Archives: Terms

Economic security is a broad concept encompassing the stability of individuals or societies in meeting basic needs such as food, housing, health care, and employment. It is a fundamental aspect of well-being, influencing not only material conditions but also contributing to emotional and psychological peace of mind. Economic security is […]

Definition of Economic Interdependence Economic interdependence is the mutual reliance between two or more economies. It reflects the extent to which countries depend on each other for resources, technology, knowledge, labor, and capital to sustain their economic growth and stability. This concept highlights the fact that in our globally connected […]

Definition of Economic Development Economic development refers to the process through which a region, country, or community improves the well-being of its citizens through targeted objectives such as increasing income, reducing poverty, creating jobs, and expanding access to healthcare and education. Unlike simple economic growth, which can be quantified through […]

Definition of Economic Democracy Economic democracy is a socio-economic philosophy that proposes to shift decision-making power from corporate managers and corporate shareholders to a larger group of public stakeholders that includes workers, customers, suppliers, neighbors, and the broader public. No single definition or approach encompasses economic democracy, but it fundamentally […]

Definition of Economic Cost Economic cost refers to the total cost of choosing one action over another. This concept encompasses not only the direct financial costs (explicit costs) but also the indirect costs (implicit costs) associated with the opportunity of the next best alternative foregone. In essence, it is the […]

Definition of Economic Base Analysis Economic Base Analysis is a tool used by economists and urban planners to understand the driving forces behind a region’s economy. It separates a region’s economic activities into two main categories: basic and non-basic. Basic industries are those that export goods and services outside the […]

Definition of Ecological Model of Competition The ecological model of competition is a theoretical framework used in economics and business to understand how companies or organisms within an ecosystem compete for resources, grow, and interact with each other. This model draws parallels between biological ecosystems and market ecosystems, suggesting that […]

Definition of Easterlin paradox The Easterlin paradox is a concept in economics that refers to the finding that, up to a point, happiness increases with wealth, but at a certain level of income, this correlation ceases to exist. This paradox, named after economist Richard Easterlin, who first documented it in […]

Definition of Dynamic Stochastic General Equilibrium (DSGE) Dynamic Stochastic General Equilibrium (DSGE) models are a class of macroeconomic models that attempt to explain economic phenomena, including policy effects and business cycles, through the interaction of multiple economic agents making optimal decisions over time under conditions of randomness or uncertainty. These […]

Duggan–Schwartz Theorem: An Overview The Duggan–Schwartz Theorem stands as a significant concept within the realm of social choice theory, a branch of economics and political science that deals with aggregating individual preferences, decisions, or welfare to reach collective decisions or social welfare in the broadest sense. Definition of the Duggan–Schwartz […]