

Diderot effect

The Diderot effect is a phenomenon from sociology, which was named after Denis Diderot, who first described it in an essay. In the essay, Diderot talked about a robe he used to wear in the bathroom: The old robe was a little shabby, but useful. W ...

                                               

Disposable and discretionary income

Disposable income is the income someone has after they have paid their taxes. Mathematically, it is total personal income minus personal current taxes. In national accounts definitions, personal income minus personal current taxes equals disposab ...

                                               

Disruptive innovation

Disruptive innovation, sometimes called disruptive technology is the name for a technology or innovation that changes the market: It creates a new market. These new markets are small at first, which makes them uninteresting for established market ...

                                               

Econometrics

Econometrics is a branch of economics. It is the use of statistical and mathematical methods to describe the relation between economic forces such as capital, interest rates, and labor. Much of econometrics is making models which are simple pictu ...

                                               

Economic boom

Economic boom is a phase when the economy has a huge increase. It is a natural cycle. The United States of America had an essential supply of natural resources such as timber, iron, coal, minerals, oil and land. Immigrants provided a plentiful an ...

                                               

Economic index

An economic index is a number that is calculated from different economic factors, like prices or income. These numbers are calculated to be able to compare different economies in different countries. An example for such an index would be the Gros ...

                                               

Economic sector

One method is by the three-sector hypothesis: Primary sector extracts natural materials and provides raw materials for secondary industry. s.Sd transmission of

                                               

Ecosystem valuation

Ecosystem valuation is a widely used tool to find out the impact of human activities on an environmental system. It is done by giving an economic value to an ecosystem or its ecosystem services.

                                               

Elasticity of substitution

Elasticity of substitution is a measure of how easily something is able to be substituted with something else. It is often used in marketing and economics. A product has a low elasticity if it is unable to raise its price because similar products ...

                                               

Expenditure

In economics an expenditure is when a company buys fixed assets that will create a benefit in the future, or when the company upgrades existing assets so that they can be used for a longer time. This constitutes an investment, as the benefits of ...

                                               

Externality

In economics, some decisions affect third parties. These parties can be affected by the decision positively or negatively, but this influence is involuntary. This is known as an externality, or an external effect. The problem with externalities i ...

                                               

First World

First World is a term used in politics and economics to refer to the richer and more developed nations. In these countries, the majority of the people are in the middle class and enjoy a good standard of living. This term is being used less, as t ...

                                               

Flipping

Flipping is a term used in economics. It is used mainly in the United States to describe buying something and quickly reselling it for profit. It can apply to any asset but is often applied to real estate and initial public offerings.

                                               

Floating exchange rate

A floating exchange rate is when the exchange rate between two currencies can change freely. It is also known as flexible exchange rate, or fluctuating exchange rate. Supply and demand will influence the exchange rate. Today, floating exchange ra ...

                                               

Frugality

Frugality is a quality of spending money very carefully and in limited amounts. This decision can be made for various reasons. Some are: to save money, make costs smaller and get the most possible value from purchases.

                                               

Gainsharing

Gainsharing is a system of management used by a business to increase profitability by motivating employees to improve their performance through involvement and participation. As their performance improves, employees share financially in the gain. ...

                                               

Geographical indication

A geographical indication associates a product with a certain geographical area. The buyer of the product will then know that the product is from the area indicated. These indications are most common for agricultural products, mostly food. They c ...

                                               

Grey market

A grey market is a market where goods are sold legally, but outside the commonly-used channels and at lower prices. They are sold without the permission of the manufacturer. Consumers buying grey market goods risk not having warranties honored. T ...

                                               

Holding company

A Holding company is a company, which has the purpose of owning stock of other companies. In most cases, such companies do not sell products or services, they manage the companies they own. Probably one of the best known holding companies was the ...

                                               

Housemaid debate

The housemaid debate or maid debate is a political discussion in Sweden. It begun on 18 July 1993 when Swedish economist Anne-Marie Pålsson proposed tax deductions for household services. Many right-wing politicians supported the proposal. They t ...

