Archives: Terms

Definition of Demand Function A demand function is a mathematical equation that describes the relationship between the quantity of a good that consumers are willing and able to purchase and various factors that influence this demand. The most common version of a demand function relates quantity demanded (Qd) to the […]

Definition of Demand for Money The demand for money in economics refers to the total amount of wealth individuals and businesses choose to hold in the form of money (cash or deposits) as opposed to other forms of assets like stocks, bonds, or real estate. The demand for money is […]

Definition of the Delors Report The Delors Report, named after Jacques Delors, who chaired the Commission on Education for the twenty-first century by UNESCO, is a significant document published in 1996. It emphasizes the importance of education as a continuous process that extends throughout an individual’s life. The report advocates […]

Definition of Deindustrialization Deindustrialization refers to the process in which the industrial sector of a nation’s economy shrinks, often resulting in a relative increase in the service sector’s significance. This phenomenon is characterized by a reduced percentage of national output and employment accounted for by industrial activities. Deindustrialization can occur […]

Definition of Deflationary Gap A deflationary gap, also known as a recessionary gap, occurs when an economy’s actual output is less than its potential output at full employment. This gap represents the difference between what an economy is actually producing (Actual GDP) and what it could produce if it were […]

Definition of Defined Contribution Plan A Defined Contribution Plan is a type of retirement plan where an employer, employee, or both make contributions on a regular basis, but the future benefits are not predefined. Instead, the benefits depend on the investment’s performance. This contrasts with a Defined Benefit Plan, where […]

Definition of Defined Benefit A defined benefit plan is a type of pension plan where an employer promises a specified pension payment upon retirement, which is predetermined by a formula based on the employee’s earnings history, tenure of service, and age, rather than depending directly on individual investment returns. Commonly […]

Definition of Deficit A deficit occurs when an entity (often a government) spends more money over a specific period than it receives in revenue. It is the opposite of a surplus, where revenues exceed expenditures. Deficits are a common economic measure used to gauge the financial health of a government’s […]

Definition of Deficiency Payment A deficiency payment is a financial subsidy paid by governments to farmers and producers when the market price of a commodity falls below a certain predetermined target price. This target price is usually set by government policy as part of agricultural support programs. The purpose of […]

Definition of Deferred Share A deferred share is a type of equity security that does not provide immediate rights to dividends or voting in shareholder meetings upon issuance. Instead, these rights are deferred to a later specified date or until certain conditions are met. Typically, deferred shares are used by […]