What Is Absolute Advantage? Definition: Absolute advantage is defined as the capacity of a producer to produce a larger quantity of commodities compared to other…
Behavioral Economics – Overview and Applications
What is Behavioral Economics? Definition: Behavioral Economics is defined as the study of how psychology is related to the economic decision-making processes of institutions or…
Hawthorne Effect – Definition, History and Experiment Case
The Hawthorne effect talks about the deliberate change and improvement in the behavior of human subjects that are part of an experiment conducted for the…
Balance of Trade (BOT) – Definition, Formula and Examples
Definition: Balance of trade is defined as the measure of the difference between the monetary value of the exports and imports of a country for…
Emerging Market Economy – Definition and Characteristics
The emerging market economy is referred to as the economy of a developing nation that has low to middle per capita income and is working…
Prospect Theory – Overview, Key Concepts and Applications
Prospect theory is a psychology hypothesis that portrays how individuals settle on choices when given choices or alternatives that include likelihood, risk, vulnerability, and uncertainty….
Economic Development – Definition, Meaning, Types and Features
What is Economic Development? Economic development is a process through which the overall education, well-being, health, income and living standards of the general population improves….
Sharing Economy and Rental Economy
In this article, we discuss sharing economy and rental economy. The sharing economy is a practice of offering, acquiring, or sharing access to services or…
Labor Market | Definition, Types, Characteristics, and Components
Definition: A Labor market is a marketplace where individuals offer their expertise, talent, skill, and know-how to the future employer in exchange for monetary compensation…
Scalability | Characteristics and Features of a Scalable Business
Scalability is the ability to be changed, increased, or expanded in size, efficiency, or scale at the time of greater operational demands. Scalability can be…
Capitalism – Principles, History and Characteristics
Capitalism is defined as an economic system of a country where the economy of the country is controlled by private companies instead of people. They…
What is Demand? Definition, Meaning and Determinants
Demand is one of the determining factors of a business as it can affect the expansion of a business and economic growth. Demand is a…
Meaning and Study of 12 Causes of Inflation
Inflation is one term that we come across very often. There are different kinds of increase, such as- cost-push inflation, repressed inflation, open inflation, supply-side…
Frictional Unemployment – Definition, Causes, Effects and Reduction
Unemployment word has a negative connotation. The high unemployment rate implies a weaker economy. However, frictional unemployment is different from other types of unemployment, and…
Income Elasticity – Concept, Examples, Types and Benefits
In case you want to measure the relationship between the sales of any product or service and variations in consumer income, then Income Elasticity will…
Underutilisation Definition, Meaning and Factors
When full utilisation of the potential/capacity of the workforce and resources essential for optimized growth rate is not being practiced, it is termed as underutilisation….
Marginal Analysis Definition – Formula and Applications
Marginal analysis is an essential tool in marketing to decide the next step in the market. It helps the managerial heads to choose for any…
Purchasing Power – Definition, Meaning and Influencing Factors
Definition: Purchasing power is =the financial ability of an individual, or entity to purchase/buy any products or services. The purchasing power of the associated people…
8 Characteristics Of Socialism – Advantages and Disadvantages
Socialism is a political as well as economic system in which the distribution and production are owned by society. This is in opposition to capitalism,…
Top 5 Characteristics of Demand
Supply and demand are two essential terms frequently used in the business world. Demand is one of the most important factors in deciding the success…
12 Characteristics of Capitalism Explained
Capitalism is an economic system that is classified by private ownership of most of the financial decisions rather than government decisions. In capitalism, private entities…
Top 6 Barriers to Trade within the Country Explained
For the growth and development of any nation, it is very important for the free movement of goods from one city to another or one…
Arbitrage Price Theory: Importance, Examples, Benefits, & How to use it
Have you ever heard of the term Arbitrage Pricing Theory? It is one of the most common mechanisms which is used by the investors to…
26 Characteristics Of Democracy
Democracy is the form of government in which the people of a nation have the power to choose their representatives. So, the characteristics of Democracy…
Demand Management – Importance, Components and Benefits
Demand Management is gauging the demand for a product or service in the future and planning the manufacturing so there wouldn’t be supply and demand…
Economic Integration: Meaning, Types, & Benefits of Economic Integration
The industry works at a different pace in the present times, and there are certain techniques which can be used only in case there is…
Free Trade Zones: Meaning, and Top 5 Benefits of Free Trade Zones
Have you heard about Free Trade Zone? Intrigued about their role in business management? Then In this post, we will learn about the Free Trade…
10 Characteristics Of Perfect Competition
The other name for perfect competition is “Pure Market.” Therefore, before you start reading this article. Let me tell you that perfect competition is a…
12 Characteristics of Monopolistic competition
Monopolistic competition is also called imperfect competition. Monopolistic competition is neither perfect competition nor monopoly competition. However, it has the features of both types of…
14 Characteristics of Developed Country
An improved economy is one of the first Characteristics of Developed Country These countries have a high level of economic growth as well as security….
The 11 Features of Capitalism: Its Advantages and Disadvantages
Capitalism is an economic system where individuals and firms have the right to own properties like farms and factories etc. privately and they can use…
16 Important Features of Democracy
Democracy can be defined as a system where the power of voting elects the system of government by the people. People choose their representative by…
The Economic Cycle: Stages, Causes, Examples, and Features Explained
The upward or downward movement of GDP or gross domestic product around a long duration trend of growth is called an economic cycle. It is…
Mixed Economies: Meaning, Types, Advantages, and Disadvantages
A mixed economy is that economy which includes the aspects of more than one economic system. A mixed economy contains both government-owned and privately-owned enterprises…
Monopolistic Competition: Meaning and 10 Important Features of Monopoly
It is difficult to define the words monopoly and competition separately as both are quite common and frequently used terms in the business world. However,…
Market Failure – Definition, Types and Causes
What is Market Failure? Market failure is a situation that occurs when the market doesn’t allocate resources efficiently. This can happen for a variety of…
Difference between Depression and Recession – Meaning and Impact
An economic cycle refers to the ups and downs in commercial activities such as investment, saving, employment, income, etc. over a certain period of time….
What is Economic Environment? 10 Factors affecting it
The economic environment can be defined as the combination of all the economic factors such as, inflation, income, employment rate, etc. which affect the buying…
Marginal Benefit: Things to consider in Marginal Benefit, and Examples
Marginal benefit in simple terms is defined as the uppermost amount a customer is willing to shell out for an additional service or product. It…
Economic Efficiency: Meaning, Types and Examples Explained
Economic efficiency is defined as a state where all the goods are distributed in such a way that most economic output is achieved and waste…
