Archives: Terms

Definition of Voluntary Unemployment Voluntary unemployment refers to a situation where individuals choose not to engage in paid employment despite having the ability and opportunity to do so. This decision is made for a variety of reasons, including dissatisfaction with available job options, personal circumstances, or the pursuit of non-paid […]

Definition of Voluntary Exchange Voluntary exchange is a fundamental economic concept where individuals or entities freely and willingly engage in trade or transactions to obtain goods, services, or resources they desire. In a voluntary exchange, each party involved expects to benefit from the trade, as they believe the value of […]

Definition of Volume Index A volume index is a numerical measure used to track changes in the quantity or volume of goods over a specific period. Unlike a value index, which is affected by both price and quantity changes, a volume index isolates the variation in physical units sold or […]

Definition of Volatility Volatility represents the extent to which the price of an asset, market, or portfolio fluctuates over time. It is a statistical measure often used in finance to quantify the risk associated with a particular asset or market. High volatility indicates significant price variations and, hence, higher potential […]

Definition of Visible Trade Visible trade refers to the exchange of physical goods between countries in the global marketplace. This includes the import and export of tangible products such as machinery, food, clothing, fuel, and raw materials. Visible trade is an essential component of a nation’s balance of payments, representing […]

Definition of Visible Balance Visible balance, also known as the balance of trade in goods, refers to the difference in value between a country’s exports and imports of physical goods. This is a critical indicator of a nation’s economic health and illustrates how much a country is gaining from (or […]

Definition of Vertical Merger A vertical merger refers to the consolidation of two or more companies that operate at different stages within the same industry supply chain. Rather than merging with a competitor, a company merges with a supplier or a distributor, which allows for better control over the production […]

Definition of Vertical Integration Vertical Integration is a strategy whereby a company expands its business operations into different steps on the same production path. It involves taking direct control over several stages in the production or distribution of a product. This strategy aims to increase the firm’s market power by […]

Definition of Vertical Equity Vertical equity is a principle of fairness in economics that suggests individuals with a greater ability to pay should contribute more to society, typically through taxes. This concept holds that the tax system should take into account individuals’ income levels and overall wealth when determining their […]

Definition of Venture Capital Venture capital refers to financing provided by investors to startup companies and small businesses that are believed to have long-term growth potential. This form of capital is invested in early-stage, high-potential, and often high-risk entrepreneurial endeavors. Typically, venture capital funds are managed by professional investment firms […]