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basics of economics

Contributors in Economics


division of labor

Economy; Economics

People are better off specializing than trying to be jacks of all trades and ending up masters of none. The logic of dividing the workforce into different crafts and professions is the same as that ...


Economy; Economics

The part of a company’s profit distributed to shareholders. Unlike interest on debt, the payment of a dividend is not automatic. It is decided by the company’s managers, subject to the approval of ...


Economy; Economics

Not putting all your eggs in one basket. Investors are encouraged to do this by modern portfolio theory, as holding several different shares and other assets helps to reduce risk. At the sharp end of ...


Economy; Economics

Cutting out the middleman. Disintermediation has become a buzz word in financial services in particular, as competitive and technological changes have done away with the need for established ...


Economy; Economics

A fall in the rate of inflation. This means a slower increase in prices but not a fall in prices, which is known as deflation.


Economy; Economics

When supply and demand in a market are not in balance. Contrast with equilibrium.

discounted cashflow

Economy; Economics

How much less is a sum of money due in the future worth today? The answer is found by ¬discounting the future cashflow, using an interest rate that reflects the fact that money in future is worth ...

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