• The term money refers to assets that people regularlyuse to buy goods and services. • Money serves three functions. As a medium of exchange,it is the item used to make transactions. As aunit of account, it provides the way in which pricesand other economic values are recorded. As...
The government’s short-term strategy is simply survival… More challenging for Sharaa and his interim government will be how to address a bloated public sector. Under Assad, mismanagement and corruption produced payrolls padded with overstaffing and even “ghost employees,” who took salaries but ...
Q.441. What is the economist definition of the term "wealth"? All of the different stores of value in an economy(88,2,2) Q.442. Define liquidity A measure of the ease with which an asset can be converted into the economy's medium of exchange(88,2,4) Q.443. Define commodity money...
Amid all the optimism regarding a soft landing for the economy, the Inside Economics team considers what bothers them most about the economy’s near-term prospects. Cris focuses on GDP vs GDI, Marisa on the soft global economy, and Mark on the internals of the labor market. They remain upb...
It’s no accident that the term “free market” contains the adjective “free”. The elements of a free market which enable it to produce a stream of quality improvements and cost reductions include the following freedoms: The freedom for companies to pursue profits – under the recognition tha...
Chapter 7: Game Theory I7.1 Why Game Theory?Payoff interdependency: the optimal choice by an agent depends on the actions of othersIn contrast withdecision-theoretic situation: no recognized payoff interdependencyE.g. in decision-theoretic: gas & electricity pricing; Windows’ operating system; ...
The term gambler's fallacy refers to the mistaken belief held by some people that independent events are interrelated. For example, a roulette or lottery player may not choose to bet on a number that came up in the previous round. Even though people are usually aware that successive draws of...
Reaganomics is a term for President Ronald Reagan's economic policies that focused ontax cutsfor the wealthy, believing they would lead to savings and higher investments, producing economic benefits that would trickle down to the entire economy. Reaganomics also focused on increased military spending ...
Like prices, many other factors that affect the economy or finance are continuously in flux. Independent studies or tests may allow for the use of the ceteris paribus principle. But in reality, with something like thestock market, one can never assume "all other things being equal." There ar...
On the other hand, the term “quantity demanded” refers to a point along the horizontal axis. Changes in the quantity demanded strictly reflect changes in the price, without implying any change in the pattern of consumer preferences.3