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It seems economic models do not explicitly include ownership of the firm (not of the physical capital, an input used to produce). Many economic model do have profits. We're just more careful about what we call it. See the definition of "economic profit." When you think of profits, you need to ask yourself if the money you are making is simply a fair ...


9

In Labor Economics, "Extensive margin" refers to "how many people work". "Intensive margin" refers to "how much a given number of people work, on average". To copy from a freely available recent study by Blundell, Bozio and Laroque 2011, "...we split the overall level of work activity into the number of individuals in work and the intensity of work ...


7

Greg Mankiw's answer: plus extra characters


6

"Intelligent money" or "smart money" is not an economic term per se, but a finance term. It is colloquially used in the finance industry to describe the collective group of individuals who are paid to actively manage funds, rather than passively manage funds. Active management differs from passive management in that the former chooses how to invest money ...


5

Probably, there's no clear-cut definition, however, there's an article of Paul Graham called Startup=Growth which represents the opinion many agree upon: startup is a company that plans to grow fast (... and scale). A quote: A startup is a company designed to grow fast. Being newly founded does not in itself make a company a startup. Nor is it ...


5

I think you are right to say that an economy is always a subsystem of a larger ecosystem, but it needs not always be modeled as such. It may be interesting to have a precise and elaborate model of the solar system taken in isolation, independently of its interactions with the rest of the galaxy, other galaxies, etc. In very much the same way, there are many ...


3

Accounting (after tax) profits are net of depreciation and of interest paid on loans, or of any capital/equipment actually rented by the firm. So conceptually, they map to "net returns on own capital". Not necessarily "equilibrium" or "competitive", because such characterizations are some steps further down the modelling road, in making assumptions on the ...


3

Cyclical unemployment is named after the business cycle, as in the part of unemployment that varies with the business cycle. Structures are things that last a long time, so structural unemployment is the part of unemployment that is driven by features of the economy, like structures, that last a long time. But as you intuit, surely the length, frequency, ...


3

You may be seeing the same thing that I'm seeing (on social media), and I've added the links below as evidence of this, more often than not, they don't define what they mean (in this case, they do - for instance, you'll see "the smart money is moving against the USD" etc). This term is very common on social media stock discussions. StockTwit example ...


3

I believe the single most commonly used metric for contagion is a sharp increase in the correlation of returns in various countries, either within a country (e.g., the correlation of daily returns in the markets for stocks, bonds, and commodities) or across countries (e.g, the correlation of daily returns in the stock markets in Europe, North and South ...


3

Consider the following example with a Cobb-Douglas production function having total factor productivity $A_t$, labor $L_t$, capital $K_t$, and effort $e_t$: $$ Y_t = A_t K_t^{\alpha} (e_tL_t)^{(1-\alpha)}$$ The intensive margin regards the level of effort $e_t$ (think intensity), and the extensive margin the quantity of labor supplied $L_t$. In a less ...


2

Ecological economics considers the economy as a subsystem of the ecosystem. Why is this not standard? It is not "standard" because economy and ecology are two fundamentally different things. We cannot really create or control an ecological system to the same extent we can create and control an economy. We can however create an economy where none existed ...


2

The definition from about.com is what you are looking for. Feasible means that total consumption of each good does not exceed total endowment (initial holding) of that good in the economy. Terms Walrasian and Competitive equilibrium can be used interchangeably here and Walrasian auction is entirely different concept.


2

At the abstract level, this phenomenon is covered by the concept of "Technological Change", which, in Economics, does not have a strict/narrow "Engineering" interpretation: here, "Technology" is not only "how things are done" but also "how things are organized", and includes also new business models like the one you mentioned (see also this post). So the ...


2

No. In fact, they mean quite the opposite. Infinitely elastic, means the elasticity is infinity. Perfectly Inelastic means not elastic, i.e. the elasticity is 0. Ineslastic means the elasticity is very low, so between 0 and 1. This means there is "underreaction" (less than proportional). So if something is infinitely elastic there will be an extremely large ...


