Economics

Economics

basics of economics

Industry: Economy

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Economics

time value of money

Economy; Economics

The idea that a dollar today is worth more than a dollar in the future, because the dollar in the hand today can earn interest during the time until the future dollar is received.

total return

Economy; Economics

The sum of all the different benefits from investing in an asset, including income paid to the investor and any change in the market value of the asset. The total return is often expressed as a ...

In a globalizing economy, it is perhaps surprising that countries increasingly trade with their nearest neighbors. One explanation is geography: as countries have lowered their tariff barriers, the ...

trade deficit/surplus

Economy; Economics

An excess of imports over exports is a trade deficit. An excess of exports over imports is a trade surplus. (See balance of payments. )

trade-weighted exchange rate

Economy; Economics

A country’s exchange rate with the currencies of its trading partners weighted by the amount of trade done by the country in each currency.

tragedy of the commons

Economy; Economics

A 19th-century amateur mathematician, William Forster Lloyd, modeled the fate of a common pasture shared among rational, utility-maximizing herdsmen. He showed that as the population increased the ...

transaction costs

Economy; Economics

The costs incurred during the process of buying or selling, on top of the price of whatever is changing hands. If these costs can be reduced, the price mechanism will operate more efficiently.