Archives: Terms

Definition of Self-Employment Self-employment refers to a situation in which individuals establish and operate their own business rather than working as an employee for someone else. In other words, self-employed individuals are their own bosses and are responsible for managing all aspects of their business, including finances, marketing, and operations. […]

Definition of Seigniorage Seigniorage refers to the profit that a government can make by creating and issuing its own currency. It is the difference between the face value of the currency and the cost of producing and distributing it. In simple terms, it is the revenue that a government generates […]

Definition of Sector A sector refers to a specific segment or category of the economy that includes companies, industries, or organizations engaged in similar types of economic activities. Sectors are often classified based on the goods or services they produce or provide, as well as the overall function or purpose […]

Definition of Scarcity Scarcity refers to the fundamental economic problem of limited resources and unlimited wants. It is the idea that there are not enough resources available to satisfy all human desires and needs. This concept is a driving force behind economic decision-making and the study of economics as a […]

Definition of Say’s Law of Markets Say’s Law of Markets, named after the French economist Jean-Baptiste Say, states that production creates its own demand. According to this law, the act of producing goods and services generates income that is then used to purchase other goods and services. In other words, […]

Definition of Sales Tax Sales tax refers to a tax imposed on the sale of goods and services. It is typically a percentage added to the price of a product or service at the point of sale. The responsibility for collecting and remitting sales tax usually falls on the seller, […]

Definition of Robber Baron The term “Robber Baron” refers to a wealthy, powerful, and influential business tycoon who is perceived as having gained their riches through exploitative or unethical business practices. These individuals were often associated with monopolistic practices, exploitation of workers, and disregard for the welfare of society. Example […]

Definition of Rival Good A rival good is a type of good that can only be consumed or used by one person at a time. That means if one person is using or consuming the good, it prevents others from using or consuming it simultaneously. Rival goods are often physical […]

Definition of Right-to-Work Law A right-to-work law is a legislation that gives workers the freedom to choose whether or not to join or financially support a labor union as a condition of employment. These laws prohibit agreements between employers and labor unions that make union membership or payment of union […]

Definition of Ricardian Equivalence Ricardian Equivalence is an economic theory that suggests that individuals anticipate future tax liabilities and adjust their behaviors accordingly, making government financing through debt less effective. According to this theory, individuals understand that government spending must be financed either through taxation or borrowing, and they recognize […]