Archives: Terms

Definition of Fair Labor Standards Act The Fair Labor Standards Act (FLSA) is a United States federal law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards for employees in both the private and public sectors. The primary goal of the FLSA is to ensure fair compensation […]

Definition of Equation of Exchange The equation of exchange is a fundamental economic equation that represents the relationship between the money supply, the velocity of money, the price level, and real output in an economy. It is typically expressed as MV = PQ, where M represents the money supply, V […]

Definition of Efficiency Efficiency refers to the ability to achieve maximum output with minimum input or resources. It is a measure of how well resources are utilized to accomplish a desired outcome. In simple terms, efficiency is about doing things in the most optimal and effective way, minimizing waste and […]

Definition of Economic Equilibrium Economic equilibrium refers to a state of balance in an economy where the aggregate demand and aggregate supply are equal. In this state, there is no upward or downward pressure on prices and the economy is at rest. It is characterized by the optimal allocation of […]

Definition of Durable Goods Orders Durable goods orders are a key economic indicator that measures the number of orders placed with manufacturers for durable goods. Durable goods are products with a lifespan of at least three years, such as cars, appliances, and electronics. This indicator is often used to gauge […]

Definition of Dove Dove is a well-known brand that specializes in personal care products. It was founded in 1957 and has since become a renowned name in the beauty industry. Dove’s product range includes items such as body wash, soap, shampoo, conditioner, and deodorant. The brand is known for its […]

Definition of Disguised Unemployment Disguised unemployment refers to a situation where individuals appear to be employed, but their contribution to the productive output of an economy is minimal or nonexistent. In other words, it is a form of unemployment where people are technically employed but are not actually productive or […]

Definition of Devaluation Devaluation refers to the decrease in the value of one currency relative to other currencies in a fixed exchange rate system. It is usually implemented by a country’s government or central bank as a deliberate policy measure to stimulate exports, reduce trade deficits, or boost economic competitiveness. […]

Definition of Arrow’s Impossibility Theorem Arrow’s Impossibility Theorem, formulated by economist Kenneth Arrow, is a mathematical theorem that highlights the limitations of democratic decision-making systems. It states that there is no perfect voting method for ranking preferences that satisfies a set of desirable criteria simultaneously. In other words, it is […]