Archives: Terms

Definition of Supply Chain A supply chain refers to the entire process of producing and delivering a product or service, from the acquisition of raw materials to the final delivery to the end customer. It involves all the stages, activities, and entities that are involved in the flow of goods […]

Definition of Supply Supply refers to the quantity of a particular good or service that suppliers are willing and able to provide at different price levels in a given market. It represents the relationship between the price of a product and the quantity that sellers are willing to offer for […]

Definition of Substitution Effect The substitution effect is an economic concept that describes the change in purchasing behavior when the price of a good or service alters relative to other goods or services. It refers to the idea that consumers will substitute a cheaper alternative for a more expensive one, […]

Definition of Substitute A substitute, in economics, refers to a good or service that can be used as a replacement for another good or service. In other words, substitutes are products that satisfy similar needs or wants of consumers. When the price of one good increases, the demand for its […]

Definition of Subsidy A subsidy is a financial benefit provided by the government to individuals, businesses, or organizations to encourage or support certain economic activities. It typically involves giving money or reducing taxes to lower the cost of production or consumption of a particular good or service. Subsidies are often […]

Definition of Structural Unemployment Structural unemployment refers to a type of unemployment that occurs due to a mismatch between the skills and qualifications of job seekers and the available job opportunities. It is often caused by changes in the structure of the economy, such as technological advancements or shifts in […]

Definition of Stratified Random Sampling Stratified random sampling is a sampling technique where the population is divided into distinct subgroups, or strata, based on certain characteristics. The subgroups are created to ensure that each subgroup is internally homogeneous but different from the other subgroups. Then, a random sample is taken […]

Definition of Sticky Wage Theory The sticky wage theory states that wages in the labor market are slow to adjust to changes in the supply and demand for labor. In other words, wages tend to be “sticky” or resistant to change, even when there are fluctuations in the overall economy. […]

Definition of Statistics Statistics is the practice of collecting, organizing, analyzing, interpreting, and presenting data in a meaningful way. It involves the use of mathematical techniques and tools to gather information, summarize it, and draw conclusions or make predictions based on the data. Example To understand statistics better, let’s consider […]

Definition of State-Owned Enterprise (SOE) A State-Owned Enterprise (SOE) refers to a business entity that is wholly or partially owned by the government. In these cases, the government holds a significant stake in the company, either through direct ownership or majority control of shares. SOEs can operate in various industries, […]