Archives: Terms

Definition of Supplementary Benefit The term “Supplementary Benefit” refers to additional financial aid provided to individuals or households to supplement their income. These benefits are usually granted by the government or other institutions to help people meet their living expenses. This aid is particularly important for low-income families, the elderly, […]

Definition of Supernormal Profit Supernormal profit, also known as economic profit or abnormal profit, refers to the returns over and above the normal profit that arises when total revenue exceeds the total costs, including both explicit and implicit costs. Normal profit is the minimum level of earnings necessary for a […]

Definition of Superannuation Superannuation is a form of retirement savings which employees ensure through compulsory contributions to a trust or pension fund throughout their working lives. The funds accumulated are then used to provide lump sum or regular payments to individuals once they retire. In various countries, superannuation systems are […]

Definition of Sunspot Theory Sunspot theory is an economic hypothesis that suggests that random, extrinsic factors—referred to as “sunspots”—can cause fluctuations in economic activity, even if these factors do not directly affect fundamental economic variables. In essence, sunspots are economic phenomena that should not logically impact the economy but do […]

Definition of Substitution Effect Substitution effect refers to the change in a consumer’s consumption choices resulting from a change in the relative prices of goods. When the price of a good changes, consumers will generally buy more of the cheaper good and less of the more expensive one, holding their […]

Definition of Subsistence Wages Subsistence wages refer to the minimum level of income that an individual needs to meet their basic needs, which include food, shelter, clothing, and other essentials required to maintain a minimum standard of living. This concept is closely tied to the notion of a living wage, […]

Definition of Subsistence Level Subsistence level refers to the minimum level of income, expenditure, or consumption required for maintaining a basic standard of living. This level ensures that individuals can meet their basic needs, such as food, shelter, clothing, and essential healthcare. It is often used in economic discussions to […]

Definition of Subsidized Credit Subsidized credit refers to a loan extended under more favorable terms than those prevalent in the market due to some form of financial support provided by a government or another institution. This form of credit often includes lower interest rates, longer repayment periods, or grants to […]

Definition of Subsidiary A subsidiary is a company that is completely or partially owned and controlled by another company, which is known as the parent or holding company. This relationship allows the parent company to control the subsidiary’s operations, management, and policies while maintaining its status as a separate legal […]

Definition of Subsidiarity Subsidiarity is a principle relevant in fields like politics, economics, and social issues. It dictates that matters should be handled by the smallest, lowest, or least centralized competent authority. This means that decisions should be made as close as possible to the level at which they will […]