Definition of Economic Forecasting Economic forecasting is the process of predicting future market trends and economic variables, such as GDP growth rate, inflation rate, interest rates, and employment rates. Economic forecasters analyze historical data, current economic conditions, and other factors to project what may happen in the future. These forecasts […]
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Economic Efficiency
Definition of Economic Efficiency Economic efficiency refers to the optimal use of resources to produce goods and services. That means producing the maximum output using the minimum inputs. When the economy is operating efficiently, it is creating the most value for society with the available resources. Example To illustrate economic […]
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Definition of Economic Life Economic life refers to the period during which a capital asset remains useful and productive in providing value to its owner. This period is determined by various factors like wear and tear, technological advancement, and market demand. The concept of economic life is essential in accounting, […]
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Definition of Economic Recovery Economic recovery refers to the process of an economy moving back towards its pre-recession levels of economic activity. It is characterized by an increase in economic output and a reduction in unemployment rates. Typically, this phase follows a recession, depression, or economic crisis. Example During the […]
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Definition of Economic Rent Economic rent is defined as the income earned above the necessary costs of production or of entering into a contractual agreement. Simply put, it is the difference between what someone is paid and what they need to be paid to do a particular job or provide […]
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Definition of Economic Shock An economic shock refers to any unexpected and significant event that disrupts an economy’s normal functioning. Such shocks can come in various forms, including natural disasters, political turmoil, financial crises, or pandemics. When an economic shock occurs, it can have severe consequences like a slump in […]
Read moreEconomic Stimulus
Definition of Economic Stimulus Economic stimulus refers to policies and actions undertaken by the government or central bank to boost economic growth and prevent or end a recession or depression. The stimulus comes in various forms, such as tax cuts, infrastructure spending, and monetary policy changes, such as reducing interest […]
Read moreEconomic Value
Definition of Economic Value Economic value is the maximum amount of money that an individual is willing to sacrifice in exchange for a good or service. This value is influenced by various factors such as scarcity, demand, supply, production cost, quality, and utility. Example To understand the concept of economic […]
Read moreEconomies Of Scope
Definition of Economies of Scope Economies of Scope refer to the cost savings that arise when a company produces two or more products together using a shared input or process instead of separately producing each product using separate inputs and processes. In other words, it is a measure of the […]
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Definition of Elastic Elastic is a term used in economics to describe the responsiveness of demand or supply to price changes. When a product or service is considered elastic, it means that a change in price has a significant impact on the quantity demanded or supplied. By contrast, when it […]
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