ECONOMY

Market penetration is a marketing strategy that focuses on increasing the market share of a company’s products or services in a particular market. This is achieved by targeting existing customers and potential customers within that market. Key elements of market penetration: 1. Customer targeting: Identifying and understanding the specific customer segments within the target market. […]

Definition: The law of supply is a fundamental economic principle that states that the quantity of a good or service that producers are willing to offer for sale at a given price will increase as the price increases, and decrease as the price decreases. Key Principles: Relationship: The law of supply is illustrated by a […]

The GDP deflator is a measure of inflation that measures the overall change in prices in a country’s economy. It is calculated by dividing GDP price index by GDP deflator. The GDP deflator is a key indicator of inflation and is used by central banks to control inflation. The GDP deflator is important because it […]

Fiat money is a type of money that is not backed by a physical commodity, such as gold or silver. Instead, it is backed by the government’s authority and its promise to redeem it for its face value. Fiat money is also commonly known as “paper money.” Examples of Fiat Money: Characteristics of Fiat Money: […]

Definition: The financial sector is a group of industries that provide financial services to individuals and businesses. It includes a wide range of institutions, such as banks, credit unions, insurance companies, and investment firms. Major Components: Key Industry Players: Recent Trends: Future Outlook: The financial sector is expected to continue to grow, driven by factors […]

A Giffen good is a type of good that exhibits the paradoxical behavior of increasing in demand when its price increases. This seemingly paradoxical behavior occurs because the good is so cheap that even a proportionally large increase in its price does not significantly impact its affordability for the majority of consumers. Instead, the increase […]

Purchasing Power Parity (PPP) is a macroeconomic theory that relates the prices of goods and services in different countries to their relative purchasing power parity. Key Concepts: Assumptions: Evidence: Implications: Criticisms: Conclusion: PPP is a powerful macroeconomic theory that provides insights into the relationship between prices and purchasing power parity. While it is not a […]