                                               

Human development theory

Even though economics is all about choice on the basis of what is available rather than what should be available, the big question relates to who decides how resources should be distributed and how economics can embrace a trade-off between differ ...

                                               

Hydrogen economy

A hydrogen economy is a hypothetical future economy in which the primary energy used for automobiles and other vehicles as well as creating electricity comes from hydrogen and renewable energy sources, like windmills and solar panel.

                                               

Induced consumption

Induced consumption is the part of consumption that changes with disposable income. It is when there is a change in disposable income" induces” a change in consumption on goods and services. In contrast, spending for autonomous consumption do not ...

                                               

Insolvency

Insolvency means that a person or organisation does not have enough money to pay all of the people who they owe money. Different countries have different definitions of exactly what insolvency means, but usually it means either that: a person can ...

                                               

Intensity of preference

Intensity of preference, also known as intensity preference, is a term used to identify and describe what happens in a process which leads to consensus agreement or consensus ranking. The phrase recognizes that decisions and decision-making invol ...

                                               

Interest

Interest is the cost for borrowing money or the payment for lending money. Usually, this is fixed as a percentage of the amount of money borrowed.

                                               

International Monetary Fund

The International Monetary Fund is an international organization. 189 countries are members of the International Monetary Fund. It has its headquarters in Washington, D.C., USA.

                                               

International trade

International trade is when countries agree to allow their businesses to exchange products or resources, also known as importing and exporting goods. Businesses in one country will then buy or sell goods to the businesses in other countries. Alte ...

                                               

Jevons paradox

In economics, Jevons paradox is a paradox about resource usage. It is also called Jevons effect, after William Stanley Jevons who first observed it in 1865. Jevons observed that the steam engine James Watt had developed was much more efficient th ...

                                               

Loss aversion

Loss aversion is a concept in psychology. It is to prefer avoiding losses to acquiring equivalent gains. The principle is prominent in economics. The principle of loss aversion was first proposed by Daniel Kahneman and Amos Tversky in 1979. Loss ...

                                               

Marginal propensity to consume

In economics, the marginal propensity to consume is a measurement that can put induced consumption into numbers. Induced consumption is the idea that an increase in personal consumer spending happens with an increase in disposable income. The pro ...

                                               

Market economy

A market economy is economy in which the prices of the products and services are chosen in a free price system that is decided by supply and demand. It began around the late 18th century, after the Industrial Revolution. A key work was Adam Smith ...

                                               

Mass production

If an item is produced in large quantities, this is usually called mass production. The item produced is called product, and it is usually made in a factory. The items produced will all be the same type. The process of making large quantities wil ...

                                               

Middle income trap

In economics the middle income trap happens when a countrys GDP is stuck at some level and cannot increase. The World Bank says that South Africa and Brazil have fell into the trap. Economists think this happens because as a country sells more an ...

                                               

Monetary authority

In finance and economics, a monetary authority is the organization which controls the money supply of a currency. Their goal is to control inflation, interest rates, real GDP or the unemployment rate. With its monetary tools, a monetary authority ...

                                               

Money supply

The money supply is the total value of money available in an economy at a point of time. There are many ways to define "money". Normal measures usually include currency in circulation and demand deposits. Each country’s central bank may use its o ...

                                               

Natural capital

Natural capital is a metaphor for the mineral, plant, and animal formations of the Earths biosphere when viewed as a means of production of oxygen, water filter, erosion preventer, or provider of other ecosystem services. In a traditional economi ...

                                               

Natures services

Natures services is a term for the ways in which nature benefits humans. It means particularly those benefits that can be measured in economic terms. Robert Costanza and other theorists of natural capital analysed natures services to humanity in ...

                                               

Nonprofit organization

A nonprofit organization, or non-business entity, is an organization which does not give its surplus income to owners or shareholders. It uses its revenue and/or capital to achieve its purpose or mission. The decision to adopt a non profit legal ...