Archives: Terms

Definition of Per Capita Real GDP Per capita real Gross Domestic Product (GDP) is a measure that adjusts a country’s economic output, or GDP, for its population size and inflation. It’s used to gauge the average economic well-being of a country’s inhabitants. By using real GDP rather than nominal GDP, […]

Definition of Per Capita Income Per capita income is a measure that calculates the average income earned per person in a given area (city, region, country, etc.) over a specified period, usually one year. It is derived by dividing the total income of a particular area by its population. This […]

Definition of Pensionable Age Pensionable age refers to the age at which a person is eligible to start receiving retirement benefits from the government or a private pension fund. This age can vary significantly between different countries and pension systems, and it may also differ within a country based on […]

Definition of Pension Scheme A pension scheme is a type of savings plan designed to provide individuals with an income after they retire. It allows people to accumulate a portion of their earnings during their working life so that they can receive a regular income once they stop working. There […]

Definition of Pension Fund A pension fund is a type of investment pool that collects funds from individuals or organizations to finance retirement benefits. The entities that manage these funds invest in a variety of assets, including stocks, bonds, and real estate, with the goal of growing the pool of […]

Definition of Pension Crisis A pension crisis refers to a situation where public or private pension funds are insufficient to cover the promised benefits to retirees. This shortfall can result from various factors, including inadequate fund management, insufficient contributions, demographic shifts such as an aging population, and changes in the […]

Definition of Pendulum Arbitration Pendulum Arbitration, also known as Final Offer Arbitration (FOA), is a dispute resolution method where an arbitrator must choose between the final offers submitted by the parties involved, without modification. This mechanism is frequently used in labor disputes, aiming to encourage fair and reasonable final offers […]

Definition of Pecuniary Externality Pecuniary externality refers to the impact of one person’s or firm’s actions on the prices of goods and services in the market, which indirectly affects other market participants’ welfare. Unlike pure externalities, which impact others’ welfare directly without the intermediary of market prices (such as pollution […]

Definition of Peak-Load Pricing Peak-load pricing is an economic strategy used to regulate demand and supply effectively by varying prices for services or goods during different times or seasons. This practice is most commonly applied in industries with significant fluctuations in demand and a relatively fixed capacity, such as electricity, […]

Economics, a complex and multifaceted field, frequently introduces terms that can seem arcane to the uninitiated. This glossary entry aims to demystify three such terms: Deadweight Loss, Inferior Good, and Human Capital. Understanding these concepts is crucial for anyone looking to deepen their comprehension of economic mechanisms and their implications […]