Questions tagged [definition]
Questions about how economic terms, quantities, or ideas can be defined.
3
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1answer
47 views
Preference relations defined by $x_1^n + x_2^n$ converge to $\max\{x_1, x_2\}$
In the problem set 2 of Rubinsteins Microeconomics (btw is there a comparably nice written book on macroeconomics?) there is the following question:
Let $\succ_n$ be the preference relations defined ...
1
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0answers
28 views
What is the difference between personal consumption expenditure price and PCE quantity?
What is the difference between these two things? How is PCE price different from PCE quantity? Also, I am confused about the difference between PCE quantity and measure of real output. For example, ...
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0answers
20 views
Synonyms for One-to-One Matching Mechanisms
I am trying to find a more elegant usage of wording for one-to-one matching and I am need of some thoughts from others. Bilateral matching? Any help would be respected.
0
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1answer
211 views
Is there any formal definition of a relationship between resource availability and demand?
I do not have any background on economics. So my question might sound too simple and I hope it to be clear enough. I am curious about the following:
Is there any formal definition of a relationship ...
3
votes
1answer
160 views
What is the definition of distributionally neutral tax?
On the website https://www.core-econ.org/ in the book provided, there is an exercise 19.10. It asks whether poll tax is progressive, regressive or distributionally neutral. To answer this question of ...
0
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1answer
30 views
What is a digital platform?
In context of European research projects, they invest into development of digital platforms.
Here is a source to give a definition but not really, and every time people refer directly or indirectly ...
0
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1answer
51 views
When can a person be called rich?
What is the common definition for economic richness of a person?
When can you say John Doe (hypothetical name) is rich (objectively)?
Strictly economically speaking, no philosophical debate.
5
votes
2answers
335 views
What does Marx mean by “the division between capital and labor”?
I am reading an eight page piece called "Labor Alienation" by Karl Marx for my Literature class. Here's a link to it if you would like to read it:
http://www.yavanika.org/classes/reader/marx1.pdf
In ...
4
votes
3answers
2k views
What is Opportunity Cost?
Suppose you have 2 activities, A and B. Doing activity A gives a return of 100 dollars, doing activity B gives a return of -50 dollars. What would be the opportunity cost of choosing activity B? 100 ...
2
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1answer
261 views
Intuition Behind the Definition of Prudence?
I'm having trouble seeing why an agent is said to exhibit "prudence" when u'''($\cdot$) > 0. How does having a utility function with a strictly positive third derivative make an agent act "prudently"? ...
2
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2answers
295 views
Why are simple returns additive over securities?
I've found a few sources for instance this one, that makes the claim that over a portfolio, simple returns are additive. I can see why it doesn't make a difference if we use net or gross returns as ...
1
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1answer
69 views
What did Karl Marx mean by “the movement of this antithesis”?
In a lecture about ancient and modern cities, a quote came up on the slides from Karl Marx's Capital where he writes
"The foundation of every division of labor that is well developed, and brought ...
1
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1answer
248 views
Definition: What Is The “Trend Growth Rate”?
I am a bit unsure about how the "trend growth rate" is defined in macroeconomics. Is it to correct to say that if a time series $\{y_t\}$ may be decomposed as $$y_t=d_t+c_t,$$ where $d_t$ is a ...
6
votes
1answer
271 views
Understanding at a quote about externalities in law and economics
that something is an externality is partly a statement about physical reality and partly a statement about the legal system.
What does this mean? I assume the aspect of externality being a physical ...
6
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2answers
80 views
Is a country in economic downturn if its growth rate is negative, but improving?
As I understand it, economic downturn means that economic growth is significantly slowing down or entering into recession. (If anyone wants to correct me, please do so). i.e. Growth rate is decreasing....
0
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1answer
199 views
Is there a specific definition of short run and long run?
Like normally how long can be said as long run? And does specific time length of these words matters?
2
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2answers
2k views
What is the difference between gross, operating, net profit and EBIT(DA)?
What is the difference between the following accounting measures, if any?
Gross profit
Operating profit
Net profit/income
EBIT
EBITDA
2
votes
2answers
867 views
Can You Help Me Understand this Definition of Economic Efficiency
Economic Efficiency:
"A broad term that implies an economic state in which every resource is optimally allocated to serve each person in the best way while minimizing waste and inefficiency. "
And ...
2
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0answers
21 views
What's the difference (if any) between “fixed assets” and “fixed capital” in the UN SNA?
From my reading of the UN System of National Accounts (2008 update), "fixed assets" and "fixed capital" seem to be completely synonymous. Yet strangely there seem to be these two different terms. So ...
1
vote
2answers
539 views
What is a merit good?
I just came across the concepts of merit and demerit goods for the first time, in the Cambridge A-level economics syllabus. I wasn't sure what they were.
Is a merit good simply a good that has ...
3
votes
1answer
105 views
Definition: Extractive Goods (Comtrades HS-Categorization)
I'm currently writing a paper on China in Africa and I'd like to compare Africas Exports to China with its exports to Europe and the USA. More specifically I'd like to find out if the Exports to China ...
4
votes
1answer
3k views
Economies of Scale vs Learning Curve
Is there a difference between the meanings of the terms "economies of scale" and "learning curve"?
The term "learning curve" is being used by cost estimators and refers (more or less) to the idea ...
8
votes
2answers
5k views
Is 'full employment' synonymous with 'the natural rate of unemployment'?
Is the phrase 'full employment' synonymous with the phrase 'the natural rate of unemployment'? Parkin, et al. (2010) seem to use these two terms interchangably in chapter 20, but looking up these two ...
