Archives: Terms

Definition of Transitional Economy A transitional economy is an economy that is shifting from a centrally planned economy to a free-market system. During this transition, the economy undergoes extensive restructuring, which includes changes in ownership structures, regulatory environments, and institutional reforms. This shift typically involves the privatization of state-owned enterprises, […]

Definition of Transformation Curve The transformation curve, also known as the production possibility frontier (PPF), is a graph that depicts the maximum achievable outputs of two goods that an economy can produce with existing resources and technology, assuming the resources are fully and efficiently utilized. The curve demonstrates the trade-offs […]

Definition of Transformation Economic transformation refers to significant changes in the structure and composition of an economy over time. It typically involves a shift from an agrarian-based economy to one focused on industrial and service sectors. This means there’s a profound shift in the way economic activities are organized and […]

Definition of Transfers in Kind Transfers in kind refer to non-cash benefits provided by the government to individuals or households to help meet their basic needs. Unlike cash transfers, these benefits are given in the form of goods and services, such as food, healthcare, education, or housing assistance. The primary […]

Definition of Transfer Payments Transfer payments are forms of government financial assistance given to individuals without any exchange of goods or services being required in return. These payments are crafted to aid in redistributing income and wealth, providing support to individuals who are in financial need. Transfer payments are critical […]

Definition of Transfer Earnings Transfer earnings refer to the minimum payment required to keep a factor of production in its current use. In simpler terms, it is the earnings that a factor (such as labor, land, or capital) could receive in its next best alternative use. This concept is crucial […]

Definition of Transaction Motive The transaction motive refers to the primary reason individuals and businesses hold cash or liquid assets: to facilitate everyday transactions. This necessity for liquidity arises from the regular and predictable need to make payments for goods, services, and obligations. It is a fundamental concept in Keynesian […]

Definition of Transaction Cost Economics Transaction Cost Economics (TCE) is a theory that explores the cost of making an economic exchange or transaction. This economic theory focuses on the costs incurred in making an economic exchange, including costs of searching for information, negotiating and enforcing contracts, and managing and monitoring […]

Definition of Training Training refers to the process of enhancing the skills, capabilities, and knowledge of employees for doing a particular job. It aims at improving their performance and productivity by educating them about new methodologies, updated technologies, and delivering job-specific knowledge. Often, training is a structured program within an […]

Definition of Trading Currency Trading currency, also known as forex trading or currency trading, involves buying and selling currencies on the foreign exchange market with the aim of making profits. It is the world’s largest and most liquid market, where traders speculate on currency price movements by entering into currency […]