Theory of the Firm (Economics) – Explained

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

What is the Theory of the Firm?The theory of the firm refers to the microeconomic approach devised in neoclassical economics that every firm operates in order to make profits. Companies ascertain the price and demand of the product in the market, and make optimum...

The Wealth Effect (Economics) – Explained

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

What is the Wealth Effect?The wealth effect creates the psychological effect that the increase in asset values has a direct impact on consumer spending. This states that consumer confidence automatically improves when the value of assets rises. And this confidence...

Supply Side Theory – Explained

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

What is the Supply-side Theory?The supply-side theory refers to an economic theory mentioning that if an economy supplies more goods and services, it would be the best way to achieve economic growth. Considering the fiscal level, the supply-side theory emphasizes on...

Supply Curve (Economics) – Explained

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

What is the Supply Curve?The supply curve refers to a graph showcasing the relationship between the cost of a product or service, and its supply for a specific period of time. When allocating points in a graph, the vertical axis represents the price, while the...

Sunk Cost Dilemma – Explained

by TheBusinessProfessor | Feb 23, 2025 | Business Finance, Personal Finance, and Valuation Principles

What is a Sunk Cost Dilemma?Sunk cost dilemma is an accounting term that helps an organization in deciding if they should continue or discontinue the project, provided they have invested their time and money, but still have not met any feasible objectives. Such...

Free Market – Explained

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

What is the Free Market?A free market refers to an economy in which there is only limited governmental regulation. Principles of Supply and Demand control the production and pricing of goods. The system is contrary to the regulated market where the government...

Dove & Hawk (Monetary Policy) – Explained

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

What is does Dovish Mean?Dove refers to an economic policy adviser who advocates for monetary policies involving low-interest rates. The doves argue that inflation isnt bad and that it is bound to have few negative effects on the economy. They also believe that...

Hard and Soft Skills – Explained

by TheBusinessProfessor | Feb 23, 2025 | Professionalism & Career Development

What are Hard and Soft Skills?Hard skills are a set of skills or expertise that employees need to carry out a job successfully. Hard skills are often specific to a particular job, and employers list them in the job descriptions when advertising jobs online. Examples...

Financial Analysis – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Financial Analysis?Financial analysis is the process of examining, evaluating financial information in business to make suitable business decisions. The examination process involves analyzing both current and historical profits, cash flows, and risks in the...

Financial Adviser – Explained

by TheBusinessProfessor | Feb 23, 2025 | Professionalism & Career Development

What is a Financial Adviser?A financial adviser refers to a professional who renders financial services to individuals based on their financial situation. The advisers usually specialize in different finance areas such as investment, mortgages, real estate,...