Archives: Terms

Definition of Revealed Preference Revealed preference refers to a theory in economics that suggests that individuals reveal their preferences based on their actual choices and behavior. According to this theory, a person’s preferences can be determined by observing the choices they make in various situations and contexts. It assumes that […]

Definition of Retail Sales Retail sales refer to the total revenue generated from the sales of goods and services by retailers to individual consumers for personal use. These sales typically occur in physical stores, online platforms, or through mail-order catalogs. They are an important indicator of consumer spending and overall […]

Definition of Retail Price Index (RPI) The Retail Price Index (RPI) is a measure of inflation that tracks the changes in the average prices of a basket of goods and services purchased by households. It is widely used by economists, policymakers, and consumers to gauge the level of price changes […]

Definition of Resource Curse The resource curse, also known as the paradox of plenty, refers to the phenomenon where countries with abundant natural resources, particularly non-renewable resources like oil, gas, or minerals, experience poor economic growth and development, high levels of corruption, authoritarian regimes, and social unrest. This term was […]

Definition of Research and Development (R&D) Research and development (R&D) refers to activities undertaken by individuals, organizations, or governments to enhance knowledge, create new products, processes, or services, or improve existing ones. R&D activities typically involve scientific research, experimentation, and innovation. Example To provide an example of R&D, let’s consider […]

Definition of Rent Seeking Rent seeking refers to the process of individuals or groups trying to obtain economic benefits or privileges through non-productive means. In other words, it involves seeking advantages, such as government subsidies, tax breaks, or favorable regulations, in order to increase one’s own wealth without creating wealth […]

Definition of Rent Control Rent control refers to a set of laws or regulations that limit how much a landlord can raise the rent on a residential property. These laws are usually implemented to protect tenants, particularly in areas where housing costs are high and there is a shortage of […]

Definition of Renewable Resource A renewable resource is a natural resource that can be replenished or restored over a relatively short period of time. This means that the resource is not depleted or exhausted when it is used. Some examples of renewable resources include sunlight, wind, water, and forests. Example […]

Definition of Relative Purchasing Power Parity (RPPP) Relative Purchasing Power Parity (RPPP) is an economic theory that states that the exchange rate between two countries should adjust to reflect changes in the price levels of those countries. According to RPPP, if there is a difference in inflation rates between two […]

Definition of Regressive Tax A regressive tax is a tax system in which the tax burden falls more heavily on lower-income individuals or households compared to higher-income individuals or households. This means that as income increases, the proportion of income paid in taxes decreases. In other words, the tax rate […]