Act of God An act of God describes an event outside of human control or activity. In essence, the phrase “Acts of God” refers to natural disasters. It refers to some unforeseen accident or natural cause that cannot be prevented by any reasonable foresight. Nobody is legally liable for.....
Abandonment An abandonment clause in a property insurance contract, under certain circumstances, permits the property owner to abandon lost or damaged property and still claim a full settlement amount. It is a clause in property insurance policies prohibiting the insured from abandoning damaged p.....
A stabilization policy is a package or set of measures introduced to stabilize a financial system or economy. It is a policy enacted by a government or its central bank that is aimed at maintaining a healthy level of financial expansion and minimum price changes. The term can refer to policies in.....
Bangladesh remarkably steady growth was possible due to a number of factors including population control, financial deepening, macroeconomic stability, and openness in the economy. Below describe the role of the World Bank in the economic development of Bangladesh – (1) The World Bank is li.....
The country inherited a shattered economy after the war of liberation of 1971. Mills and factories were closed down, agricultural production was interrupted and infrastructural facilities like roads, bridges, railways, power transmission lines, a telephone network, gas pipelines etc. were broken .....
Entrepreneurship refers to the organizing factor in the process of production. It embraces activities of entrepreneurs relating to such economic decisions as what to produce, how much to produce and what method of production to adopt. Within the sole proprietor firms, the entrepreneur accepts the.....
Diseconomies of Scale Definition: Diseconomies of scale lead the marginal cost of a product to increase as a company grows. This typically follows the law of diminishing returns, where the further increase in the size of output will result in an even greater increase in average cost. This concept.....
Consumption tax A consumption tax is a tax on spending on goods and services. The tax base of such a tax is the money spent on consumption. Consumption taxes are usually indirect, such as a value-added tax. However, it can also be structured as a form of personal taxation, as a sales tax, or as [.....
To tax is to impose a financial charge or another levy upon a taxpayer (an individual or legal entity) by a state or the functional equivalent of a state such that failure to pay is punishable by law. A tax charged by a government on a product, income, or activity. In economics, taxes fall on wh.....
Cost-Effectiveness Analysis Cost-effectiveness analysis (CEA) is a method of comparing the cost and effectiveness of two or more alternatives. CEA is an alternative to cost-benefit analysis (CBA). The technique compares the relative costs to the outcomes (effects) of two or more courses of action.....
Cost-Benefit Analysis Cost-benefit analysis (CBA) can be explained as a procedure for estimating all costs involved and possible profits to be derived from a business opportunity or proposal. It is sometimes called benefit costs analysis (BCA). The goal of CBA is to determine which option returns.....
Chainstore Paradox The chainstore paradox (or “chain-store paradox”) is a concept that purports to refute standard game theory reasoning. The chain store game is a simple game in an extensive form which produces an inconsistency between game theoretical reasoning and plausible human b.....