Archives: Terms

Definition of Full Employment Full employment refers to a situation in which all available labor resources in an economy are being utilized to their maximum potential. In other words, when an economy achieves full employment, there is no involuntary unemployment. It means that everyone who is willing and able to […]

Who is Friedrich Hayek? Friedrich Hayek was an influential economist, philosopher, and social theorist. He was born in Austria in 1899 and is best known for his contributions to the field of classical liberalism and his defense of individual freedoms and free-market capitalism. Early Life and Education Hayek grew up […]

Definition of Frequency Distribution A frequency distribution is a representation of how often different values or intervals occur in a dataset. It organizes data into groups or intervals, along with a count of how many times each value or interval appears. Frequency distributions are commonly used to analyze and understand […]

Definition of Free Trade Area A Free Trade Area (FTA) is a type of regional economic integration where member countries agree to eliminate or reduce trade barriers (such as tariffs and quotas) between them, while maintaining individual trade policies with non-member countries. The goal of an FTA is to promote […]

Definition of Free Trade Free trade refers to the unrestricted flow of goods, services, and capital between countries without the imposition of government barriers such as tariffs, quotas, or subsidies. It is based on the principle of comparative advantage, which states that countries should specialize in producing goods or services […]

Definition of Free Rider Problem The free rider problem refers to a situation where individuals or groups benefit from a public good or service without contributing to its production or costs. In other words, free riders enjoy the benefits of a good or service without paying their fair share. This […]

Definition of Free Market A free market is an economic system in which the prices for goods and services are determined by the open market and the forces of supply and demand, without any interference or regulation from the government or other external sources. In a free market, individuals and […]

Definition of Free Enterprise Free enterprise refers to an economic system in which individuals and businesses are allowed to own and control the means of production and engage in economic activities with limited interference from the government. In a free enterprise system, the allocation of resources, production, and distribution of […]

Definition of Four Asian Tigers The term “Four Asian Tigers” refers to the highly developed economies of Hong Kong, Singapore, South Korea, and Taiwan. These four countries experienced rapid economic growth and industrialization from the 1960s to the 1990s, making them known as the “Tigers” due to their similarities in […]

Definition of Foreign Aid Foreign aid refers to the assistance given by one country to another country in the form of financial support, resources, or expertise. It is typically provided to help promote economic development, alleviate poverty, improve healthcare and education, and support various other social, political, and environmental objectives. […]