Economics

Developed Economy

Developed Economy

A developed economy is one that is located in a developed world with a high degree of economic growth and stability. It is an economy (country) with a significant degree of monetary action described by high per capita pay or per capita gross domestic product (GDP), undeniable degree of industrial.....

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External Economies Of Scale

External Economies Of Scale

External economies of scale apply to factors outside of a firm’s control that exist within the sector and result in such a cost advantage. Through the external economies of scale, the passage of new firms benefits all current contenders as it makes more noteworthy rivalry and furthermore le.....

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Stagflation – an unnatural situation of economic growth

Stagflation – an unnatural situation of economic growth

Stagflation is a combination of stagnant economic growth, high unemployment, and high inflation. There is no consensus among economists on the causes of stagflation. It’s an unnatural situation because inflation is not supposed to occur in a weak economy. The supply shock theory suggests th.....

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Economies Of Scale And Returns To Scale

Economies Of Scale And Returns To Scale

Returns to scale is a theoretical economic term that is often confused with economies of scale. As a company expands and its manufacturing units multiply, it has a greater chance of lowering its costs. As indicated by this hypothesis, financial development might be accomplished when economies of .....

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Disinflation – a decrease in the rate of inflation

Disinflation – a decrease in the rate of inflation

Disinflation is a temporary slowing of the pace of price inflation and is used to describe instances when the inflation rate has reduced marginally over the short term. It is a decrease in the rate of inflation – a slowdown in the rate of increase of the general price level of goods and service.....

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Chronic inflation – an economic phenomenon

Chronic inflation – an economic phenomenon

Inflation is an economic term describing the sustained increase in prices of goods and services within a period. Chronic inflation is an economic phenomenon occurring when a country experiences high inflation for a prolonged period (several years or decades) due to continual increases in the mone.....

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Stagflation – in Economics

Stagflation – in Economics

Stagflation is the severe economic situation, a weird combination of stagnant growth and rising inflation leading to high unemployment. In economics, stagflation or recession-inflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains ste.....

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Cost-push inflation

Cost-push inflation

Cost-push inflation is the decrease in the aggregate supply of goods and services stemming from an increase in the cost of production. It is a type of inflation caused by substantial increases in the cost of important goods or services where no suitable alternative is available. It occurs when ov.....

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Pension Fund

Pension Fund

A pension fund, also known as a superannuation fund, is a fund that accumulates money to be paid out to workers at the end of their careers as a pension when they retire. Funds are paid for by one or the other worker, managers, or both; companies and all degrees of government give benefits. Pensi.....

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Downside Risk – a financial risk associated with losses

Downside Risk – a financial risk associated with losses

The downside risk is the financial risk associated with losses. It is an estimation of a security’s potential to suffer a decline in value if the market conditions change or the amount of loss that could be sustained as a result of the decline. That is, it is the risk of the actual return b.....

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Cost Overrun – involves unexpected incurred costs

Cost Overrun – involves unexpected incurred costs

A cost overrun is the amount by which actual expenditures exceed the planned amount. It is also known as a cost increase or budget overrun, which involves unexpected incurred costs. These are common in large-scale projects, such as infrastructure and information technology projects. When these co.....

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Understanding Mortgage Fraud

Understanding Mortgage Fraud

Mortgage fraud happens when, in the course of applying for a mortgage loan to buy a house, a prospective homebuyer either provide false information or omits significant information. It is not to be confused with abusive mortgage lending, which takes place when the lender’s agents mislead or.....

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