Marxian Economics: Definition, Theories, and Comparison with Classical Economics

Marxian Economics: Definition Marxian economics views capitalism as a system characterized by inherent contradictions and class struggle. It argues that the capitalist mode of production leads to the exploitation of the working class by the bourgeoisie, resulting in social inequality and economic instability. According to Marxian economics, the capitalist system …

Market Penetration Strategies: How to Increase Your Market Share

Benefits of Increasing Market Share Increasing market share can bring numerous benefits to a business. Here are some key advantages: 1. Increased Profits One of the main benefits of increasing market share is the potential for increased profits. As a business captures a larger portion of the market, it can …

Market Failure: Types And Causes In Economics

Types of Market Failure In economics, market failure refers to a situation where the allocation of goods and services by a free market is not efficient, resulting in an inefficient allocation of resources. There are several types of market failures that can occur in different market structures: 1. Monopoly Power …

Marginal Social Cost (MSC) – Definition, Formula, Example

Definition of Marginal Social Cost (MSC) The Marginal Social Cost (MSC) is a concept in economics that measures the additional cost imposed on society as a whole for producing one more unit of a good or service. It takes into account both the private costs borne by the producer and …

Marginal Revenue Product MRP Definition and How Its Predicted

Marginal Revenue Product: Definition and Importance Definition of Marginal Revenue Product Importance of Marginal Revenue Product Additionally, MRP can also help businesses determine the optimal level of input to employ. If the MRP of an input is decreasing, it indicates that the business is reaching a point of diminishing returns, …

Marginal Propensity to Save (MPS) – Definition and Calculation

Calculating Marginal Propensity to Save The Marginal Propensity to Save (MPS) is a crucial concept in economics that measures the change in savings resulting from a change in income. Calculating the MPS allows economists and policymakers to understand how individuals and households allocate their income between consumption and saving. To …

Marginal Propensity To Import MPM Definition and Calculation

Marginal Propensity To Import (MPM): Definition and Calculation Definition Calculation To calculate the MPM, you need to know the change in imports and the change in income or output. The formula for calculating the MPM is as follows: MPM = (Change in Imports) / (Change in Income or Output) For …

Longitudinal Data Definition and Uses in Finance and Economics

What is Longitudinal Data? Longitudinal data refers to a type of data that is collected over a period of time from the same subjects or entities. It involves the observation of the same variables or characteristics at multiple points in time. This type of data is commonly used in finance …

Lintner’S Model: The Concept, Key Features, And Calculation

Concept of Lintner’s Model The concept of Lintner’s Model is a financial model that was developed by John Lintner in 1956. It is used to analyze and predict the dividend policy of a company based on its historical dividend behavior and the company’s future earnings prospects. The model is based …

Leakage in Economics: Definition and Examples

Leakage in Economics: Definition and Examples Leakage in economics refers to the outflow or diversion of funds from a particular economic system or process. It occurs when money or resources that are intended to circulate within an economy are instead redirected elsewhere, leading to a decrease in economic activity and …

Law of One Price Definition Example Assumptions

Law of One Price: Definition, Example, Assumptions The Law of One Price is an economic concept that states that in an efficient market, the price of a commodity should be the same across different locations. This principle is based on the idea of arbitrage, which suggests that if there is …

Labor Productivity: Calculate and Improve Efficiency

Labor Productivity: Calculate and Improve Efficiency Labor productivity is a crucial aspect of any business or organization. It refers to the amount of output or work produced per unit of labor input. Calculating and improving labor productivity is essential for maximizing efficiency and profitability. Labor productivity is a measure of …

Labor Market Theories and Inclusion: Understanding the Dynamics

The Role of Labor Market Theories in Economic Analysis Furthermore, labor market theories help economists understand the dynamics of labor market inclusion. They provide insights into the factors that contribute to the exclusion of certain groups from the labor market, such as discrimination, lack of skills or education, and structural …

Labor Force Participation Rate: The Purpose, Formula, And Current Trends

Purpose of Labor Force Participation Rate The labor force participation rate is a key economic indicator that measures the percentage of the working-age population that is either employed or actively seeking employment. It provides valuable insights into the overall health and dynamics of the labor market. Importance of Labor Force …

Keynesian Put: The Concept And Its Impact On The Economy

What is the Keynesian Put? The Keynesian Put is a concept in economics that refers to the idea that government intervention can help stabilize the economy during times of crisis. It is based on the theories of John Maynard Keynes, a prominent economist of the 20th century. Keynes argued that …

Keynesian Economics Theory: Definition and Application

Keynesian Economics Theory: Definition and Application Keynesian economics is a macroeconomic theory that was developed by the British economist John Maynard Keynes in the 1930s. It is based on the idea that government intervention in the economy can help stabilize it during times of recession or depression. The main idea …

Keiretsu: Definition, How It Works in Business, and Types

Keiretsu: Definition, How It Works in Business, and Types Keiretsu is a unique business structure that originated in Japan and has since been adopted by companies around the world. It is a form of interlocking business relationships where a group of companies, usually with a common parent company, work together …

Joseph Stiglitz: The Impact of Education, Work, and Legacy

Joseph Stiglitz: The Impact of Education, Work, and Legacy Education Stiglitz emphasizes the importance of education in driving economic growth and reducing inequality. He argues that investing in education is crucial for developing human capital, which in turn leads to higher productivity and innovation. Stiglitz advocates for policies that ensure …

John Stuart Mill: A Biography of the Influential Philosopher

John Stuart Mill: A Biography of the Influential Philosopher John Stuart Mill was a renowned philosopher and economist who made significant contributions to the fields of political theory and economics. Born on May 20, 1806, in London, England, Mill grew up in a highly intellectual environment. His father, James Mill, …

John F. Nash Jr. – Education, Accomplishments, Legacy

Studying Mathematics and Economics After completing his undergraduate studies, Nash went on to pursue a Ph.D. in mathematics at Princeton University. It was during his time at Princeton that he made groundbreaking contributions to the field of game theory, which would later earn him the Nobel Prize in Economics. Nash’s …

John B Taylor Biography

John B Taylor Biography John B. Taylor is an American economist and professor who has made significant contributions to the field of economics. He is best known for his work on monetary policy and the development of the Taylor rule, a formula that relates interest rates to inflation and economic …

Jan Tinbergen: Biography, Achievements, and Education

Jan Tinbergen: Biography, Achievements, and Education Jan Tinbergen was a renowned Dutch economist who made significant contributions to the field of economics. Born on April 12, 1903, in The Hague, Netherlands, Tinbergen’s work had a profound impact on economic policy and theory. Tinbergen’s interest in economics began at a young …

Jackson Hole Economic Symposium: Definition and Importance

Jackson Hole Economic Symposium: Definition and Importance The Jackson Hole Economic Symposium is an annual conference held in Jackson Hole, Wyoming. It brings together central bankers, finance ministers, academics, and other influential figures in the field of economics to discuss important economic issues and policy implications. What is the Jackson …

Industrialization: Definition, Examples, and Societal Impacts

What is Industrialization? Industrialization refers to the process of transforming an economy from one that is primarily based on agriculture and manual labor to one that is dominated by manufacturing and industry. It involves the development of industries, factories, and the mass production of goods. Industrialization typically involves the use …