Archives: Terms

Definition of Product Innovation Product innovation refers to the process of creating new or significantly improved products or services to meet consumer needs, increase market share, or gain a competitive advantage. It involves the development of new functional features, enhanced design, new applications, or technological advancements that contribute to the […]

Definition of Product In economics, a product refers to any good or service that can be offered to a market to satisfy a need or want. Products can be tangible items, such as computers, clothes, and cars, or intangible services, like financial consulting, spa treatments, or software applications. The nature, […]

Definition of Producer Good Producer goods, also known as capital goods or intermediate goods, are goods used in the production process to manufacture other goods and services. They are not finished products that are sold to consumers but are essential for creating consumer goods. Typical examples of producer goods include […]

Definition of Procurement Procurement is the process of acquiring goods, services, or works from an external source, often via a tendering or competitive bidding process. This process ensures that an organization receives products or services at the best possible price when aspects such as quality, quantity, time, and location are […]

Definition of Process Innovation Process innovation refers to the implementation of a new or significantly improved production or delivery method. This includes changes in techniques, equipment, and software. The primary objective of process innovation is to enhance efficiency, reduce costs, increase productivity, and ultimately improve the competitiveness of an organization. […]

Definition of Probit Model The Probit Model is a type of regression used in statistics and econometrics to model binary outcome variables. It is specifically designed to estimate the probability that an observation with particular characteristics will fall into one of two categories, based on the assumption that the underlying […]

Definition of Probability Distribution (of a Random Variable) A probability distribution, in the context of a random variable, refers to a mathematical function that provides the probabilities of occurrence of different possible outcomes. For a discrete random variable, the probability distribution can be represented as a list or a table […]

Definition of Probability (of a Random Event) Probability, in the context of a random event, refers to the measure of the likelihood that the event will occur. It is a numerical value ranging from 0 to 1, where 0 indicates that an event will not happen and 1 indicates certainty […]

Definition of Private Sector Balance The private sector balance is an accounting concept that shows the net savings or deficits of the private sector. It represents the difference between the total income and total expenditures of private entities, which include households and businesses. An important aspect of the private sector […]

Definition of Private Property Private property refers to assets, whether tangible or intangible, that are owned by individuals or entities, allowing the exclusive right to use, manage, and transfer these assets at the owner’s discretion. This concept is foundational in capitalist economies and differentiates private ownership from public property, which […]