Archives: Terms

Definition of Marchetti’s Constant Marchetti’s Constant is a principle named after Italian physicist Cesare Marchetti, suggesting that people have a stable, daily travel time budget of about one hour. In other words, on average, individuals prefer not to spend more than an hour per day commuting. This concept has been […]

Definition of Manorialism Manorialism, also known as the manor system, was an integral part of the feudal system in medieval Europe. It describes an economic and social system of rural and agricultural organization where a landlord’s estate or manor was the central unit of agricultural production. The system revolved around […]

Definition of Mandeville’s Paradox Mandeville’s Paradox, articulated by Bernard Mandeville in his 1714 work “The Fable of the Bees: or, Private Vices, Publick Benefits,” posits a counterintuitive notion: that the selfish, “vicious” behaviors of individuals can lead to positive outcomes for society as a whole. According to this view, actions […]

Definition of Managerial Economics Managerial economics is a branch of economics that applies microeconomic analysis to decision-making techniques of businesses and management units. It bridges the gap between abstract economic theories and practical business through the application of economic principles and methodologies to solve management problems. The objective of managerial […]

Definition of Malthusianism Malthusianism refers to the economic theory derived from the ideas of the British scholar Thomas Robert Malthus in his work “An Essay on the Principle of Population” published in 1798. It emphasizes that population growth is potentially exponential while the growth of the food supply or other […]

Definition of the Malthusian Growth Model The Malthusian growth model, also known as the Malthusian Theory, is a principle that was introduced by the British scholar Thomas Malthus in his 1798 essay, “An Essay on the Principle of Population.” The theory posits that population growth is exponential while the growth […]

Definition of Major Trading Partner A major trading partner is a country that plays a significant role in the trade balance of another country, contributing to a considerable portion of either exports, imports, or both. These partners are pivotal for the economic dynamics of nations as they influence domestic industries, […]

Definition of Macroeconomic Regulation and Control Macroeconomic regulation and control refer to the set of policies and measures implemented by governments and monetary authorities to influence the overall economic environment. These policies are aimed at achieving stable economic growth, high employment levels, price stability, and a balanced external account. Macroeconomic […]

Definition of Macroeconomic Populism Macroeconomic populism is an economic approach or policy characterized by the pursuit of expansive fiscal and monetary measures aimed at achieving immediate reduction of inequality and poverty, often without adequate consideration of the long-term consequences such as inflation, unsustainable public debt, or foreign exchange crises. This […]

Definition of Macroeconomic Policy Instruments Macroeconomic policy instruments are tools used by governments and central banks to manage the economy and achieve macroeconomic objectives such as controlling inflation, managing unemployment, and promoting sustainable economic growth. These instruments can be broadly categorized into monetary policy, fiscal policy, and exchange rate policy, […]