The General Agreement on Tariffs and Trade (GATT) was a multilateral agreement which regulated international trade. The agreement was created in 1947 and lasted until 1994, when it was replaced by the World Trade Organization (WTO). The GATT’s main purpose was to reduce barriers to trade, such as tariffs and other restrictions. The agreement also … Read more
The marginal rate of technical substitution (MRTS) is the rate at which one input can be replaced by another input while maintaining the same level of output. The MRTS measures the substitutability of inputs in production and is an important concept in the study of production economics. In general, the MRTS will decline as the … Read more
Trickle-down economics is an economic theory that suggests that tax breaks and other economic benefits provided to businesses and the wealthy will eventually benefit the rest of society. The theory is often associated with supply-side economics. What are two synonyms for trickle? Drip and trickle are both verbs that mean to flow or fall in … Read more
Gross domestic income (GDI) is a measure of the total income earned by all residents of a country in a given period of time. This includes both wages and salaries earned from work as well as income from investments and other sources. GDI is often used as a broad measure of a country’s economic activity … Read more
Seasonality is a feature of many time series in economics, indicating a systematic and predictable change in the value of a variable over the course of a year. The most common form of seasonality is a monthly pattern, where the value of the variable rises and falls in a predictable way over the course of … Read more
. Inflation: What It Is, How To Control It, and Examples of Extreme Inflation. What are the 7 types of inflation? There are 7 types of inflation: 1. Cost-Push Inflation: This happens when the prices of goods and services go up because the cost of the inputs used to produce them has increased. For example, … Read more
Definition, Formula to Calculate, and Example. What Is a Decile? A decile is a statistical unit used to measure the dispersion of a data set. The dispersion of a data set is a measure of how spread out the data is. The formula to calculate a decile is: Decile = (N + 1) * X, … Read more
Frictional unemployment is defined as unemployment that occurs when workers are in between jobs or are searching for their first job. This type of unemployment is considered to be natural and is not indicative of any sort of economic problem. Frictional unemployment is normal and should be expected in any economy. What are the types … Read more
A commodity is a physical good that is interchangeable with other goods of the same type. Commodities are basic resources that are used to produce other goods and services. They are often traded on commodities exchanges, and they are used as inputs in the production of other goods and services. Commodities play an important role … Read more
Tulip Mania: The Dutch Tulip Bulb Market Bubble. Where were tulips once used as a form of money? The Dutch were the first to use tulips as a form of money. They did this because tulips were in high demand and were a rare commodity. The Dutch government even issued a decree in 1637 that … Read more
