TheBusinessProfessor, Author at TheBusinessProfessor

Nominal GDP Price Index

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Nominal GDP Price Index?Nominal GDP Price Index is an index used to convert historical GDP numbers to a present value. It is a price index is a two-digit decimal number like 1.00 or 0.85 or 1.25 (though, for ease of use, it has traditionally been...

Free Rider Problem for Public Goods?

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Free Rider Problem for Public Goods?Private companies find it difficult to produce public goods. If a good or service is nonexcludable, like national defense, so that it is impossible or very costly to exclude people from using this good or service, then...

Public Safety Net – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Public Safety Net?The U.S. government has implemented a number of programs to assist those below the poverty line and those who have incomes just above the poverty line, to whom we refer as the near-poor. Such programs are called the safety net, to...

Measuring Income Inequality

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

How to Measure Income Inequality?Measuring income inequality means dividing the population into various groups and then comparing the groups, a task that we can be carry out in several ways. Measuring Income Distribution by QuintilesOne common way of measuring income...

Poverty Line – Explained

by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy

What is the Poverty Line?Poverty is measured by the number of people who fall below a certain level of income—called the poverty line—that defines the income one needs for a basic standard of living. The US poverty line has traditionally been based on the cost of a...

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