Questions tagged [economic-terms]

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Is there a term that describes the idea "I've already spent this much, I might as well pay a little more to get what I want"?

I came across this idea while looking to buy a house and I wondered if there was a term for it. The initial purchase options have a linear cost to value relationship. However, I'm tempted to make a ...
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Can the ideas of capitalism and communism be well defined?

I have read several reddit threads where it is said that modern economists don't bother with ideas like capitalsm and communism (eg: 1 ,2). However when one looks in a dictionary they get the ...
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Name for the maximum willingness to pay of other market participants

Suppose there is an auction for a unique good, say an original piece of artwork. There are many potential buyers, including buyer X. Each buyer has a unique reserve price, or willingness to pay. If ...
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Differences between stocks and bonds

I just learned what bonds are. They seem similar to stocks, but different in key ways. I'd like to know all the ways. I'll list the differences that I currently believe they have. The only reason I'm ...
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3 votes
2 answers
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Supply affects demand, but not through the prices

Microeconomic theory describes supply and demand in a free market as two functions that are related only through the price: the produces decide how much to supply given the price, and the consumers ...
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13 votes
3 answers
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Economics term for those who benefit even though they didn't contribute

I believe there's an economics term that describes people who refuse to participate in a community project even though they receive the same benefit from the project. For example, the village needs a ...
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What is the term for the means of conducting international financial transactions?

I'm looking for a term (say "X") that describes a general category of process. Over time, the details of the process or even the process it self changes, but they would all still fall under ...
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Is there a relation between market capitalization and revenues?

The company 3M has at this moment an anual revenue of \$33 billion and a market capitalization of \$102 billion. Therefore market cap is 3 times higher than revenues. For Chevron the rate si 2.3. For ...
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Is there a term to refer to the point at which an actor updates a "price"?

Examples of what I mean: A company increases the price of their product to match increasing COGS (e.g. a restaurant increasing their prices because the cost of ingredients has increased significantly)...
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Is normative economic planning value-neutral or value-based?

I'm really confused with the meaning of the terms 'normative planning' and 'system planning'. Investopedia says "normative economics is subjective and value-based". On the other hand, many ...
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1 vote
2 answers
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What is the proper way to read and/or express "price elasticity of demand"?

The natural language phrase such as square root of x for a function $Sqrt(x)$ precedes the input with the word of. When we talk of a bivariate function, such as $x/y$ aka $Ratio(x,y)$, we say simply ...
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Can we 'predict' the delta of a stock? The delta of a stock is $\pm 1$ right? [closed]

A stock is like a living organism. A sparrow, say. And we are able to create an emergent-based abstraction of that sparrow, which closely approximates the sparrow itself, accounting for migration ...
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Clarifying the definition of "event study"?

I am quite confused about the definition of an event study. From my understanding, an "event study" is when we examine the impact of an event (e.g., a law) on a dependent variable (e.g., ...
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3 votes
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Why does economics use "rent" to mean income from a factor of production that exceeds the minimum amount necessary to beget that factor of production? [closed]

This economics meaning of "rent" is confusing to laypeople because it differs from the lay meaning of "rent" (tenant's regular payment to a landlord for the use of property or land)...
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-3 votes
1 answer
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Description of variables for a credit scoring model [closed]

I'm working with a credit scoring model. I have a dataset that includes 42 variables. I don't know what are mean 6 variables: remaining_mat live_status repaid_status months_since_2mia avg_mia_6m ...
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Money invested vs increased valuation

I am looking for a name and historical data for a concept. I think it is easiest to explain by example. Consider stock in XYZ Inc worth \$10 per share and there are 10 shares, so the market cap is \$...
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1 vote
1 answer
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Difference between yield curve and term structure of interest rate

Can somebody please explain me the difference between yield curve and term structure of interest rate? Thanks
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Willingness to accept is different from willingness to pay - is there a name for this

Given the situation below, can someone help me identify/name the logical phenomenon? So I own a laptop that I don’t use…. Someone has offered me £1000 dollars for it but I decided not to sell it. I ...
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2 votes
1 answer
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What type of an income distribution would allow the fastest growth and/or highest sustainability

Is there a theoretical framework to explore the question of what could be the ideal distribution of income among a population that yields growth and/or sustainability? Let $P(m)$ be a density function ...
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Why is basis point defined as "1/100 of a percent"?

Shouldn't it be defined as "1/100 of a percentage point"? If you take "1/100 of a percent" verbatim, it could mean the following : If 1% increases to 1.01%, that is a 1% increase, ...
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Is Adam Smith's "stock" an archaic version of "capital"?

In The Wealth of Nations, Adam Smith uses the word "stock" many times, but not with the meaning we ascribe to it today (supply of an asset, inventory). I take it that he refers to capital, ...
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-1 votes
1 answer
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What does Mohamed El-Erian mean by "recovery value of assets"?

Pls see the emboldened phrase. Investors must prepare portfolios for Covid-19 debt crunch | Financial Times The financial stress caused by Covid-19 is far from over. Investors should brace for non-...
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2 answers
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Term for when using a single number is used instead of a function?

A cost per unit could be 20, but it could also be 20 + 2q (in the cast of the latter, the cost per unit is a function whose ...
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Is the income derived from owning a live animal profit or rent?

