Archives: Terms

Definition of American Economic Association (AEA) The American Economic Association (AEA) is a prestigious organization aimed at advancing knowledge in economics. It provides a platform for economic research, encourages perfecting economic theory and its application, and facilitates communication and exchange among those interested in economics. Membership is open to anyone […]

Definition of Amalgamation Amalgamation refers to the process where two or more companies merge to form a new entity or one company absorbs the other(s), resulting in the consolidation of assets, liabilities, and other financial and operational capacities. Amalgamation is often pursued to achieve synergies, expand market presence, increase operational […]

Definition of Altruism Altruism refers to selfless concern for the well-being of others without expecting any reward or benefit in return. It is a behavior and moral philosophy that involves acting out of concern for the other’s interests, sometimes at a cost to oneself. Altruism can manifest in numerous ways, […]

Definition of Alpha Stocks Alpha stocks refer to investments that have the potential to outperform the market or their relevant benchmark index. The term ‘alpha’ itself denotes a measure of performance on a risk-adjusted basis, making alpha stocks those that provide a higher return than expected given their risk level. […]

Definition of Almon Distributed Lag The Almon distributed lag model is an econometric technique used to measure the effect of a variable over time. It specifically addresses the challenge of lag effects, where the impact of a change in one variable on another takes place across several time periods, rather […]

Definition of Aid to Families with Dependent Children (AFDC) Aid to Families with Dependent Children (AFDC) was a federal assistance program in effect from 1935 to 1996, created as part of the Social Security Act. The program provided financial assistance to children in families without adequate income and to their […]

Definition of Agricultural Protection Agricultural protection refers to policies and measures taken by a government to shield its domestic agricultural sector from foreign competition. These measures can include tariffs, subsidies, import quotas, and regulatory standards that are designed to control the volume and price of imported agricultural goods. The primary […]

Definition of Aggregate Production Function An aggregate production function is an economic model that represents the relationship between the total output of a nation and the amounts of various inputs used to produce that output. It is a theoretical concept that describes how, in the economy as a whole, total […]

Definition of Aggregate Demand Schedule An aggregate demand schedule is a table that shows the quantity of goods and services that all consumers, businesses, government, and foreign buyers will purchase at each price level. Essentially, it lists various price levels and the corresponding total amounts of goods and services demanded […]

Definition of Agglomeration Economies Agglomeration economies refer to the benefits that firms and individuals obtain when they come together in dense geographic concentrations, typically seen in cities or industrial clusters. These benefits arise from the proximity of companies and professionals, leading to reduced transportation and transaction costs, greater opportunities for […]