Economics

Economics

basics of economics

Contributors in Economics

Economics

When a firm charges different customers different prices for the same product. For producers, the perfect world would be one in which they could charge each customer a different price: the price that ...

Price

Economy; Economics

In equilibrium, what balances supply and demand. The price charged for something depends on the tastes, income and elasticity of demand of customers. It depends on the amount of competition in the ...

Predatory pricing

Economy; Economics

Charging low prices now so you can charge much higher prices later. The predator charges so little that it may sustain losses over a period of time, in the hope that its rivals will be driven out of ...

Precautionary motive

Economy; Economics

Keeping some money handy, just in case. One of three motives for holding money identified by Keynes, along with the transactional motive (having the cash to pay for planned purchases) and the ...

Poverty trap

Economy; Economics

A poverty trap is "any self-reinforcing mechanism which causes poverty to persist." If it persists from generation to generation, the trap begins to reinforce itself if steps are not taken to break ...

Positive economics

Economy; Economics

Economics that describes the world as it is, rather than trying to change it. The opposite of normative economics, which suggests policies for increasing economic welfare.

Pareto efficiency

Economy; Economics

A situation in which nobody can be made better off without making somebody else worse off. Named after Vilfredo Pareto (1843–1923), an Italian economist. If an economy's resources are being used ...