Natural resources are considered non-produced and yield rents, including land and the fruits of the land, e.g. trees. Does this extend to live animals? Or are live animals considered “produced” goods (...
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"manufacturing sector" vs. "manufacturing industries"

From a tutorial The main sectors of the economy are: Primary sector, Secondary / manufacturing sector, Service / ‘tertiary’ sector, Quaternary sector which uses the word "sector", so does ...
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Terminology: _______ financing (meaning financed through the private sector)

I have encountered several similar terms on this notion, including: private sector financing (very clear, but a bit wordy) market financing (somewhat clear, usage seems infrequent) alternative ...
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4 votes
1 answer
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What does the adjective "structural" mean in "structural reforms" or "structural effects"?

Economists frequently speak of structural reforms and structural effects. For example, Manmohan Singh (1992): The economic crisis was used as an opportunity to implement basic structural reforms ...
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0 votes
1 answer
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Use of the term "effective" in economics

I've seen the terms "effective demand" and "effective wages" bandied about in papers, but I'm not sure what these refer to. Please could someone explain both these concepts? Thanks!
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What's the opposite of a Pareto improvement called?

Wikipedia defines a Pareto Improvement, "given a certain initial allocation of goods among a set of individuals" as: a change to a different allocation that makes at least one individual or ...
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0 votes
1 answer
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What does 'currency convertibility' mean?

As a student with almost zero background in economics, I've been struggling to comprehend the notion of the currency convertibility. Most of the definitons I've found online talk about the ease with ...
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1 answer
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In the context of banking, how (if at all) do the terms 'capital', 'net worth', and 'equity' differ?

In banking, are the three terms capital, net worth, and equity simply identical and exact synonyms? If not, how do they differ? (Aside: And what about in other contexts? For example, does the same ...
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1 vote
2 answers
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Is there a super term for goods/products and services?

A business can sell "goods" (/"products") and "services". Is there a term that encompasses both of these? Various words may fit (e.g. "offering"), but I'm looking for the technical term, if there is ...
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1 vote
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Correct scientific term to describe this system property

I am from a non-economic background so please bare with me. I have a crowdsourcing system that enables businesses to request individuals to perform certain tasks in exchange for a monetary payment. ...
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4 votes
1 answer
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What is the "gross national saving" for?

I don't understand what the term Gross National Saving is for. According to the world factbook, it represents the following: Gross national saving is derived by ...
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1 answer
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Is there an economic term that means the same thing as "personal inflation"

I don't have anything even close to what would be considered formal education in terms of economics, so the term "personal inflation," is just something I completely made up. What I mean by personal ...
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6 votes
1 answer
604 views

Great "constants" of economics

Question What are the great "constants" of economics? Background In his Structural Slumps (Chapter 3, p.20), Phelps refers to the great "constants" of economics. He explains that the natural ...
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2 votes
1 answer
34 views

What is banking compliance

I'm not sure if I'm using the term correctly but there's something that's referred to as compliance in banking. Am I correct to understand that it's the process of obeying the laws and regulatory ...
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1 vote
2 answers
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Elasticity and its types

Does 'infinitely elastic' and 'inelastic' pertain to same meaning? What is the difference between them? Please explain in brief.
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4 votes
3 answers
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What is the difference between a Start-Up and a small company which is not a Start-Up?

What exactly makes a small and youg company a "Start-Up", among other small and young companies which are not necessarly start-ups?
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What term/theory describes more efficient utilization of a resource?

I may be asking the wrong question here, but I wonder if there is a term/theory that describes/studies the evolution of an economy that continually improves the utilization and allocation of certain ...
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1 answer
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Why was 'structural' chosen to mean 'structural unemployment'?

Source: Economics (3 ed, 2014) by N Gregory Mankiw, Mark P. Taylor structural unemployment [=] unemployment that results because the number of jobs available in some labour markets is ...
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3 votes
1 answer
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Introductory or Primer text on Economics?

I've been meaning to learn more about economics, and am looking for an introductory text or a primer on the topic. I've already taken a subject on this back in high school, but I guess what I'm ...
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3 answers
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What does 'intelligent money' mean?

Is 'intelligent money' or 'smart money' an economic term, and if yes, what does it refer to?
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Why (neoclassical) economic models have no profits, unlike the real world?

Consider a simple neoclassical model of an economy populated by firms with a constant returns to scale production function, using homogeneous labour and capital. Firms are equal, and are price takers ...
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2 votes
3 answers
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competitive equilibrium, Walrasian equilibrium, Walrasian auction

There are several sellers holding some indivisible goods, and several potential buyers with different valuations for these goods. I need to calculate the Walrasian equilibrium in this scenario, but ...
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15 votes
3 answers
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What is the difference between intensive margin and extensive margin in labor economics?

What is the difference between intensive margin and extensive margin in labor economics, or general RBC model, where we talk about labor-hours supplied changing with extensive margin or intensive ...
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2 answers
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Why are ecology and economics seemingly disjunct topics?

The words ecology and economy are very similar. Ecology derives from the words οἶκος + λογία, i.e. the study of the house/household. Economy derives from the words οἶκος + νόμος, i.e. the laws of ...
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6 votes
2 answers
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How Do Economists Quantify Contagion?

In the context of international financial crises, what mathematical methods have Economists employed in order to quantify financial contagion? Note: For a working definition of contagion I'll use the ...
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