Definition of Economist Economists are professionals who study and analyze the production, consumption, and distribution of goods and services in an economy. They use various economic theories, models, and data to understand how individuals, organizations, and governments make decisions and allocate resources. Economists try to explain how different economic policies, […]
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Engel’s Law
Definition of Engel’s Law Engel’s Law states that the proportion of income spent on food decreases as income increases, assuming that all other factors remain constant. This empirical observation was first made by German statistician Ernst Engel in 1857 and has been confirmed by many subsequent studies. Example To illustrate […]
Read moreEndowment Effect
Definition of Endowment Effect The Endowment Effect is a cognitive bias that describes the phenomenon that people attribute more value to an object they own or possess than they would to the same object if they did not own it. In other words, people have a tendency to demand a […]
Read moreEntrepreneur
Definition of Entrepreneur An entrepreneur is an individual who creates a new business venture or takes over an existing business and assumes full responsibility for its success or failure. Entrepreneurs are known for their innovative and creative ideas and their willingness to take calculated risks to bring them to fruition. […]
Read moreEnvironmental Economics
Definition of Environmental Economics Environmental economics is a subfield of economics that focuses on the relationship between the economy and the environment. It seeks to address issues such as pollution, natural resource depletion, and climate change. Environmental economics aims to find solutions that minimize the negative impact of economic activities […]
Read moreEquilibrium
Definition of Equilibrium Equilibrium is a state of balance or stability in an economic market in which the demand for a product or service meets the supply. This state of balance is reached when the quantity demanded and supplied is the same at a particular price level. In free-market economics, […]
Read moreEquity-Efficiency Tradeoff
Definition of Equity-Efficiency Tradeoff The equity-efficiency tradeoff is a concept that describes the relationship between the distribution of resources or benefits in a society and the overall efficiency of the economy. It means that an equal distribution of resources can lead to lower economic efficiency. At the same time, a […]
Read moreEuropean Community (EC)
Definition of European Community (EC) The European Community (EC) was a regional organization established in 1957 by the Treaty of Rome. It was one of the three pillars of the European Union (EU) until it became a part of the EU itself in 1993. The primary objective of the EC […]
Read moreEuropean Economic And Monetary Union (EMU)
Definition of European Economic and Monetary Union (EMU) The European Economic and Monetary Union (EMU) is a group of European Union (EU) countries that have adopted a common currency, the euro. It was launched in 1992 to promote economic integration and increase economic stability within Europe. The EMU includes countries […]
Read moreEuropean Union (EU)
Definition of European Union (EU) The European Union (EU) is a political and economic union of 27 member countries located mainly in Europe. It was first established in November 1993 and has since grown in size and importance. The EU operates as a single market with a common trade policy, […]
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