Archives: Terms

Definition of Benelux The Benelux Union, commonly referred to as Benelux, is a politico-economic union comprising three neighboring countries in western Europe: Belgium, the Netherlands, and Luxembourg. The name is formed from the beginning of each country’s name. The union was established to encourage cooperation and economic integration among these […]

Definition of Benefits System A benefits system refers to the structured offering of non-wage compensations provided by employers to employees, beyond the regular salaries or wages. These benefits can include health insurance, retirement plans, paid vacation, stock options, and other perks designed to enhance employee satisfaction, welfare, and loyalty. In […]

Definition of Benefits in Kind Benefits in Kind (BIK) are non-cash benefits provided to employees in addition to their normal salary. These are goods or services that employees receive from their employer that aren’t included in their salary but have a monetary value. These benefits can range from company cars, […]

Definition of the Benefit Principle The benefit principle of taxation is a concept suggesting that the taxes individuals or businesses pay should be directly proportional to the benefits they receive from the public goods and services funded by those taxes. According to this principle, individuals who benefit more from government […]

Definition of Below-the-Line Advertising Below-the-line advertising refers to promotional activities that target specific audiences with more direct and interactive methods, as opposed to mass media campaigns seen in traditional above-the-line strategies. This form of advertising is highly focused and often involves direct mail, sponsorships, catalogs, and digital marketing campaigns that […]

Definition of Behavioral Theories of the Firm Behavioral theories of the firm propose an alternative to traditional economic theory by focusing on how real-world firms actually operate, rather than how they should operate in theory. These theories suggest that firms pursue multiple objectives as a result of the complex motivations […]

Definition of Behavioural Economics Behavioural economics examines how psychological, social, cognitive, and emotional factors influence the economic decisions of individuals and institutions and the consequences these decisions have on market prices, returns, and the allocation of resources. It challenges the classical economic assumption of rational and well-informed agents, offering a […]

Definition of Beggar-My-Neighbour Policy A Beggar-My-Neighbour policy refers to an economic policy or action taken by a country to address its own economic problems at the expense of other countries. It is a strategy that involves improving one’s own economic conditions through means that are likely to worsen the economic […]

Definition of Before-Tax Income Before-tax income refers to the amount of money an individual or corporation earns before any taxes are deducted. It is also known as gross income. Before-tax income includes all sources of income, such as wages, salaries, bonuses, capital gains, interest income, and other earnings before any […]

Definition of Bayesian Inference Bayesian inference is a method of statistical inference in which Bayes’ theorem is used to update the probability for a hypothesis as more evidence or information becomes available. Bayesian inference has applications in a broad range of fields, from machine learning and artificial intelligence to medical […]