Archives: Terms

Definition of Slack Slack in economics refers to the excess capacity within an economy or within a business. It is the gap between the economy’s current output and its potential output if all resources were fully utilized. This concept is often used during discussions of labor markets, production, and overall […]

Definition of Skills Skills refer to the abilities and proficiencies acquired through education, training, or experience that enable individuals to perform specific tasks or activities competently. Skills can be categorized broadly into two types: hard skills and soft skills. Hard Skills: These are technical or job-specific abilities, often quantifiable and […]

Definition of Skilled Work Skilled work refers to jobs that require specialized abilities, training, and education to perform efficiently and effectively. These roles often demand a certain level of proficiency and expertise in specific fields or industries. Skilled workers are typically those who have developed their competencies through formal education, […]

Definition of Skewness Skewness refers to the asymmetry present in the distribution of data around its average. In simpler terms, it describes how data points are distributed with respect to their mean. If data points are evenly distributed on both sides of the mean, the distribution is symmetrical and has […]

Definition of Size Distribution of Firms The size distribution of firms refers to the way firms are spread across different size categories within an economy. This can be measured by several metrics, such as the number of employees, total sales, total assets, or market value. The size distribution provides insights […]

Definition of Single-Peaked Preferences Single-peaked preferences refer to a specific type of preference ordering where an individual’s utility or satisfaction increases up to a certain point and then decreases. This concept is pivotal in public choice theory and social choice theory because it helps to determine the stability and predictability […]

Definition of Single Market A single market is an economic arrangement between member countries wherein they agree to the free movement of goods, services, capital, and labor as though they were within a single country’s domestic market. The primary objective of a single market is to eliminate trade barriers such […]

Definition of Single European Act The Single European Act (SEA) is a foundational treaty within the European Union (EU) that was established to realize the goal of creating a single internal market across the member states. Signed in February 1986 and coming into force in July 1987, the SEA represents […]

Definition of Single Currency A single currency is a type of currency that is shared across multiple countries or regions, facilitating seamless trade and economic integration. The most notable example of a single currency is the Euro, which is used by 19 of the 27 European Union countries that form […]

Definition of Simultaneous Equations Model A Simultaneous Equations Model (SEM) is a statistical model in which multiple interdependent variables and equations are estimated together. In contrast to traditional single-equation models, each equation in an SEM represents a relationship where one variable can be both a dependent and an independent variable […]