ECONOMICS

Definition: The black economy, also known as the informal economy, is the portion of an economy that is not recorded officially. It includes activities such as barter, cash-based transactions, and activities that are not reported to authorities, such as drug trafficking, prostitution, and the sale of counterfeit goods. Characteristics: Causes: Impact: Examples: Conclusion: The black […]

Positive economics is a branch of economics that seeks to understand the economic behavior of individuals, firms, and nations through empirical analysis and mathematical modeling. It focuses on explaining and forecasting economic phenomena using scientific methods. Key concepts in positive economics: Examples of positive economics: Positive economics is used in: Key differences between positive and […]

The law of one price is a concept in economics that states that the price of a good or service is the same in all markets at a given point in time. Explanation: Examples: Exceptions: There are some exceptions to the law of one price. These include: Conclusion: The law of one price is a […]

Seigniorage Seigniorage is a fee paid to a monarch or other sovereign as a hereditary right or privilege. It is a tax paid typically in lieu of a feudal debt to a lord. Etymology: The word “seigniorage” derives from the Old French word “seignorie,” which means “Lord’s possession.” History: Seigniorage was a common practice in […]

Mass Production Mass production is a manufacturing process that involves producing large quantities of standardized products in a relatively short time frame. It is characterized by high volume, low cost, and a focus on standardized products. Key Principles of Mass Production: Standardization: Products are designed to be as standardized as possible, with minimal variations. Interchangeable […]

The business cycle is a long-term fluctuations of economic activity characterized by periods of growth, contraction, and recovery. It is a series of alternating periods of economic expansion and contraction, generally occurring over a period of five to ten years. Key phases of the business cycle: 1. Expansion:– characterized by growth in GDP, employment, and […]

A scalar chain is a sequence of scalar values arranged in a particular order. Each scalar value is associated with a specific point on a chain and is represented by a scalar variable. The scalar variables are related to each other by a scalar relationship. Key Features of Scalar Chains: Sequenced: Scalar values are arranged […]

Definition: Devaluation is the process of reducing the value of something, typically a currency, a security, or a commodity. It can occur through various factors, including economic instability, rising inflation, and changes in supply and demand. Causes: Economic instability: When an economy is experiencing economic instability, such as high inflation or deflation, the value of […]

Marxism is a theory of social organization based on the principles of historical materialism and the theory of the proletariat. It proposes that the history of human societies is a struggle between two fundamental classes: the proletariat (the working class) and the bourgeoisie (the owning class). Key principles of Marxism: Historical materialism: Marx believed that […]

Key Performance Indicators (KPIs) A key performance indicator (KPI) is a quantifiable measure that track progress towards achieving a specific goal or objective. KPIs are used to monitor and evaluate performance across various areas of a business, including: Types of KPIs: Financial: Revenue, profitability, asset utilization, market share Operational: Customer satisfaction, product quality, efficiency, on-time […]