Archives: Terms

Definition of Turnpike Theory Turnpike theory is an economic concept that concerns the optimal path of investment to achieve the most efficient long-term growth. The theory suggests that, for an economy to reach a predetermined state of growth or development in the least amount of time, investments should be concentrated […]

I’m here to provide valuable insights into economics topics. However, the “turnpike model of money” seems to be a blend of terminology that doesn’t directly relate to a known economic theory or model in the conventional sense. The confusion may arise from the amalgamation of two distinct concepts: the “turnpike […]

Definition of Tullock Paradox The Tullock Paradox refers to a surprising observation in the field of economics and political science regarding the relatively small amounts of money spent on lobbying for financial gain within political systems, in contrast to the very large expected benefits that can be derived from such […]

Definition of Triffin Dilemma The Triffin dilemma, also known as Triffin paradox, is a fundamental conflict in the world of international economics that arises when a national currency (such as the U.S. dollar) also serves as a global reserve currency. According to this theory, posited by Belgian-American economist Robert Triffin […]

Definition of the Triangle Model The Triangle Model, often discussed in the context of economics and organizational behavior, refers to a conceptual framework used to analyze the dynamics of an entity or system based on three key components or vertices. These vertices represent critical elements or actors whose interactions define […]

Definition of Transport Economics Transport economics is a branch of economics that deals with the allocation of resources within the transport sector and the implications of transport policy. It encompasses the study of various transport modes, including road, rail, air, and water, and considers factors such as cost, demand, infrastructure […]

Definition of the Transformation Problem The transformation problem is a theoretical puzzle in economics, particularly in the context of Marxian economics. It refers to the difficulty in reconciling the labor theory of value, which posits that the value of goods is determined by the amount of socially necessary labor time […]

Definition of Transfer Pricing Transfer pricing refers to the setting of prices for transactions between related legal entities within the same corporation. It involves the transfer of goods, services, or intangible assets between these entities. The central purpose of transfer pricing is to allocate revenue and expenses among various parts […]

Definition of Transfer Payments Multiplier The Transfer Payments Multiplier is a concept related to fiscal policy in economics that measures the impact of transfer payments (such as unemployment benefits, social security benefits, and other forms of government aid) on the overall economy. Specifically, it quantifies how initial increases in government […]

Definition of Transaction Cost Transaction costs refer to the expenses incurred during the process of buying or selling goods and services. These costs are not limited to the price of the goods themselves but include all the additional costs involved in making a transaction happen. This can encompass broker fees, […]