Economics

Economics

basics of economics

Industry: Economy

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Economics

Liquidity preference

Economy; Economics

The proportion of their assets that firms and in¬dividuals choose to hold in varying degrees of liquidity. The more cash they have, the greater is their desire for liquidity.

How easily an asset can be spent, if so desired. Cash is wholly liquid. The liquidity of other assets is usually less; how much less may be measured by the ease with which they can be exchanged for ...

Life-cycle hypothesis

Economy; Economics

An attempt to explain the way that people split their income between spending and saving, and the way that they borrow. Over their lifetime, a typical person's income varies by far more than how much ...

Life

Economy; Economics

Human life is priceless. But this has not stopped economists trying to put a financial value on it. One reason is to help firms and policymakers to make better decisions on how much to spend on ...

Minimum wage

Economy; Economics

A minimum rate of pay that firms are legally obliged to pay their workers. Most industrial countries have a minimum wage, although certain sorts of workers are often exempted, such as young people or ...

Milton Friedman

Economy; Economics

Loved and loathed; perhaps the most influential economist of his generation. He won the Nobel Prize for economics in 1976, one of many Chicago school economists to receive that honor. He has been ...

Microeconomics

Economy; Economics

The study of the individual pieces that together make an economy. Contrast with macroeconomics, the study of economy-wide phenomena such as growth, inflation and unemployment. Microeconomics ...