by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is an Underground Economy?An underground economy, also known as a black market or informal economy, is an economy consisting of transactions that are not recorded, monitored, or regulated by the government or other regulatory authority. What are the Activities in...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is General Equilibrium Theory?General equilibrium theory refers to a theory which tries to explain how demand, supply, and price functions in an economy as a whole and not just in a single or specific market. In other words, the general equilibrium analyzes the...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Radner Equilibrium?The Redner equilibrium refers to an economic concept that suggests that if an economic decision maker has unlimited computational capacity she can allocate resources in an optimal manner. This economic concept (theory) was first...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Nash Equilibrium?The Nash equilibrium is a popular gaming theory that was developed by John Forbes Nash, a mathematician. This theory presents the optimal solution in a game where both players are non-cooperative due to lack of incentive to change their...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Neoclassical Growth Theory?In economics, the neoclassical growth theory is an economic model that maintains that the stability of economic growth rests on three major factors: the availability of capital, the availability of labor, and State of technology....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Efficiency Principle?The efficiency principle is an economic theory that relates the efficiency of an action to the uniformity between the marginal benefits and the marginal social cost of allocated resources. This theory states that an action has the...
