Definition of Expropriation Expropriation refers to the legal process through which a government, organization, or other entity takes control of privately-owned property without the owner’s consent. This includes taking over land or other assets in return for compensation or, in some cases, outright seizure without compensation. In most cases, the […]
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External Economies Of Scale
Definition of External Economies of Scale External Economies of Scale refer to benefits that come from external sources outside the control of the individual firm. Thus, they can lead to lower costs and increased productivity for all firms in the area. Example To illustrate external economies of scale, imagine a […]
Read moreExternality Of Production
Definition of Externality of Production The term externality of production refers to a spillover effect that takes place when the production of goods or services creates unintended impacts on third parties not involved in the production process. In other words, it describes the cost or benefit imposed on another party […]
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Definition of Factor A factor is any tangible or intangible item that contributes to production. Factors can be physical objects, such as buildings or machinery, or they can be intangible, such as knowledge and expertise. Example Let’s take the example of a manufacturing company that produces furniture. The production of […]
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Definition of Factor Market A factor market is a market where firms purchase the factors of production they need to create goods and services. The factors of production include land, labor, capital, and entrepreneurship. Unlike product markets, which involve the exchange of final goods and services between consumers and producers, […]
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Definition of Factors of Production Factors of Production are the inputs that are used in the production of goods and services in order to create wealth. They include natural resources, labor, capital, and entrepreneurship. These factors are combined together to create goods and services that are generally sold to consumers. […]
Read moreClassical Economics
Definition of Classical Economics Classical economics is a school of economic thought that originated in the late 18th century and lasted until the late 19th century. It is based on the ideas of famous economists like Adam Smith, David Ricardo, and John Stuart Mill. Classical economics emphasizes the role of […]
Read moreBlack Market
Definition of Black Market A black market is a market where goods or services are traded illegally without the government’s knowledge or regulation. That means it is an underground economic system where transactions are conducted outside of the law. These activities often involve the exchange of illegal goods or services, […]
Read moreApplied Economics
Definition of Applied Economics Applied Economics is a branch of economics that applies economic theories and principles to real-world situations. It is concerned with using economic analysis to solve practical problems in areas such as business, finance, and public policy. It is distinguished from theoretical economics, which is concerned with […]
Read moreMixed Economic System
Definition of Mixed Economic System A mixed economic system is an economic system that combines elements of both a market economy and a command economy. In this system, both private and government entities have an active role in determining economic activity and making economic decisions. Example One example of a […]
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