Archives: Terms

Definition of National Bureau of Economic Research (NBER) The National Bureau of Economic Research (NBER) is a non-profit organization that conducts economic research and serves as a leading authority on business cycles and other economic phenomena. It was founded in 1920 and is based in Cambridge, Massachusetts. The NBER is […]

Definition of Nash Equilibrium Nash Equilibrium is a concept in game theory that refers to a situation in which each player in a game makes the best decision given the decisions of the other players. In other words, no player has an incentive to unilaterally change their strategy because doing […]

Definition of Narrow Money Narrow money refers to the most liquid forms of money in an economy, typically consisting of physical currency (coins and banknotes) and highly liquid financial assets like checking accounts. It is called “narrow” because it represents a narrower measure of money supply compared to broader measures […]

Definition of Multiplier The multiplier effect refers to the phenomenon where an initial change in investment or government spending leads to a more significant increase in overall economic output and income. It is based on the idea that when businesses and individuals spend more, it leads to increased demand for […]

Definition of Most-Favored-Nation Clause The Most-Favored-Nation (MFN) clause is a principle in international trade that requires a country to provide its trading partners with the same favorable treatment that it provides to its most favored trading partner. This means that if a country grants tariff concessions, lowered trade barriers, or […]

Definition of Morbidity Rate The morbidity rate is a measure used to quantify the occurrence or prevalence of a disease or health condition within a specific population during a specific period of time. It represents the number of individuals who are affected by a particular illness or condition, expressed as […]

Definition of Monopsony Monopsony is a market structure in which there is a single buyer for a good or service. In other words, there is only one dominant buyer and many sellers. This gives the buyer significant market power, as it can dictate the terms of trade and exert control […]

Definition of Monopolistic Markets Monopolistic markets are characterized by a single seller or producer that has control over the supply of a good or service. In these markets, the seller faces limited or no competition, allowing them to dictate prices and exert significant control over the market. Monopolistic markets often […]

Definition of Monopolist A monopolist is a single seller in the market who possesses the exclusive control or domination over the supply of a particular product or service. That means they have no competitors and can dictate the price and quantity of their offering. Monopolies can arise due to various […]

Definition of Money Illusion Money illusion refers to the tendency of individuals to perceive changes in monetary value based on nominal values rather than real values. In other words, people often focus on the face value of money without considering changes in purchasing power due to inflation or deflation. Example […]