The relationship between environment and economic development can be viewed from two perspectives: how the environment affects economic development and how economic activities affect the environment. Political stability, government policies, and environmental culture can influence economic development. The negative link between the two lies in how economic activities affect the environment, such as emissions from […]
Evolutionary economics uses evolutionary biology to explain economic phenomena. It argues that markets are devices of selection, with low-productivity enterprises being forced out of the market and high-productivity firms continuing to grow. The theory has been applied to various fields, including industrial organization and innovation management. Evolutionary economics is a branch of economic theory that […]
An Economic Development Company (EDC) is a non-profit or for-profit business that aims to stimulate local economies by attracting new businesses to an area and helping existing businesses expand. They work closely with local government employees and offer support services to help businesses grow. An economic development company (EDC) is a business that exists solely […]
Torts are injuries to business interests resulting in damage, with four main categories: conspiracy, inducement to breach contract, tort, and intimidation. Economic Liability Act protects individuals carrying on a business, but pure economic loss is not considered wrongful damages. Good faith and fair dealing are protected by tort laws. A tort is an injury to […]
Financial development and economic growth are linked through the collection of savings by financial institutions, which can then be redistributed through credit or loans to facilitate the procurement of goods and services. Financial institutions can also regulate the economy and channel financial resources to areas of greatest need. The study of the link between financial […]
Shock therapy is a rapid and drastic economic strategy used by governments to create immediate and widespread change within an economy. This can involve releasing price controls, privatizing sectors, or trade liberalization. Supporters argue that it can spur economic reforms, while detractors warn of potential negative consequences. In the realm of economics, shock therapy refers […]
Unemployment and economic growth are intertwined, with unemployment affecting economic growth and serving as an indicator of the state of the economy. High unemployment leads to decreased production, while low unemployment is related to increased demand for goods and services. Unemployment also deprives the government of resources needed for development. Economic growth and unemployment are […]
Normative economics involves interpreting data to determine how things should progress in the future, while positive economics focuses on hard facts. Normative statements are subjective and provide projections based on individual interpretation of available data. They can form the basis for new ideas and approaches and assist in setting achievable goals for the future. Normative […]
Modern economic theory looks beyond production and invisible hand theory, examining demand, money supply, and free trade. Classical economics focused on resource allocation. Keynesianism emphasizes government intervention to stimulate demand. Money supply economics uses central banks to control inflation and manage growth. Free trade is necessary for a thriving economy. Modern economic theory tends to […]
Economic pressure occurs during a recession or rising costs, causing consumers to cut costs and businesses to generate less revenue. The US government has created laws to ease economic pressure, such as welfare and job creation legislation. Economic pressure occurs when a company or a country is facing unwanted economic times. For example, it can […]
Transportation and economic growth are closely linked, as businesses require good quality roads, railways, waterways, and air transportation to transport goods and expand into international markets. The supply chain from raw materials to factories and delivery of finished products depends on a national transportation network. International transportation projects have boosted economic growth by reducing transportation […]
Efficiency in economics is the study of how nations and firms maximize their use of economic resources. Nations measure efficiency by assessing the wealth of their citizens, while businesses aim to produce goods and services at the lowest possible cost. Cost management is a common tool used by businesses to track economic efficiency. Economic efficiency […]
Economic theory explains the movement of goods in a market and is used by governments to make policies. Classical economics favors a free market, while command economies are led by national governments. Keynesian economics combines the two theories. Economists use data to inform decision-making and typically use the model of homo economicus to predict how […]
An Economic Development Fund (EDF) can be established by governments or non-profit foundations to promote economic growth in targeted areas. It can provide loans, grants, and investments to individuals and businesses, and may target specific segments of the local economy. Funding depends on customized application requirements and may be provided as a grant, loan, or […]
Economic summits bring together key leaders in a specific industry or region to discuss progress and trading methods. They can be open or secret, with no definitive characteristics beyond the economic aspect. The G8 Economic Summit is an annual meeting of the world’s largest developed nations to discuss plans and opportunities for the future. These […]
Economic risk is the possibility of a project being financially unsustainable due to various factors. It can be difficult to predict and can increase with the size and duration of a project. Economists can help reduce risk, and investors consider it when making decisions. Economic risk is a nebulous term with a variety of definitions. […]
Economic analysis examines market statistics and indicators to determine resource allocation plans, and can be used to gain insight into the current state of an economy. It involves collecting resource data, understanding recent economic history, and can be used to set and achieve future economic goals. It is used in both the private and public […]
The economic environment consists of microeconomic and macroeconomic factors, including inflation, government policies, interest rates, and import/export policies. These factors affect consumer behavior, business investment, and the overall health of the economy. Government intervention can have both positive and negative effects on the economic environment. An economic environment is the total number of economic factors […]
Labour, capital, natural resources, and investment are determinants of economic growth. Economic growth is achieved through population growth, investment, innovation, or education. A skilled workforce, availability of capital, and natural resources increase productivity. Investment is the ultimate determinant of economic growth, with a symbiotic relationship with other determinants. Labour, capital, natural resources and investment are […]
Education and economic growth are intertwined, with higher levels of education increasing productivity, fostering innovation, and enabling the rapid adoption of new technologies. However, measuring the impact of education on economic growth is difficult due to cultural variables. Investment in basic education has a smaller positive effect on most people’s lives than equal investment in […]
