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What is a Dependent Variable?

A dependent variable is an attribute whose value is determined by the existence of other factors. A variable can be any kind of category or group that is being measured. It can take the form of an idea, object, period, or even feeling. For instance, the score of a test may be considered as dependent [...]

What is GDP per capita?

GDP per capita refers to the measurement of a country’s economic growth in relation to the country’s population. GDP stands for gross domestic product that means all that the country produces per year. To compute for GDP per capita, one must compute for the GDP and divide it to the population of the country. GDP [...]

What is microeconomics?

Microeconomics deals with the smaller components of the economy, particularly how markets and consumer behave. It is a branch of economics. Microeconomics analyzes the relationship between the individual consumers and their respective behaviors. This branch of economics focuses on the demand and supply patterns of a market along with how prices are determined and market [...]

What is Keynesian Economics?

Keynesian economics refers to a theory, which is named after the British economist John Maynard Keynes. This economist is most popular for his simple explanation about what caused the Great Depression. The economic theory of Keynes focuses on the circular flow of money, which states that when the amount of spending increases, the earnings increase [...]

What is equality?

Introduction: Equality builds the basis of human rights i.e. to treat everyone equally. Humans should be treated equally in the areas of race, gender, ethnicity, religion, beliefs, age and sexual orientation. And when states talk about equality, they mean that there is no discrimination in any of the above mentioned areas. It is very important [...]

What is CSC?

CSC is the abbreviation for Card Security Code. CSC is a crucial online security feature appearing at the back of MasterCard, Visa, Switch, JCB or Solo Card and on front side of AmericanExpress cards. This recent code has 3 to 4 digits that provide cryptographic scans on information imprinted on a card. A CSC code [...]

What is Empowerment?

Empowerment is a general term which means possessing or advancing strength and authority. In many fields of studies, empowerment may also mean the process of improving a person’s economical, social, educational, and social vigor. It enables one person to transform from being frail to a Supreme Being. It also means rising from the ground. Empowerment [...]

What is Game Theory?

Game theory is an essential aspect in economics, which involves the study of social situations and strategic decision making to secure the best outcomes. In political science and psychology, it is referred to as interactive decision theory. It is also used in parlor games like poker and bridge, which is done by making critical observations [...]

What is Earned Income?

Earned income is the money you receive from working or from specific disability payments. As opposed to unearned income, it comes from active sources like wages, salary, bonuses, and commissions. It basically includes all the proceeds of employment with the exclusion of pensions, annuities, and other worker’s compensation benefits. Earned income also includes severance pay, [...]

What is Myanmar Kyat?

The Myanmar Kyat, also known as MMK, is the official currency of Myanmar. Though one kyat is made up of a hundred pyas, pya coins are scarce making them use notes up to a thousand kyat. While the official exchange rate of MMK to U.S dollars has stayed around 7 kyats to one US dollar, [...]

What is Habitual Residence Test?

Habitual Residence Test (HRT) is a process in which a European Economic Area (EEA) national or an immigrant must undergo to have claim on social benefits that British citizens enjoy. As what the title suggests, “Habitual Residence” means that someone needs to have residence in the United Kingdom for a certain period of time. Also, [...]

What is an adjusted gross income?

Adjusted gross income refers to the taxable income of an individual under the US taxation system. This figure can be derived from the actual gross income minus the deductibles that are allowed under US tax filing laws.  These deductibles may include some expenses related to the individual’s business, moving expenses, and expenses for child support [...]

What is a debt ceiling?

A debt ceiling is a set limit to the amount of money that can be borrowed by a person or organization.  Debt ceilings are typically given specific amounts or values in order to put clarity in terms of exactly how much can be borrowed.  When this particular limit has been reached, borrowing may not be [...]

What is debt ceiling?

Debt ceiling refers to some kind of limit imposed by the US Congress for its own government.  The limit or ceiling on US debt is basically set to prevent the government from exhausting all its resources and engage in overspending.  Putting a limit on how the US government spends or borrows is one direct way [...]

What is ley farming?

