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Questions tagged [definition]

Questions about how economic terms, quantities, or ideas can be defined.

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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
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1answer
35 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 ...
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19 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 ...
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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.
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108 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 ...
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0answers
95 views

What did Adam Smith mean by skill, dexterity and judgement?

Aspiring economist major here and I began reading Smith's "Wealth of Nations" today and, even a few pages in, do not completely understand the difference between the three due to the rather opaque ...
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3answers
489 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 ...
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1answer
158 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"? ...
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2answers
128 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 ...
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63 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 ...
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1answer
188 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 ...
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1answer
152 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 ...
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2answers
65 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....
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164 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?
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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
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2answers
493 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 ...
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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 ...
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2answers
275 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 ...
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1answer
84 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 ...
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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 ...
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2answers
4k 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 ...