What does the word income mean? Income ismoney that a person or a business receives in return for working, providing a product or service, or investing capital. A person's income may also derive from a pension, a government benefit, or a gift. To a government tax agency, income may be...
What do you mean by marginal utility in economics? Explain what it means: Microeconomics is part of economics. How can we define "production" in economics? Does an economic model describe reality exactly? Explain. In economic terms, define what money is. ...
Define microeconomics and macroeconomics. How best do you define economics? How can we define "production" in economics? Relating to economics, define socialism. What does the term "real" mean in economics? Define "economics" and "economy" while being clear to differentiate between the two. ...
firm, or individual level. Microeconomics says that consumers will tend to buy fewer cars than before if a manufacturer raises the prices of cars. The price of copper increases if a major copper mine collapses in South America because the supply is restricted. ...
WHEN DOES CETERIS PARIBUS APPLY? Ceteris paribus is applied when we look at how changes in price affect demand or supply, but ceteris paribus can also be applied more generally. In the real world, demand and supply depend on more factors than just price. For example, a consumer’s demand ...
Perfect competition is a set of assumptions inmicroeconomicsused to make the theories of consumer and producer behavior, supply and demand, and market price determination mathematically tractable so that they can be precisely defined and described. Inwelfare economicsand applied economics for public polic...
Business Economics Marginal cost What does increasing marginal opportunity costs mean?Question:What does increasing marginal opportunity costs mean?ValueThe value of one good that is sacrificed to achieve the value of another good is called opportunity or alternative cost. It is also described as ...
What does the term Open Market Operation mean? What is its intended effect on the money supply? In economic terms, what is it called when you have a public-owned asset, such as an airport, treat it like a monopoly, and charge the public a premium to use it, even though the publ...
In microeconomics, the principle of income elasticity of demand, which illustrates the relationship between demand and income, is important to understand the field as a whole. In this lesson, dive into the definition of income elasticity of demand and understand how it impacts normal goods, necessi...
expenditure function, which provides the minimum amount of money or income an individual must spend to achieve some pre-defined level of utility. In microeconomics, a consumer's indirect utility function illustrates both the consumer's preferences and prevailing market conditions and the economic ...