Definitions Substitutes Economics Substitutes or substitute goods refer to the products that are used as alternatives to each other.
Definitions Price Taker A market participant who has no influence or impact on the market price of a product is called a price taker.
Definitions Disinflation Definition Disinflation is a type of inflation in which the rate of inflation decreases over time.
Definitions Network Effects: A Detailed Guide A network effect refers to an increase in the importance or value of a product or service with an increase in the number of its users.
Global economics Economic Ripple of Spanish Gold Spanish gold refers to the huge quantity of gold and silver acquired by the Spanish conquerors from the Incas during the sixteenth century.
Definitions Real vs. Nominal in Economics Real values refer to the values calculated by using base-year prices, while nominal values are calculated by using current-year prices.
Business economics Penetration Pricing Penetration pricing means setting the price of a new product or service initially very low and then gradually increasing it over time.
Definitions Economic Efficiency Economic efficiency refers to a situation where scarce resources are used in the best possible way.
Definitions Seigniorage Explained Seigniorage refers to the difference between the face value of the currency and its production cost.
Definitions Atomistic Competition A type of market structure in which many small firms compete independently with each other in a marketplace is called atomistic competition.
Definitions Adverse Selection in Insurance Adverse selection refers to the tendency of people or firms to select unsuitable products or customers due to asymmetric information.
Crypto Trading Automation Penetrates the Cryptocurrency Sector Automated cryptocurrency trading systems are based on algorithms and bots developed by third parties and available for purchase or subscription.
Definitions The Economics of Microtransactions A microtransaction is a small payment made to buy virtual in-game or in-app items like upgrades, coins, or cosmetic enhancements.
Behavioural economics Frictional Unemployment Frictional unemployment refers to the unemployment that occurs as a result of the normal functioning of the labour market.
Definitions Disadvantages of Socialism An economic system in which every person in a community has an equal share of the various components of resources is called socialism.
Definitions Natural Unemployment Formula The minimum unemployment that occurs in a well-functioning economy if there were no cyclical unemployment is called the natural unemployment.
Definitions Types of Goods in Economics In economics, goods are the items produced by firms by using factors of production in order to satisfy the needs and wants of customers.
Definitions Pros and Cons of Universal Basic Income (UBI) An unconditional cash payment that is given at regular intervals by the government to all residents in a country is called UBI.
Definitions Product Life Cycle (PLC) A product life cycle (PLC) is a relationship between the sales of a product and time, normally represented as a graph.
Definitions Central Planning Central planning means the total body of government actions to organise, regulate, and coordinate directions of national economic development.
Definitions Dependency Ratio Definition The proportion of the population of dependents in comparison with the population of the working age is called the dependency ratio.
Definitions Primary Sector Economics The primary sector of an economy is the collection of business firms that are involved in the extraction of natural resources.
Definitions Backward Bending Supply Curve For an individual worker, the supply of labour is the number of hours for which the worker is willing and able to work in a given time period.
Definitions Capital Accumulation The process of obtaining additional capital stock that is used in the production of goods or services is called capital accumulation.
Definitions Automatic Stabilisers Automatic stabilisers are the taxes and government spending that change automatically to offset the fluctuations in a country’s real GDP.
