Archives: Terms

Definition of Quality-Adjusted Life Years (QALYs) Quality-Adjusted Life Years (QALYs) are a measure used to evaluate the value of health outcomes by combining both the quality and the quantity of life lived. This metric is often used in health economics to assess the effectiveness of medical treatments and health interventions. […]

Definition of Quality Standards Quality standards are a set of criteria or specifications established by regulatory authorities, organizations, or industry bodies to ensure that products, services, or processes meet certain levels of quality, safety, and performance. These standards are designed to protect consumers, encourage consistent quality across different providers, and […]

Definition of Quality Ladder The concept of the “quality ladder” describes a model in economics where firms and economies progress through different levels of product quality over time. Each rung on the ladder represents a higher level of quality and sophistication in a product. Climbing up the quality ladder involves […]

Definition of Quality Control Quality Control (QC) is a process by which entities review the quality of all factors involved in production. It involves systematic measurement, comparison with a standard, monitoring of processes, and an associated feedback loop to ensure that end products meet the specified quality criteria and performance […]

Definition of Qualitative Choice Models Qualitative Choice Models are statistical models used to analyze decisions where the outcome variable is categorical rather than continuous. These models help determine the probability of different possible outcomes based on the values of various explanatory variables. Commonly used in economics, marketing, and social sciences, […]

Definition of Qualification of Accounts The qualification of accounts refers to the auditor’s formal statement or caveat appended to their audit report when the financial statements presented by a company are not in complete accordance with generally accepted accounting principles (GAAP) or when there are limitations on the scope of […]

Definition of Pyramid Scheme A pyramid scheme is a fraudulent investment strategy that recruits members via a promise of payments or services for enrolling others into the scheme, rather than supplying investments or sale of products. As more people are recruited, a pyramid structure forms, each level needing a greater […]

Definition of Put Option A put option is a financial contract that gives the holder the right, but not the obligation, to sell a specified quantity of an underlying security at a predetermined price, known as the strike price, within a specific time period. This type of option is often […]

Definition of Pure Floating Exchange Rate A pure floating exchange rate, also known as a clean float, is a type of exchange rate regime in which a country’s currency value is allowed to fluctuate according to the foreign exchange market. Unlike fixed exchange rates, where the value of a currency […]

Definition of Purchase Tax Purchase tax, also known as a sales tax, is a tax imposed on the sale of goods and services, typically added at the point of purchase. This tax is generally collected by the retailer or service provider and then passed on to the government. Purchase taxes […]