by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Allocative Efficiency? Allocative efficiency refers to the combination of goods (or services) produced is the optimum quantity desired by society as a whole. It is a specific point along the production possibility frontier (curve). Related Topics Budget...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Productive Efficiency? Productive efficiency refer to points along the production frontier where it is impossible to produce more of one good without decreasing the quantity that is produced of another good. Related Topics Budget Constraint Radner Equilibrium...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Marginal Benefit? For consumers, marginal benefit is a maximum amount of value or benefit that a consumer receives from one additional good or unit of service. That is, it is a measure of utility received from that next unit. For manufacturers or service...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What are Economic Incentives? Incentives are factors that motivate individuals in their actions or inaction. In economics, incentives are generally related to value and utility. What are Extrinsic and Intrinsic Incentives?Intrinsic incentives are internal in nature...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Enlightened Self Interest? Enlightened Self-Interest is the idea that individuals have regard for their self interest. Individuals must also regard the interests of others to promote their own best interest. Enlightened Self Interest is a concept put forward...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
Public goods are said to have two characteristics. They are: Excludable Non-rivalrous What are Excludable Goods?An excludable good can be limited in terms of who can and access the good. Excludability is generally on a scale. That is, there are varying degrees to...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Public Good?A public good, also known as a social good or collective good, is a good that is rivalrous and non-exclusive. Further, it is made available or accessible to the public for consumption or use. It is generally paid for by the public at...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Managerial Economics?Managerial Economics concerns the application of economic theories to the decision-making and planing about the use, distributions, and allocation of scarce resources within an organization.Related Topics Economics Scarcity in Economics ...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Traditional Economy?A Traditional Economy is where the distribution of scarce resources (goods and services within the economy) are distributed or allocated based upon historical practice, custom, belief, etc. Individuals tend to stay within family...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Labor Market? The labor market is essentially the supply and demand for workers. As the demand for employees fluctuates and increases or decreases within the market, the supply of employees changes along with the fluctuation. What influences the labor...
