Economics

Supply and demand form the relationship between the quantity of a product or a service that sellers wish to sell, and the quantity of a product or a service that consumers wish to purchase.

Definition of Competition Competition is a situation in which someone is trying to win something or be more successful than someone else.

Definition of Inverse Relationship Inverse relationship is a type of correlation that exists between two variables wherein an increase in one variable is associated with a decrease in another variable.

“Production or manufacture” is the process of converting raw materials into finished goods.

Definition: Income is money (or some equivalent value) that an individual or business gets, usually in exchange through investing capital or providing a good or service.

Consumption flow and expenditure can be crucial to understand the fluctuations in the different business cycles.

Crossover rate is the cost of capital where two projects have the same net present values (NPV) or where their NPV profiles intersect.

Determinants of supply are the factors that can causes changes to, or affect, the supply of a product in the market.

Equilibrium is where the products or services demanded in a market is equivalent to the products or services that are supplied in the market.

Perfectly inelastic is where a small increase or decrease in the price of a product will have no effect on the quantity that is demanded or supplied of that product.

A voluntary exchange is a transaction where two people trade goods or services freely, there is no coercive or restrictive force involved in the transaction.

A perfectly elastic demand curve will be a straight line (horizontal) on a graph, where the x-axis will be the quantity, and the y-axis will be the price of the product.

Economic profit can be calculated by subtracting the opportunity cost from the accounting profit.

The supply schedule is a graph that shows you how much products are demanded from customers at a specific price based on the supply curve.

A check register, also known as cash disbursement journal, is the journal that records all the checks, cash and cash outlay during an accounting period.

Market demand refers to the sum of individual demand for a product available in the market.

Interest rate parity (IRP) is a concept which states that the interest rate differential between two countries is the same as the differential between the forwarding exchange rate and the spot exchange rate.

Unit elastic demand is the economic theory that assumes a change in product price causes an equal and proportional change in the quantity demanded.

A primary economic activity refers to any kind of economic activity that involves collecting, extracting or harvesting natural resources.

Production is the process of making or manufacturing goods and products from raw materials or components.

Monopoly refers to a type of market structure in which a single company and its goods and services dominate the market at all times.

The inflation rate is the percentage increase in the average level of prices of a basket of selected goods over time.