2

What you describe is called "decreasing marginal utility of income". Marginal utility is just an economist's way of saying the benefit you got out of the last unit of something, and decreasing because we think this might be lower at higher levels of income.


2

One of the original statements of this kind were Kaldor's Stylized Facts on growth, Kaldor's Facts, the most important of which are that: Labor and capital receive approximately constant share of output (about 0.6 for labor and 0.4 for capital) The rate of growth of output per worker is roughly constant (about 2%) The rate of return on investment is roughly ...


2

You are using it correctly. It means the processes and protocols created by banks or those imposed to them by authorities. If the bank also has some quality certificate, like iSOs, them this imposes new compliance costs and processes.


2

I'm not aware of any such "technical" term in economics. Goods and services are referred to as goods and services in economics, period. From the example you give in the comments, it looks like you're trying to write an introduction/review of a business. In that case, not using a technical jargon, be it existing or not, would probably be better anyways. By ...


2

The term is "volume discounting", where a supplier offers/accepts a lower unit price in exchange for higher volume of business. Here, it is the firm/buyer that asks for this volume discount, rather than the suppliers/users that offer it as a commercial policy. Note that when the buyer demands a volume discount (when it sets $x$) some conditions must be ...


2

The trouble with economics is that many of its technical terms either have broader or narrower meaning in ordinary language. "Good" is one such example. A good is any thing that can be used to satisfy a human want, provided that the person who wants to use this good can (i) control it, and (ii) believes that she can use it to satisfy her wants. This is a ...


1

The first point is that this is a flow statistic: it is the annual excess of income over consumption, in contrast to level statistics such as gross national debt which are largely accumulations of past flows. As what gross national saving is for: it funds investment, which affects future income and thus future consumption. Indeed, one of the tautologies of ...


1

Elasticity is a general concept which basically means how sensitive one quantity is with respect to some other quantity. In economics we use concepts like price elasticity of demand, elasticity of substitution etc. A high value of elasticity say for example price elasticity of demand means that the quantity demanded is too much sensitive to the price. This ...


1

I might be late to the party. A Start Up is a stage where company is still not so clear about so many things, viz Models to profit Clear plan about the product Clear plan about their target/market In simple terms they are figuring out those and many such things. Once they are done with clear product, cash flow model and market they come out of Start Up ...


1

There is no clear separation between what is and what is not a start-up. It's a non-technical term, and so has all the usual blurriness and context-sensitivity that goes along with that. A start-up is usually taken to have come from nothing, with a new product or service (or new variation of existing ones). Its founders typically put in all the equity ...


1

If you were to read only introductory book in econonomics: Economics: The User's Guide by Ha-Joon Chang. It explains all basics concepts in economics, and the differences between the main school of thoughts. It is quite easy to read, it is not a textbook. For an overview of financial markets: Capital Ideas, and Capital Ideas Evolving by Peter L. Bernstein ...


1

I want to take Alecos' answer, which seems to be more explicit about the issue at hand, and provide a formalisation, which to me provides a better picture of why neoclassical models do not usually allow for accounting profits. Imagine an economy, where a government had issue a bond which pays interest rate of $r$ per period. There is no inflation, so all is ...


1

I assume that this is about Macroeconomics in particular (you might want to add that tag). Often we don't need profits The interaction of firm profits is often irrelevant. It is well summarized under capital rents. Having firm profits does not add any insights to, say, Solow's growth model or the standard Neoclassical model. Operative profits vs Life time ...


1

Yes, Walrasian equilibrium and competitive equilibrium are used interchangably. Both refer to a set of allocations and prices such that Taking prices as given, every agent weakly prefers their allocation to any other possible allocation they might receive (i.e., in an indivisible goods market, they do not want to buy some goods that they are not ...


1

Walrasrian Equilibrium is just basically the same as Market Equilibrium or Competitive Equilibrium. According to the books I am reading, market clears in equilibrium; demand = initial endowment.


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