by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Co-Insurance Effect?The co-insurance effect takes place when risk is spread between two or more parties when two insurance companies share risks, it is coinsurance. The coinsurance effect is an economic theory that stipulates that when two companies are...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Utility Maximization?The actions of a consumer are directed toward utility maximization, where a consumer tries to achieve the best possible satisfaction at the most reasonable cost.What is Total Utility?Total utility refers to the amount of satisfaction that...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Rent-Seeking in Economics?Rent-seeking refers to a concept in economics and public choice theory that seeks to increase the existing wealths share but without creating a new one. Rent-seekings interest is to obtain financial gain by manipulating the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Life-Cycle Hypothesis?The Life-Cycle Hypothesis (LCH) refers to an economic theory which involves people’s spending, as well as, saving habits over the course of a lifetime. Franco Modigliani and Richard Brumberg, his student, developed the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Labor Force Participation Rate?The labor force participation rate (LFPR) measures the proportion of a countrys population that is active in the labor market. The rate examines the number of the working-age population that forms the active workforce of an...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Consumer Confidence Index?The Consumer Confidence Index (CCI) Survey is a metric that evaluates the level of optimism or pessimism of consumers with regard to the future economy and the expected financial state. The two economic factors that the CCI index...
