ECONOMY

Frictional unemployment, also known as churning unemployment, is the type of unemployment that results from the mismatch between the skills and abilities of job seekers and the skills and requirements of available jobs. It occurs when there are more job seekers than available jobs, and those job seekers are not able to find jobs that […]

An indifference curve is a graphical representation that plots two goods or services at the points where the consumer is indifferent between them. It is a curve that shows the relationship between two goods that a consumer is willing to buy at the same price and quantity. Indifference curves are typically downward sloping and convex […]

A price taker is a firm that is so small that it has little or no influence on the market price of its product. This is because the firm’s demand curve is perfectly elastic, meaning that it can sell all of its output at the market price. Characteristics of a price taker: Examples of price […]

Free enterprise is a system of economic activity in which private ownership and individual initiative are the primary drivers of production, distribution, and exchange of goods and services. This system is characterized by the following principles: 1. Private Ownership:– property rights are privately owned, meaning that individuals have the right to own and control their […]

The balance of payments account is a statement that summarizes all foreign exchange transactions made by a country during a particular period of time. It includes all payments and receipts from foreign trade, investment, and other sources. The balance of payments account helps maintain the stability of a country’s currency. Components of the Balance of […]

Paid-up capital is the portion of the authorized share capital that has been paid for by shareholders at the time of subscription or purchase. It is also referred to as the contributed capital and represents the amount paid in cash or other assets for the shares. Formula: Paid-up capital = Issued shares × par value […]