Archives: Terms

Definition of Factor Income Factor income refers to the income (earnings) arising from the use of factors of production, which include land, labor, capital, and entrepreneurship, in the production process. In simpler terms, it is the compensation that individuals and entities receive in exchange for contributing their resources toward the […]

Unfortunately, you have not provided content for the topic “factor price equalization,” so it’s not possible to generate an extensive glossary post specifically on that subject. However, given the nature of your previous requests and the educational intent behind them, I will provide an overview of the concept of factor […]

Definition of Factor Price Factor price refers to the payment made in return for the use of a factor of production. Factors of production, including land, labor, capital, and entrepreneurship, are the essential inputs required for producing goods and services. The factor price is essentially the cost required to utilize […]

Definition of Extreme Poverty Extreme poverty refers to a condition characterized by the severe deprivation of basic human needs, including food, safe drinking water, sanitation facilities, health, shelter, education, and information. It depends not only on income but also on access to services. The World Bank defines extreme poverty as […]

Definition of Experimental Economics Experimental economics is a branch of economics that studies human behavior in a controlled laboratory setting or in naturally occurring environments outside of the lab. The aim is to test economic theories, understand how markets operate, investigate how people make decisions, and explore the effects of […]

**Title: Expenditure Function** Definition of Expenditure Function The expenditure function is a concept in economics that represents the minimum amount of money an individual needs to spend to achieve a certain level of utility, given prices. This function is crucial in consumer theory as it helps in understanding consumer behavior […]

Definition of Expeditionary Economics Expeditionary Economics (ExEcon) refers to a framework or approach aimed at rebuilding and creating economic growth and development in post-conflict, post-disaster, or transitioning nations. This relatively new field of economics focuses on rapid economic stabilization to achieve long-term sustainable growth. The idea is to prioritize entrepreneurship, […]

Definition of Expected Utility Hypothesis The Expected Utility Hypothesis is a theory in economics that suggests individuals choose between alternatives to maximize their expected utility—a measure of satisfaction or happiness derived from the outcomes of their choices. This hypothesis operates under the assumption that people are rational actors who make […]

Definition of Exogenous Variable An exogenous variable, in the context of economics, refers to any variable whose value is determined outside the model and is imposed on the model. In essence, it is a variable that influences the outcome within a model but is not influenced by any other variables […]

Definition of Exogenous Growth Model An exogenous growth model, also known as a neoclassical growth model, is a framework used in economics to explain long-term economic growth through external factors outside the control of an economy. These factors might include technological progress and innovation, which are considered to be independent […]