Definition of Excess Capacity Excess capacity is defined as the unused production capacity in a market. This means that production levels are lower than they could be, given the existing technology and available resources. Or in other words, it is an underutilization of the resources available in a market. Example […]
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Excess Reserves
Definition of Excess Reserves Excess reserves refer to the amount of funds that a bank holds beyond the required level. The required reserve is the minimum amount of funds a bank must hold in order to meet its regulatory obligations. If a bank holds more than the required level, the […]
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Definition of Excise Tax An excise tax is a tax that is levied on a specific good or service, rather than on income or property taxes. Governments often use excise taxes to raise revenue and discourage the consumption of certain goods and services by making them more expensive to consumers. […]
Read moreExogenous Growth
Definition of Exogenous Growth Exogenous growth is a type of economic growth that is driven by external factors, such as technological progress or population growth, rather than by internal factors, such as investment or savings rates. In other words, exogenous growth is not caused by efforts made by people but […]
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Definition of Expansion Expansion refers to the phase of the business cycle characterized by an increase in economic growth, employment, and overall prosperity. In other words, it is a period in which the economy is growing and businesses are prospering. During an expansion, the gross domestic product (GDP) typically rises, […]
Read moreExpansionary Policy
Definition of Expansionary Policy Expansionary policy (e.g., expansionary fiscal policy) is a macroeconomic strategy that increases the money supply or decreases taxes to stimulate economic growth. This policy aims to increase aggregate demand by increasing consumer spending or investment. The expansionary policy is typically used during an economic downturn or […]
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Definition of Expatriate Expatriate, or “expat” for short, refers to an individual living and working in a country other than his or her native country. The term is not limited to people on work assignments; it includes anyone who relocates internationally for an extended period, for various reasons such as […]
Read moreExplicit Cost
Definition of Explicit Cost Explicit costs refer to the out-of-pocket expenses that a business incurs during its course of operations. These costs are easily quantifiable and can be identified as direct monetary payments made for acquiring goods or services needed to produce a product or render a service. They are […]
Read moreExpenditure Method
Definition of Expenditure Method Expenditure method is one of three methods used to calculate a country’s gross domestic product (GDP). This method measures GDP by adding up all the expenditures made by individuals, businesses, and the government in a given economy. This includes household consumption, investments, government spending, and net […]
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Definition of Export Export means sending goods or services by an individual or company located in one country to another country, usually with the goal of selling them there. Exports play a significant role in any country’s economy and are usually traded for currencies, commodities, or other products. Example A […]
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