by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Rule of Maximizing Utility? When making purchases you should choose the item with the greatest marginal utility per dollar spent (i.e., the most bang for the buck). For a finite budget (limited funds to expend), and making a choice of the quantity of two...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Supply? Supply is the number or quantity of goods or service available for purchase or consumption within a market or economy.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Demand? Demand, in economics, is a measure of the extent to which a consumer desires and willingness to purchase a given product or service at a pre-defined time or period. To constitute demand in the market, a consumer must have both the desire or need and...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Law of Diminishing Returns? The law of diminishing returns is the premise that additional units of a given resources may initially provide greater benefit; but, eventually the benefit provided by each additional unit will decline until it reaches zero (or...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Utility? Utility means use or usefulness. In economics, utility regards the extent to which a good or service satisfies a consumer’s need or want. It can be thought of as a measure of satisfaction.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Budget Constraint? A budget constraint indicates all the combinations that a consumer can purchase given the price of the goods and the amount of funds (budget). Generally, this means choosing some combination that that meets the consumers needs optimally...
by TheBusinessProfessor | Feb 23, 2025 | Global Business, International Law & Relations
What are Exports? Exports are the goods and services that one produces domestically and sells abroad. What are Imports? Imports are the goods and services that one produces abroad and then sells domestically.
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Government Market Regulation? Government regulation is a form of control exercised by Governments over private markets. Governments generally seek to regulate private markets through a combination of statutes, court interpretations, and administrative agency...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Theory?A theory is a proposed answer or abstract representation concerning how two or more variables interact with each other. Theories seek to take a complex, real-world issue and simplify it down to its essentials. The objective is to enable someone to...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Division of Labor? Division of labor concerns dividing the production of a good or service into a number of tasks that different workers perform, instead of all the tasks being done by the same person. Who Introduced the Concept of Division of Labor? Adam...
