ECONOMY

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 […]