Archives: Terms

Definition of Professional Body A professional body, also known as a professional association or organization, is a group of individuals who are experts in a specific field, profession, or area of practice. These organizations aim to advance the interests of their members, establish high standards of competence and ethics, provide […]

Definition of Productive Efficiency Productive efficiency is a situation in which an economy or entity cannot produce more of one good without reducing the production of another good. This implies that the available resources are being utilized to their fullest potential. In other words, it pertains to a state where […]

Definition of Production Subsidy A production subsidy is a financial assistance provided by the government to producers of goods and services. This subsidy aims to encourage increased production, stabilize prices, and improve competitiveness. By reducing the overall costs for producers, production subsidies can make domestic goods cheaper and more competitive […]

Definition of Production Possibility Set The Production Possibility Set represents all the possible combinations of goods and services that can be produced by an economy, given its resources and technology. It encompasses all feasible production points that an economy can achieve, based on its available inputs such as labor, capital, […]

Definition of Production Function The production function is a mathematical representation that describes the relationship between inputs and outputs in the production process. It specifies the maximum output that can be produced with a given set of inputs, such as labor, capital, land, and technology. The production function is typically […]

Definition of Production Externality Production externalities occur when the production activities of one firm or entity have an impact on third parties that are not directly involved in the transaction. These impacts can be either positive or negative and are not reflected in the market prices. When externalities are present, […]

Definition of Production Production is the process of creating goods and services by combining various inputs, such as labor, capital, and raw materials, to generate output that is valuable to consumers. It encompasses a wide range of activities, including manufacturing, mining, agriculture, and the provision of services. The aim is […]

Definition of Product Proliferation Product proliferation refers to the strategy adopted by companies to increase the variety and number of their products within the same market. This approach is often employed to cater to diverse customer preferences, increase market share, and create barriers for new entrants. By offering multiple products […]

Definition of Product Life Cycle The product life cycle is a theoretical model that describes the stages a product goes through from its inception to its eventual withdrawal from the market. These stages include Introduction, Growth, Maturity, and Decline. Each phase of the product life cycle is characterized by different […]

Definition of Product Liability Product liability refers to the legal obligation of a manufacturer or seller to compensate for injury or damage caused by a defective product they have supplied. This responsibility ensures that products reaching consumers are safe for use and mandates accountability if a product flaw results in […]