Archives: Terms

Definition of Foregone Earnings Foregone earnings refer to the potential income that is sacrificed or lost when an individual or business chooses a particular course of action. It represents the earnings that could have been obtained if a different decision had been made or if a different opportunity had been […]

Definition of Flat Tax A flat tax is a taxation system where all individuals and entities pay the same tax rate or percentage on their income, regardless of their income level or financial resources. This means that there are no tax brackets or progressive tax rates based on different income […]

Definition of Fixed Capital Fixed capital refers to the tangible assets that are used in the production process and are not consumed in the short term. These assets are essential for a business to operate and include items such as buildings, machinery, equipment, vehicles, and infrastructure. Example To understand fixed […]

Definition of Fiscal Multiplier The fiscal multiplier is a measure of how much a change in government spending or taxation affects overall economic activity. It represents the ratio of a change in national income to the initial change in government spending or taxation. In other words, it shows how much […]

Definition of Fiscal Deficit Fiscal deficit refers to the difference between a government’s total spending and its total revenue in a given period. It is an important indicator of a government’s financial health and can be used to measure its borrowing requirements. In other words, it represents the amount of […]

Definition of Firm A firm is an organization, regardless of its legal structure, that engages in economic activities and produces goods or services to meet the needs and wants of consumers. It is often referred to as a business entity that brings together resources such as labor, capital, and materials […]

Definition of Financial Inclusion Financial inclusion refers to the availability and accessibility of financial services to individuals and businesses, particularly those who are unbanked or underserved. It involves ensuring that all people have access to affordable and appropriate financial products and services, such as savings accounts, credit, insurance, and payment […]

Definition of the Federal Trade Commission (FTC) The Federal Trade Commission (FTC) is an independent agency of the United States government. It was established in 1914 with the goal of preventing anti-competitive business practices and protecting consumers from unfair or deceptive practices. The FTC is responsible for enforcing various federal […]

Definition of Federal Poverty Level (FPL) The Federal Poverty Level (FPL) is a measure used in the United States to determine eligibility for certain government programs and assistance. It is a set income threshold that determines whether an individual or household is considered to be living in poverty. The FPL […]

Definition of Fast Fashion Fast fashion refers to the rapid production and consumption of inexpensive clothing, often inspired by current fashion trends. The term “fast” refers to the quick turnaround time from design to production to retail. Fast fashion brands typically offer a wide variety of styles that are affordable […]