Archives: Terms

For the requested topic of “wage slavery,” please see the detailed glossary entry below. ### Definition of Wage Slavery Definition of Wage Slavery Wage slavery is a term used to describe a situation where a person’s livelihood depends entirely on wages or a salary, especially when the dependence is total […]

Definition of Wage Labour Wage labour refers to the socioeconomic relationship between a worker and an employer in which the worker sells their labour under a formal or informal contract and is paid a predetermined wage or salary. This type of labour is characteristic of industrialized economies and is a […]

Definition of the Von Neumann–Morgenstern Utility Theorem The Von Neumann–Morgenstern utility theorem is a foundational concept in the field of expected utility theory, which underpins much of modern economics and decision theory. It establishes that under certain axioms of rational behavior, an individual’s preferences over uncertain prospects (or “lotteries”) can […]

Definition of the Virginia School The Virginia School, also known as the Virginia School of Political Economy, is a theoretical framework and approach to economic thought that originated at the University of Virginia in the 1950s and 1960s. It emphasizes the role of political decision-making processes in economic outcomes and […]

Definition of Verdoorn’s Law Verdoorn’s Law posits a positive feedback loop between productivity growth and output growth, especially in the context of the manufacturing sector. It suggests that a higher output growth rate tends to lead to higher productivity growth rates due to economies of scale, learning by doing, and […]

Definition of Variable Costs Variable costs are expenses that change in proportion to the activity or production level of a business. Unlike fixed costs, which remain constant regardless of output, variable costs fluctuate with the volume of production. Common examples of variable costs include raw materials, labor costs directly associated […]

Definition of Value-Added Tax (VAT) Value-Added Tax, commonly known as VAT, is a type of consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The amount of VAT that the user pays is on the […]

Definition of Value Value, in the context of economics, refers to the importance, worth, or usefulness of something. It is a fundamental concept that determines how resources are allocated in the market. Economically, value is often associated with the price that consumers are willing to pay for a good or […]

Definition of Uzawa’s Theorem Uzawa’s Theorem, named after the Japanese economist Hirofumi Uzawa, is a pivotal concept in economic growth theory, specifically within the scope of neoclassical growth models. This theorem delineates conditions under which an economy’s growth path can be optimized, focusing on the relationship between accumulation of physical […]

Introduction to the Uzawa–Lucas Model The Uzawa–Lucas model, named after Hirofumi Uzawa and Robert Lucas, Jr., is an influential theoretical framework in the field of economics that highlights the role of human capital accumulation in economic growth. This model diverges from traditional growth theories by emphasizing that an economy’s growth […]