Archives: Terms

Definition of Post Office Savings Post Office Savings refer to various financial products and accounts offered by postal services in many countries. These savings schemes are designed to encourage people to save money securely while earning reasonable interest rates. Typically, these savings accounts are backed by the government, making them […]

Definition of Market Equilibrium Market equilibrium is a condition in a market where the quantity supplied is equal to the quantity demanded, leading to a stable market price. This balance occurs at a specific price point, known as the equilibrium price, where there is no tendency for the price to […]

Definition of Portfolio Theory Portfolio Theory, also known as Modern Portfolio Theory (MPT), is a mathematical framework for constructing a portfolio of assets in such a way that maximizes expected return for a given level of risk. Developed by Harry Markowitz in 1952, this theory introduces the concept of diversification […]

Definition of Portfolio Selection Portfolio selection refers to the process of choosing a mix of various investment assets to achieve an optimal balance between risk and return based on an investor’s financial goals, risk tolerance, and investment horizon. The main objective is to maximize returns while minimizing risks by diversifying […]

Definition of Portfolio A portfolio in economics and finance refers to a collection of investment assets owned by an individual or an institution. These assets can include stocks, bonds, cash, real estate, mutual funds, art, and other investment vehicles. The primary purpose of a portfolio is to diversify investments, spreading […]

Definition of Portable Pension A portable pension is a type of retirement plan that allows individuals to retain and continue contributing to their pension benefits regardless of changes in employment. Unlike traditional pensions tied to a specific employer, portable pensions offer the flexibility for workers to move between jobs, sectors, […]

Definition of Population Trap A population trap, also known as the “Malthusian trap,” refers to a situation where population growth outpaces agricultural production or economic development, leading to stagnation or decline in the standard of living. This concept is rooted in the theories of Thomas Malthus, an 18th-century British economist, […]

Definition of Population Census A population census is an official enumeration of the population, typically conducted by a government, that collects comprehensive data about the members of a population. This data includes information such as age, sex, occupation, education level, household composition, and other demographic characteristics. The primary aim of […]

Definition of Pooling Equilibrium Pooling equilibrium occurs in a situation where different types of participants in a market choose the same strategy or action, making it impossible to distinguish between them based on their behavior. In such an equilibrium, both high-quality and low-quality participants adopt identical signaling mechanisms, preventing the […]

Definition of Pooled Least Squares Pooled Least Squares (PLS) is a statistical method used in econometrics to estimate the parameters of a model where data from different cross-sectional units and different time periods are combined or pooled together to form a panel dataset. This technique assumes that the intercept and […]