Social Sciences

Monopoly

A monopoly (from Greek μόνος, mónos, ’single, alone’ and πωλεῖν, pōleîn, ’to sell’) exists when a specific person or enterprise is the only supplier of a particular commodity. In economic theory, the analysis of monopoly was developed mainly within marginalism and on the basis of the scheme developed by Cournot. Monopoly is characterized by the fact that the company operating in such conditions, while […]

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Market

The word market, in economics, indicates the place (also in a figurative sense) and at the same time also the moment in which the economic-commercial exchanges of raw materials, goods, services, money, financial instruments, etc., of the particular economic subsystem of reference. In other words, market is one of the many varieties of systems, institutions, procedures,

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Insurance

Insurance is a way of sharing risk. People in a group pay premiums for insurance against some unpleasant event, and those in the group who actually experience the unpleasant event then receive some compensation. The fundamental law of insurance is that what the average person pays in overtime cannot be less than what the average

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Inflation

Inflation (from Latin inflatio “enfolding, swelling,” derived from inflāre “to inflate”) in economics, refers to the prolonged increase in the general average level of prices of goods and services over a given period of time, which generates a decrease in the purchasing power of money. Inflation is a general and ongoing rise in the level of prices

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Employment

Employment is a relationship between two parties, usually based on a contract where work is paid for, where one party, which may be a corporation, for-profit, not-for-profit organization, co-operative or other entity is the employer and the other is the employee. Human labor is one of the most important resources which need effective utilization –

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Economics

Economics is the social science that studies how humans make decisions facing scarcity, production, distribution, and consumption of goods and services. These can be individual decisions, family decisions, business decisions, or societal decisions. Economists analyze problems differently than do other disciplinary experts. The main tools economists use are economic theories or models. A theory is not

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Microeconomics

Microeconomics is a branch of economics that studies the behavior of individual economic agents, or systems with a limited number of agents, in making decisions regarding the allocation of scarce resources and the interactions among these individuals and firms. The microeconomic perspective focuses on parts of the economy: individuals, firms, and industries. Together with macroeconomics, which studies systems

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Macroeconomics

Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision making of an economy as a whole. This includes regional, national, and global economies. The macroeconomic perspective looks at the economy as a whole, focusing on objectives such as growth in living standards, unemployment, and inflation. Macroeconomics has two types of

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Division of labor

The division of labor is an economic concept which combines specialization and the partition of a complex production task into several, or many, sub-tasks which enables workers to focus on specific tasks. This concept was popularised by Adam Smith in An Inquiry into the Nature and Causes of the Wealth of Nations (1776). The division

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Demand

In economics, demand is an economic principle referring to a consumer’s desire to purchase goods and services and willingness to pay a price for a specific good or service during a given period of time. In economics, the law of demand states that the quantity demanded and the price of a good or service is inversely related,

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Cost

Cost, in economics, business management and accounting, means the expression in currency or other numerical value of the value of goods and services used in the production or purchase of a good or service. It can be determined on the basis of internal evaluations of the economic entity that holds it or in economic transactions

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Opportunity cost

Economists use the term opportunity cost to indicate what one must give up to obtain what he or she desires. In simple terms, opportunity cost is the benefit not received as a result of not selecting the next best option. The idea behind opportunity cost is that the cost of one item is the lost

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Consumer choice

The theory of consumer choice (or consumer demand theory) is the branch of microeconomics that relates preferences for the consumption of both goods and services to the consumption expenditures; ultimately, this relationship between preferences and consumption expenditures is used to relate preferences to consumer demand curves. Analogous to production theory, consumers will choose to purchase

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Commodity

In economics, a commodity is a basic good or service that is interchangeable with other goods of the same type. A commodity must be easily storable over time, that is, not lose its original characteristics. The high standardization that characterizes a commodity allows it to be easily negotiated on international markets. The term Commodity refers to raw

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Business to Business (B2B)

Business-to-business, often referred to as B2B, is a term used to describe electronic business transactions between companies, as opposed to those between companies and other groups, such as those between a company and individual consumers/clients (B2C, Business to Customer or Business to Consumer) or those between a company and the government (B2G, Business to Government).

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Business

A business is defined as the activity of an organization or enterprising entity engaged in commercial, industrial, or professional activities to produce or exchange goods or services. Businesses can be for-profit entities or non-profit organizations that operate to fulfill a charitable mission or further a social cause. Businesses must establish a clear set of values

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Budget constraint

In economics, a budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. There are two major differences between a budget constraint and a production possibilities frontier. The first is the fact that the budget constraint is a straight line. This

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Bank

Banks facilitate using the money for transactions in the economy because people and firms can use bank accounts when selling or buying goods and services, when paying a worker or receiving payment, and when saving money or receiving a loan. In the financial capital market, banks are financial intermediaries; that is, they operate between savers

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Allocative efficiency

The paradigm of allocative efficiency assumes that producers are only supplying goods that the market wants, i.e. products that are in high demand. In mathematical terms, it is the point at which price is equal to the marginal cost (the cost of producing one more unit of particular produce). Some allocations are inherently better than others in

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Goods

In economics, goods are items that are usually (but not always) tangible, that satisfy human wants and provide utility. Goods consist of material objects, even complex ones, which are considered differently from non-material goods, that is, from services. The goods can be an economic, natural or technically produced good, capable of being exchanged for other goods (bartering

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Politics

The term politics (from the ancient Greek politiká “city affairs”, der. from polis, “city”) is used to refer to the activities and methods of government, or even, in the political lexicon, to so-called opposition activity. It can refer to states, confederations and intergovernmental organizations, or to more limited local and territorial entities, such as regions

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Social class

In social and political studies, a social class is defined as a homogeneous group of individuals who share similar economic and cultural conditions and occupy a specific position in society. This position is derived from their productive activity, wealth, income, authority, prestige, and power in the hierarchy. The nomenclature of social classes has changed many

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