Archives: Terms

Definition of Marginal Cost Marginal cost is defined as the additional cost incurred by producing one more unit of a good or service. In economic theory, it is a critical concept used to analyze and understand various aspects of production and cost management. The marginal cost includes the costs of […]

Definition of True and Fair View The principle of “True and Fair View” is a fundamental concept in financial reporting and accounting. It mandates that financial statements must accurately reflect the reality of a company’s financial position, performance, and cash flows, free from material misstatements and bias. This principle is […]

Definition of Triple-A Rating A Triple-A (AAA) rating is the highest possible rating that can be assigned to the bonds or other financial instruments of an issuer by credit rating agencies such as Standard & Poor’s, Moody’s, or Fitch. This rating signifies an exceptionally strong capacity to meet financial commitments […]

Definition of Trillion A trillion is a numerical value represented by 1 followed by 12 zeros in the short scale system, which is used primarily in English-speaking countries. In numerical form, a trillion is written as 1,000,000,000,000. This colossal number surpasses a billion (which has nine zeros) by three orders […]

Definition of Trigger Strategy Trigger strategy is a concept in game theory, particularly in the context of repeated games. It refers to a strategy that specifies a certain “trigger” event, typically a deviation from a cooperative or agreed-upon course of action by another player, which prompts a response. Once this […]

Definition of Triangle of Loss The “Triangle of Loss” typically refers to the geometric representation of deadweight loss in economic diagrams, specifically those depicting supply and demand. When market inefficiencies or distortions like taxes, price floors, or ceilings are introduced, they create a loss of total surplus in the market, […]

Definition of Treuhandanstalt The Treuhandanstalt, commonly referred to as “Treuhand,” was a government agency established in East Germany (GDR) after the fall of the Berlin Wall in 1990. Its primary role was to manage the privatization of state-owned enterprises in the former East Germany during the German reunification process. The […]

Definition of Trend A trend in economics refers to the general direction in which something is developing or changing over time. Trends can be observed in various aspects such as market prices, consumer behavior, stock prices, and economic indicators. They help analysts and policymakers understand the performance and direction of […]

Definition of Treaty of Rome The Treaty of Rome, officially known as the Treaty establishing the European Economic Community (EEC) and the Treaty establishing the European Atomic Energy Community (EURATOM), is a foundational international agreement that was signed on 25 March 1957 by Belgium, France, Italy, Luxembourg, the Netherlands, and […]

Definition of Treasury Bill A Treasury bill, often abbreviated as T-bill, is a short-term government debt security with a maturity of one year or less. It is issued by the U.S. Department of the Treasury to help finance the operations of the federal government. Treasury bills are sold at a […]