Capital flight is a situation when businesses or investors eliminate their money from a country. This might be because of economic or political factors like…
Bureaucracy – Definition, Functions and Characteristics
Bureaucracy is a system that incorporates bureaucrats or the body of non-elected government officials and an administrative policy-making group to run a hierarchical organization or…
Economic Bubble – Definition, Types and Examples
An economic bubble is a financial situation in which the price of a good rises far above its real value. It occurs when prices exceed…
Black Economy – Definition, Types and Examples
The black economy is one of the segments of the economic activities of a country that fall outside of the commercial rules and regulations of…
Budget Deficit – Definition, Calculation and Types
A budget deficit is a situation when the expenses of a company or government spendings exceed the revenue. It occurs when expenditures surpass revenue. The…
Budget Surplus – Definition, Advantages and Disadvantages
A budget surplus is a situation in which revenue is more than spending or income is more than the expenses in a given period like…
Boom and Bust Cycle – Definition, Importance and Causes
The boom and bust cycle is a business cycle that covers alternating periods of growth and decline of an economy. In a boom period, the…
Consumer Products – Definition and 4 Types
Consumer products are the final goods that households or individuals purchase for their personal use and not for any other economic production activities. Consumer products…
Bartering – Definition, History, Benefits and Disadvantages
What is Bartering? Definition: Bartering is defined as an act of exchanging goods or/and services between two or more parties without using any monetary medium…
Absolute Advantage – Definition, Benefits and Examples
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….