Ley farming is a farming technique that involves the alternate planting of legumes or other crops with grassland pasture.  some people also call this type of farming as a type of crop rotation while others refer to it as alternate husbandry.  The main feature of alternate farming is that a piece of land is planted [...]

What is government spending?

Government spending refers to the expenditures and investments made by a particular government for a particular state, country, or its citizens. Depending on what is needed by a particular country or society for example, governments may choose to acquire goods and/or services. In some instances, government spending may also be directed investing for the future. [...]

What is Macroeconomics?

Economics can be classified in to two groups, namely macroeconomics and microeconomics. Macroeconomics examines the performance, behavior, decision making and structure of an economy as a whole. Global, national and regional economics fall under the category of macroeconomics. Macroeconomics deals with price indices, GDP, unemployment and other such aggregated indicators. Factors such as employment rate, [...]

What is CFED?

CFED stands for Corporation for Enterprise Development, a non-profit organization based in the US. The basic goal of the organization is to help out low income or poor families get the opportunities they deserve in terms of financial stability, educational options, overall economic opportunities. Through various policies and its partnerships with local communities and organizations, [...]

What is free enterprise?

Free enterprise refers to an economic system that allows people to create and conduct business in order to make a profit from it and without too much meddling from the government in terms of business practice rules and regulations.  The main feature of a free enterprise economy is that businesses are allowed to compete with [...]

What is DTA?

What is DTA? “DTA,” or “domestic tariff areas” are areas or zones that are located outside India’s SEZ and/or EOU. SEZ, or special economic zones, are specific locations wherein businesses typically function with less hassles for foreign investors in terms of taxes,  tariffs, and procedural guidelines.  EOU’s, or Export Oriented Units, meanwhile, are created similarly [...]

What is EOQ Inventory?

What is EOQ Inventory? EOQ stands for “Economic Order Quantity” and it refers the best level of inventory that a company can have in relation to costs and expenses that nthis same company shoulders in terms of production, inventory holding, demand rate, and other production variables. When quantifying EOQ, it basically points to how much [...]

What is GNP and GDP?

What is GNP and GDP? GNP stands for Gross National Product while GDP stands for Gross Domestic Product. Both terms represent as indicators of the economic stability or soundness of a particular country. The main difference between the two economic indicators is that GDP has a scope limited to “domestic” location, while GNP covers all [...]

What is Globalization?

What is Globalization? Globalization is a term that has several meanings and applications but generally refers to the increased cooperation between different countries in terms of trade and commerce. Most people agree that the term “globalization” started as an economic term which covers the unification of the world’s economies for better trading of goods and [...]

What is McDonaldization?

What is McDonaldization? McDonaldization is a sociological term coined by a man named George Ritzer. Through a book that he released back in 1993 entitled “The McDonaldization of Society”, he likens the cultural and social development of man to that of the famous fastfood chain. The main concept of McDonaldization involves some form of rationalization [...]

What is GST?

What is GST? GST refers to the Goods and Services Tax of Canada. It is a 5% value added tax on most goods and services in Canada. If you’re a business owner in Canada, then you are required by law to charge GST on covered goods and services. If you’re a consumer, then the price [...]

What is Cap Rate?

What is Cap Rate? Cap rate or capitalization rate is a ratio referring to the value of a particularly property based on its operating income and capital cost or market value. It is used by appraisers, lenders, and investors to have an estimate value of a property that is said to be income-generating. In simple [...]

What is Monetary Policy?

What is Monetary Policy? Interest rates regulations and money availability for the prevention of hard market crashes are often referred to as monetary policy. The United States establishes monetary policy through the United States Federal Reserve. Various countries use similar agency or system to monitor their monetary policy. The importance of monetary policy is often [...]

What is Quantitative Easing?

What is Quantitative Easing? Quantitative easing is a term used in finance and economics where a country’s central bank takes action to boost a country’s economy by increasing the supply of money. This is done when bank interests have gone to almost 0% and the desired result still has not been achieved. Quantitative easing was [...]

What is Economics?

Everyday there is talk of the economy either improving or declining, big and small economies, emerging economies and so much more. We all have a vague idea of what all this means but to be able to truly understand this economy talk we must begin by understanding what economics is all about. Economics is the [...]