Archives: Terms

Definition of Spatial Price Discrimination Spatial price discrimination refers to the practice of charging different prices for the same product or service in different geographic locations. This pricing strategy leverages variations in market demand, competition, and willingness to pay across different regions. The aim is to maximize profits by extracting […]

Definition of Spatial Model A spatial model in economics refers to a framework that analyzes economic phenomena across different locations and regions. These models are used to understand how spatial factors like distance, geography, and territorial boundaries influence economic activities. They help in explaining the distribution of industries, the location […]

Definition of Spare Capacity Spare capacity refers to the unused production potential within an economy, business, or organization. It is the ability to produce more goods and services than currently being produced without additional capital expenditure. This concept indicates that resources such as labor, machinery, and land are not being […]

Definition of Sovereign Debt Sovereign debt refers to the money or credit owed by a national government. This debt arises when a country’s government borrows funds to finance public spending when revenues, primarily from taxes, are insufficient. Typically, governments issue bonds to both domestic and international investors, promising to repay […]

Definition of Sources of Capital Sources of capital refer to the various means through which an organization can obtain funds to operate, grow, and invest in various projects. This capital is essential for businesses to finance their operations, expand their infrastructure, or invest in new ventures. Sources of capital primarily […]

Definition of Sound Money Sound money refers to a monetary system that is based on a reliable and stable medium of exchange that maintains its value over time. This type of monetary system is free from significant manipulation or devaluation by governments or central banks. The concept stands in contrast […]

Definition of Solvency Solvency refers to the ability of an organization to meet its long-term financial commitments and obligations. It reflects the overall financial health of a company and its capacity to sustain operations over the long term. Solvency is determined by analyzing the company’s assets, liabilities, and equity to […]

Definition of the Solow Growth Model The Solow Growth Model, also known as the Solow-Swan Model, is a neoclassical model of economic growth that seeks to explain long-term economic growth by looking at capital accumulation, labor or population growth, and increases in productivity, notably technological progress. Named after Robert Solow, […]

Definition of Sole Trader A sole trader, also known as a sole proprietor, is an individual who owns and operates a business alone. Being a sole trader means the individual is solely responsible for all aspects of the business, including its debts and obligations. This type of business structure is […]

Definition of Sole Proprietor A sole proprietor is an individual who owns and operates an unincorporated business by themselves. This type of business structure is the simplest and most common form of business ownership. It is typically characterized by its simplicity and ease of setup, allowing individuals to start business […]