Economics

Economics

basics of economics

Industry: Economy

Add a new term

Contributors in Economics

Become a Contributors

Economics

Stress-testing

Economy; Economics

A process for exploring how a portfolio of assets and/or liabilities would fare in extreme adverse conditions. A useful tool in risk management.

A programme of policies designed to change the structure of an economy. Usually, the term refers to adjustment towards a market economy, under a programme approved by the IMF and/or World Bank, which ...

Structural unemployment

Economy; Economics

The hardest sort of unemployment to cure because it is caused by the structure of an economy rather than by changes in the economic cycle. Contrast with cyclical unemployment, which can, in theory if ...

Subsidy

Economy; Economics

Money paid, usually by government, to keep prices below what they would be in a free market, or to keep alive businesses that would otherwise go bust, or to make activities happen that otherwise ...

Substitute goods

Economy; Economics

Goods for which an increase (or fall) in demand for one leads to a fall (or increase) in demand for the other – Coca-Cola and Pepsi, perhaps.

Substitution effect

Economy; Economics

When the price of petrol falls people buy more of it. There are two reasons. * The income effect: cheaper petrol means that real purchasing power rises, so consumers have more to spend on everything, ...

Sunk costs

Economy; Economics

When what is done cannot be undone. Sunk costs are costs that have been incurred and cannot be reversed, for example, spending on advertising or researching a product idea. They can be a barrier to ...