Archives: Terms

Definition of Arrow-Debreu Economy An Arrow-Debreu economy is a model of an economy that describes how equilibrium prices allow for efficient allocation of resources within a perfectly competitive market. Named after economists Kenneth Arrow and Gérard Debreu, this model incorporates a complete set of markets for goods and services, as […]

Definition of Arm’s-Length Price An arm’s-length price refers to a price that is agreed upon by buyers and sellers acting independently in the marketplace, where neither party is under any pressure or compulsion to execute the transaction. It essentially implies that the parties involved have equal bargaining power and are […]

Definition of Arbitrageur An arbitrageur is an investor who attempts to profit from price inefficiencies in different markets by simultaneously buying and selling identical or similar financial instruments. By capitalizing on discrepancies in prices across various markets, arbitrageurs help ensure that prices do not diverge significantly for long periods of […]

Definition of Arbitrage Pricing Theory Arbitrage Pricing Theory (APT) is an economic model that describes how assets are priced given the assumption that the price of any financial asset can be modeled by a linear function of various macroeconomic factors or theoretical market indices, minus an arbitrage opportunity. This theory, […]

Definition of Appropriation Bill An appropriation bill is a legislative motion (bill) that authorizes the government to spend money. It is one of the primary tools through which government budgets are passed in many countries around the world. Specifically, this type of bill details how government funds should be used […]

Definition of Appropriation Account An appropriation account is a financial statement that shows how a company’s profit is allocated for various purposes. This account is usually presented at the end of a company’s financial year and is part of the final accounts, following the profit and loss account. The main […]

Definition of Apprenticeship An apprenticeship is a system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study (classroom work and reading). Apprenticeships can also enable practitioners to gain a license to practice in a regulated profession. Most of their […]

Definition of Applied Microeconomics Applied microeconomics is a branch of economics that focuses on understanding and analyzing the behavior of individuals and firms in making decisions regarding the allocation of scarce resources. It applies microeconomic theories and principles to real-world situations, addressing issues within various specific sectors such as health […]

Definition of Anticipated Inflation Anticipated inflation refers to the rate of inflation that is expected to occur in the future and is commonly predicted by economists, businesses, and consumers based on current economic trends and policies. This expectation is significant because it influences decision-making processes across the economy, including wages, […]

Understanding Anti-Pollution Measures Anti-pollution measures are efforts or policies implemented to reduce or eliminate the release of pollutants into the environment. These measures are crucial for protecting air, water, and soil quality, thus ensuring a healthier ecosystem and human population. Governments, corporations, and individuals can take various steps to combat […]