Archives: Terms

Definition of Porter Diamond The Porter Diamond, also known as Porter’s Diamond Model or Diamond Theory, is an economic concept developed by economist Michael Porter. It is a framework that seeks to explain why certain industries and sectors are more competitive in specific countries or regions compared to others. The […]

Definition of Pork Barrel Politics Pork barrel politics refers to the practice of politicians using government funds to finance projects and programs that primarily benefit their own constituents or political supporters. These projects are often unnecessary or of little value to the general public, but serve as a means for […]

Definition of Population Statistics Population statistics refer to the numerical information and data that provide insights into the characteristics, composition, and dynamics of a population. These statistics encompass a wide range of information, such as the total number of individuals, age distribution, gender ratio, fertility rates, mortality rates, migration patterns, […]

Definition of Political Economy Political economy is the study of how political and economic systems interact and influence each other. It focuses on the relationship between politics, government policies, and economic outcomes. This field of study encompasses a wide range of topics, including the analysis of government interventions in the […]

Definition of Planned Obsolescence Planned obsolescence refers to the practice of designing and manufacturing products with a limited lifespan or a shorter useful life than they could have. The goal of planned obsolescence is to encourage consumers to replace their products more frequently, thereby driving sales and generating more revenue […]

Definition of PIIGS PIIGS is an acronym referring to five eurozone countries: Portugal, Italy, Ireland, Greece, and Spain. These countries were grouped together because they faced similar economic challenges and were considered to have weaker economies compared to other eurozone countries. The term was originally coined by the media during […]

Definition of Personal Income Personal income refers to the total earnings received by individuals from various sources, including wages, salaries, dividends, interest, rental income, and government transfer payments, such as social security and unemployment benefits. It represents the income individuals receive before taxes and other deductions. Example Let’s consider an […]

Definition of Personal Consumption Expenditures (PCE) Personal Consumption Expenditures (PCE) is a measure of household spending on goods and services. It represents the total expenditures by individuals and households for their personal use, including durable goods (such as cars and appliances), non-durable goods (such as food and clothing), and services […]

Definition of Permanent Income Hypothesis The Permanent Income Hypothesis (PIH) is an economic theory that suggests individuals’ consumption patterns are determined by their long-term average income rather than their short-term fluctuations in income. According to this hypothesis, people adjust their consumption based on their expectations of future income rather than […]

Definition of Perfect Competition Perfect competition is a market structure in which there are many buyers and sellers, all selling identical products, and where no single buyer or seller has control over the market price. In a perfectly competitive market, all participants have access to perfect information about prices and […]