Archives: Terms

Definition of Green Paradox The Green Paradox is a concept that refers to a situation where well-intentioned policies to reduce carbon emissions and combat climate change have the unintended consequence of accelerating the problem before any benefits are realized. This concept, proposed by German economist Hans-Werner Sinn, suggests that certain […]

Definition of Green Economy The concept of a green economy centers on sustainable economic progress that fosters low-carbon, socially inclusive development. It is an economic system aimed at reducing environmental risks and ecological scarcities, and that aims for sustainable development without degrading the environment. The green economy is built on […]

Definition of The Great Moderation The Great Moderation refers to a period of significant reduction in the volatility of business cycle fluctuations in major economies, notably in the United States, which spanned from the mid-1980s until the financial crisis of 2007-2008. This era was marked by sustained economic growth, low […]

Definition of Government Spending Government spending encompasses all the expenditures made by government entities, including salaries of public servants, public projects, defense, healthcare, education, and social services. This term refers to the use of fiscal policy tools by a government to influence the economic and social landscape of a country. […]

Definition of Government Revenue Government revenue comprises the funds collected by the government from various sources to finance public expenditures. These funds are essential for the government to carry out its functions, including infrastructure development, education, defense, healthcare, and social services. The primary sources of government revenue include taxes, fees, […]

### Gossen’s Third Law #### Definition of Gossen’s Third Law Gossen’s Third Law, though less frequently discussed compared to his first two laws, revolves around the idea of the “diminishing marginal utility of money.” It posits that as the wealth of an individual increases, the marginal utility of money to […]

Definition of Gossen’s Second Law Gossen’s Second Law, often referred to as the “Law of Equi-Marginal Utility,” is a principle in economics that describes how consumers allocate their income across different goods and services to maximize total utility. The law states that for a consumer to achieve maximum satisfaction, the […]

Definition of Gossen’s First Law Gossen’s First Law, also known as the Law of Diminishing Marginal Utility, is a principle in economics that describes how the satisfaction (utility) a consumer derives from consuming additional units of a good or service diminishes with each additional unit consumed, assuming all other factors […]

Definition of Gorman Polar Form The Gorman polar form is a specific representation in the field of economics that characterizes consumer preferences in a way that can be aggregated to model the behavior of the entire market or an economy. This mathematical representation is crucial for understanding and analyzing how […]

Definition of the Goodwin Model The Goodwin model, named after economist Richard Goodwin, represents a dynamic description of the relationship between economic growth, income distribution, and the exploitation of labor. This cyclical model is rooted in Marxist economics and leverages differential equations to illustrate how capital accumulation and labor dynamics […]