Archives: Terms

Definition of Tradable Emission Permit Tradable emission permits, also known as emissions trading or cap-and-trade systems, are part of market-based approaches used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. These systems set a cap on the total level of greenhouse gases that […]

Definition of Total Revenue Total revenue (TR) is the total amount of money a firm receives from the sale of its goods or services. It is an essential concept in economics and business management as it provides a measure of the financial inflow a company experiences before subtracting any costs. […]

Definition of Total Final Expenditure Total Final Expenditure (TFE) refers to the total spending on all final goods and services produced within a country during a specific period. It is a measure used in national accounts to calculate the Gross Domestic Product (GDP) using the expenditure approach. The TFE includes […]

Definition of Total Domestic Expenditure Total Domestic Expenditure (TDE) refers to the total amount of spending on goods and services within a country. It encompasses all consumption, investment, and government expenditures made by residents of that country, but excludes net exports (exports minus imports). TDE is a critical measure in […]

Definition of Tokyo Round The Tokyo Round refers to the multilateral trade negotiations that took place under the General Agreement on Tariffs and Trade (GATT) framework from 1973 to 1979. This round of negotiations aimed to reduce tariffs and address certain non-tariff barriers to international trade, ultimately enhancing the global […]

Definition of Token Money Token money refers to money that has little or no intrinsic value but is accepted as a medium of exchange because of government decree or societal convention. Unlike commodity money, which has intrinsic value due to the material it is made from (such as gold or […]

Definition of Todaro Model The Todaro Model is an economic model developed by Michael Todaro that explains internal migration patterns, particularly rural-to-urban migration in developing countries. The model highlights the decision-making process of individuals considering migration by comparing expected incomes rather than actual incomes between rural and urban areas. It […]

Definition of Tobit Model The Tobit model, named after economist James Tobin, is a type of regression model that is used to describe the relationship between a non-negative dependent variable and one or more independent variables. This model is specifically designed to handle situations where the dependent variable is censored […]

Definition of Tobin’s q Tobin’s q is a ratio that compares the market value of a firm’s assets to the replacement cost of those assets. Named after James Tobin, a Nobel laureate in economics, the ratio is used to gauge whether a company’s market value reflects the actual cost to […]

Definition of Tit for Tat Tit for tat is a strategy often encountered in game theory and international relations, characterized by reciprocity in which a participant in a situation replicates the actions of another participant. This strategy is typically used in repeated games where the players interact multiple times. If […]