by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Concentration Ratio?In economics, a concentration ratio refers to the ratio of the market shares of a particular company in relation to the entire market size. This ratio also measures the size of a company or firm in comparison to the size of the whole...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Crowding Out Effect?The crowding-out effect is an economic theory that states that increased government spending effectively reduces total private spending. What Causes the Crowding Out Effect?Increase government spending causes higher demand for capital...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Positive Economics?Positive economics is a branch of economics that describes and explains economic happenings just the way they are and not the way they ought to be. Positive economics is otherwise called “what is” economics, while the normative...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Diner’s Dilemma?Diner’s dilemma refers to a situation where several participants in a game strive to get the highest reward but end up destroying themselves. In a bid to come out with the best result, players in a game put one another in an...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Surplus Spending Unit?A surplus spending unit is a term used for a unit where the revenue or income is equal to or more than the amount spent on consumption for a period of time. There is always a surplus left after it has covered its basic expenses for...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Time-Preference Theory Of Interest?The time preference theory of interest defines interest as the preference of people or a community for a dollar of present over the dollar of future income. Ordinarily, time preference refers to how goods are valued in...
