ECONOMICS

Social Economics Social economics is a branch of economics that examines the relationship between economic behavior and social outcomes. It seeks to understand how economic factors influence social processes and how social factors shape economic outcomes. Key Concepts: 1. Social Choice: The study of collective decision-making processes, such as voting, taxation, and regulation. 2. Labor […]

Definition: Broad money is a measure of the money supply that includes all forms of money that are in circulation, regardless of their legal tender status. It includes: Currency: Legal tender issued by a central bank. Deposits: Money stored in banks and other financial institutions. Money market funds: Instruments that are traded in the money […]

The Silk Route The Silk Route, also known as the Silk Road, was a network of trade routes that connected China to the Mediterranean world from the 2nd millennium BC to the 15th century AD. It played a pivotal role in facilitating trade, cultural exchange, and the spread of ideas between the East and West. […]

Regression is a type of supervised learning algorithm that models the relationship between input variables (features) and their corresponding outputs. It is a linear modeling technique that estimates the values of a continuous variable based on the values of other variables. Types of Regression: Ordinary Least Squares (OLS): The most common type of regression, where […]

Mathematical economics is a subfield of economics that focuses on applying mathematical techniques to analyze economic models and problems. It draws on tools from various disciplines, including: Key concepts: Modeling: Mathematical economists create mathematical models that describe economic behavior, often using tools like differential equations, linear algebra, game theory, and statistics. Analysis: These models are […]

Elasticity of Demand The elasticity of demand measures the responsiveness of quantity demanded to changes in the price of a good. It is a measure of the degree to which the quantity demanded changes in response to changes in the price. Formula: Elasticity of Demand (e) = % Change in Quantity Demanded / % Change […]

Balance of Payments (BoP) The balance of payments (BoP) is an accounting statement that summarizes all economic flows between a country and the rest of the world in a particular period. It includes all payments and receipts for goods, services, investment, and transfers. Components of BoP: 1. Current Account:– Exports and imports of goods and […]

Definition: A free market is an economic system in which prices are determined by supply and demand, rather than by a central authority. In a free market, there are no fixed prices, instead, prices fluctuate based on the interplay of supply and demand. Key Features of a Free Market: 1. Private Ownership: Ownership and production […]

The GDP growth rate is a key indicator of a country’s economic growth and is measured by the percentage change in a country’s GDP between two consecutive quarters. A country’s GDP growth rate is important because it provides insights into the overall strength of its economy relative to other countries and serves as a gauge […]

Definition: Money laundering is the process of disguising the proceeds of illegal activities, such as drug trafficking, corruption, and fraud, to make them appear legitimate. It involves a series of complex and clandestine transactions designed to conceal the true origin and ownership of the money. Types of Money Laundering: Structuring: Breaking down large amounts of […]