Definition of Allocational Efficiency Allocational efficiency refers to the optimal allocation of resources in an economy that maximizes its overall welfare. It happens when resources are distributed in a way that produces what society wants at the lowest possible cost. That means, for every product or service, the resources are […]
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Anti-Dumping Duty
Definition of Anti-Dumping Duty Anti-dumping duty is a tax levied by a government on imported goods that are sold at a price lower than their fair market value or below the cost of production. The main objective of anti-dumping duties is to protect domestic industries from foreign companies who are […]
Read moreAntitrust
Definition of Antitrust Antitrust refers to government policies and regulations that aim to promote fair competition and prevent monopolistic practices in the market. These policies and regulations are designed to ensure that no single firm or group of firms has too much power/control over the market. The primary goal of […]
Read moreArc Elasticity
Definition of Arc Elasticity Arc elasticity is a measure of the responsiveness of demand or supply to a change in price by comparing the percentage change in quantity to the percentage change in price. This measure is called the arc elasticity of demand because it calculates the elasticity of demand […]
Read moreAsia-Pacific Economic Cooperation (Apec)
Definition of Asia-Pacific Economic Cooperation (APEC) The Asia-Pacific Economic Cooperation (APEC) is a regional intergovernmental forum that aims to promote economic growth and cooperation in the Asia-Pacific region. It was founded in 1989 and consists of 21 member economies including Australia, Canada, China, Japan, South Korea, the United States, and […]
Read moreBreakeven Point
Definition of Breakeven Point The breakeven point is the point at which total revenue equals total costs. That means it is the point at which a business neither makes a profit nor a loss. It is calculated by dividing the total fixed costs by the contribution margin per unit. Example […]
Read moreAbenomics
What is Abenomics? Abenomics is a set of economic policies adopted by the Japanese government under the leadership of Prime Minister Shinzo Abe. These policies were designed to address the economic stagnation that Japan had been experiencing for almost two decades. The “Three Arrows” of Abenomics Abenomics is built around […]
Read moreAggregation
Definition of Aggregation Aggregation in economics refers to the process of combining individual economic variables into a larger, more comprehensive measure. This concept acknowledges the fact that many individual economic behaviors can only be analyzed in the context of their overall influence on the economy, as opposed to looking at […]
Read moreArithmetic Mean
Definition of Arithmetic Mean The arithmetic mean is the average of a group of numbers, calculated by dividing the sum of those numbers by the total count of the group. It is one of the most commonly used measures of central tendency in statistics and represents the midpoint of a […]
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Definition of Augmented Product An augmented product is a product that offers additional benefits or services beyond its basic function. It provides additional value to customers, distinguishing it from similar products on the market. These additional benefits or services may include warranties, customer service, or product support, among others. Example […]
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