Archives: Terms

Definition of Occupational Choice Model The occupational choice model is a framework used to understand how individuals decide on their careers, taking into consideration various economic factors. This model reflects the decision-making process that balances the costs and benefits associated with different occupations. Factors influencing this choice include wages, working […]

Definition of the No-Trade Theorem The No-Trade Theorem is a theoretical proposition in the field of economics and finance that suggests, under certain conditions, trading should not occur. This theorem is grounded in the idea that if all participants in the market have access to the same information and share […]

Definition of the Norwegian Paradox The Norwegian paradox refers to the seemingly contradictory situation observed in countries like Norway, where despite having abundant natural resources, particularly oil, the nation exhibits a high level of innovation and investment in other sectors. This scenario appears to contradict the “resource curse” theory, which […]

Definition of North–South Model The North–South Model is an economic concept that describes the structured relationship between the industrially developed countries (referred to as the “North”) and the less developed countries (referred to as the “South”). In essence, the model explains the dynamics, dependencies, and inequalities in trade, economic growth, […]

Definition of Non-Rivalry Non-rivalry is a characteristic of certain goods whereby the consumption or use of a good by one individual does not diminish the availability of that good for consumption by others. This is in contrast to rival goods, where if one person consumes the good, it cannot be […]

Definition of Non-Price Determinants of Supply Non-price determinants of supply refer to factors other than the price of the good itself that affect the supply of a product. These factors can influence how much of a product a supplier is willing and able to produce and sell at a given […]

Definition of Non-Price Determinants of Demand Non-price determinants of demand are factors that can influence demand for goods and services in the market, other than the price of the good or service itself. These determinants can cause a shift in the whole demand curve either to the right (increase in […]

Definition of New Trade Theory New Trade Theory (NTT) is an economic theory that emerged in the late 1970s and early 1980s, revolutionizing the understanding of international trade. Unlike classical trade theories, which emphasize comparative advantage and the mutual benefits of trade based on differences between countries, NTT introduces the […]

Definition of Net National Product (NNP) Net National Product, often abbreviated as NNP, is a comprehensive economic indicator that represents the total value of all finished goods and services produced by a country’s citizens within a specific time period, typically a year, minus depreciation. Depreciation, also known as capital consumption […]

Definition of Neo-Schumpeterian Economics Neo-Schumpeterian economics is an extension and modern interpretation of the theories originally developed by Joseph Schumpeter, an Austrian economist known for his work on economic development and innovation. This school of thought emphasizes the role of technological innovation, entrepreneurship, and the evolutionary processes in the economy […]