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The division of things into shares or portions.

In economics, the term refers primarily to the


allocation of resources, the process by which economic resources get allotted (apportioned, assigned)
to their particular uses for directly or indirectly satisfying human wants.
A cost-benefit analysis is a process by which business decisions are analyzed. The benefits of a
given situation or business-related action are summed, and then the costs associated with taking that
action are subtracted. A cost-benefit analysis is done to determine how well, or how poorly, a planned
action will turn out. Although a cost-benefit analysis can be used for almost anything, it is most
commonly done on financial questions. Since the cost-benefit analysis relies on the addition of positive
factors and the subtraction of negative ones to determine a net result, it is also known as running the
numbers. can be explained as a procedure for estimating all costs involved and possible profits to be
derived from a business opportunity or proposal.
Traditional Economic System focuses exclusively on goods and services that are directly related
to its beliefs, customs, and traditions. It relies heavily on individuals and doesnt usually show a
significant degree of specialization and division of labor. In other words, traditional economic systems
are the most basic and ancient type of economies.Large parts of the world still qualify as traditional
economies. Especially rural areas of second- or third-world countries, where most economic activity
revolves around farming and other traditional activities. These economies often suffer from a lack of
resources. Either because those resources dont naturally occur in the region or because access to them
is highly restricted by other, more powerful economies.Hence, traditional economies are usually not
capable of generating the same amount of output or surplus that other types of economies can produce.
However, the relatively primitive processes are often much more sustainable and the low output results
in much less waste than we see in any command, market, or mixed economy.
Command Economic Systemis characterized by a dominant centralized power (usually the
government) that controls a large part of all economic activity. This type of economy is most commonly
found in communist countries. It is sometimes also referred to as a planned economic system, because
most production decisons are made by the government (i.e. planned) and there is no free market at
play.Economies that have access to large amounts of valuable resources are especially prone to
establish a command economic system. In those cases the government steps in to regulate the
resources and most processes surrounding them. In practice, the centralized control aspect usually only
covers the most valuable resources within the economy (e.g. oil, gold). Other parts, such as agriculture
are often left to be regulated by the general population.
A command economic system can work well in theory, as long as the government uses its power in the
best interest of society. However, this is unfortunately not always the case. In addition to that,
command economies are less flexible than the other systems and react slower to changes, because of
their centralized nature.
Market Economic System relies on free markets and does not allow any kind of government
involvement in the economy. In this system, the government does not control any resources or other
relevant economic segments. Instead, the entire system is regulated by the people and the law of supply
and demand.The market economic system is a theoretical concept. That means, there is no real example
of a pure market economy in the real world. The reason for this is that all economies we know of show
characteristics of at least some kind of government interference. For example, many governments pass
laws to regulate monopolies or to ensure fair trade and so on.In theory, a market economic system
enables an economy to experience a high amount of growth. Arguably the highest among all four
economic systems. In addition to that, it also ensures that the economy and the government remain
separate. At the same time however, a market economy allows private actors to become extremely
powerful, especially those who own valuable resources. Thus, the distribution of wealth and other
positive aspects of the high economic output may not always be beneficial for society as a whole.
Mixed Economic Systemrefers to any kind of mixture of a market and a command economic
system. It is sometimes also referred to as a dual economy. Although there is no clear-cut definition of a
mixed economic system, in most cases the term is used to describe market economies with a strong
regulatory oversight and government control in specific areas (e.g. public goods and services).
Most western economies nowadays are considered mixed economies. Most industries in those systems
are privately owned whereas a small number of public utilities and services remain in government
control. Thus, neither the private nor the government sector alone can maintain the economy, both play
a critical part in the success of the system.Mixed economies are widely considered an economic ideal
nowadays. In theory, they are supposed combine the advantages of both command and market
economic systems. In practice however, its not always that easy. The extent of government control
varies greatly and some governments tend to increase their power more than necessary
'Economic depreciation is a measure of the decrease in value of an asset over time. This form of
depreciation usually pertains to real estate, which can lose value due to indirect causes such as the
addition of new construction in close proximity to the property, road additions or closures, a decline in
the quality of the neighborhood, or other external factors. Economic depreciation is different than
depreciation expense on tangible assets, such as machinery or equipment.
discount rate is the interest rate charged to commercial banks and other depository institutions
for loans received from the Federal Reserve's discount window. The discount rate also refers to the
interest rate used in discounted cash flow analysis to determine the present value of future cash flows.
Economics is a social science concerned with the production, distribution and consumption of
goods and services. It studies how individuals, businesses, governments and nations make choices on
allocating resources to satisfy their wants and needs, and tries to determine how these groups should
organize and coordinate efforts to achieve maximum output.
Economic analysis often progresses through deductive processes, much like mathematical logic, where
the implications of specific human activities are considered in a "means-ends" framework.
Economics can generally be broken down into macroeconomics, which concentrates on the behavior of
the aggregate economy, and microeconomics, which focuses on individual consumers.
Internal migration is defined as a change in permanent residence, typically of a year or more in
duration, within the boundaries of a country.
External Migration refers to those who have been found to have migrated into or out of the
Demographic Surveillance Area and is distinct from internal migration of registered members remaining
within the DSA. External Migration refers to those who have been found to have migrated into or out of
the Demographic Surveillance Area and is distinct from internal migration of registered members
remaining within the DSA. Internal migration is the movement of people from one defined area to
another within a country.
The state of having reliable access to a sufficient quantity of affordable, nutritious food.food
security has declined dramatically in many developing countriesthe ultimate in individual food security
is growing your own food
The Gini coefficient is a measure of inequality of a distribution. It is defined as a
ratio with values between 0 and 1: the numerator is the area between the Lorenz curve
of the distribution and the uniform distribution line; the denominator is the area under
the uniform distribution line. It was developed by the Italian statistician Corrado Gini
and published in his 1912 paper "Variabilit e mutabilit" ("Variability and
Mutability"). The Gini index is the Gini coefficient expressed as a percentage, and is
equal to the Gini coefficient multiplied by 100. (The Gini coefficient is equal to half
of the relative mean difference.) Gini coefficient is often used to measure income inequality. Here, 0
corresponds to perfect income equality (i.e. everyone has the same income) and 1 corresponds to
perfect income inequality (i.e. one person has all the income, while everyone else has zero income). Gini
coefficient can also be used to measure wealth inequality. This use requires that no one has a negative
net wealth. It is also commonly used for the measurement of discriminatory power of rating systems in
the credit risk management.
Human capital is a measure of the economic value of an employee's skill set. This measure
builds on the basic production input of labor measure where all labor is thought to be equal. The
concept of human capital recognizes that not all labor is equal and that the quality of employees can be
improved by investing in them; the education, experience and abilities of employees have economic
value for employers and for the economy as a whole. economics the abilities and skills of any individual,
esp those acquired through investment in education and training, that enhance potential income
earning
human resources noun the personnel of a business or organization, especially when regarded
as a significant asset. the department of a business or organization that deals with the hiring,
administration, and training of personnel. Human resources (HR) is the company department charged
with finding, screening, recruiting and training job applicants, as well as administering employee-benefit
programs. As companies reorganize to gain competitive edge, human resources plays a key role in
helping companies deal with a fast-changing environment and the greater demand for quality
employees.
From a policy perspective, economic development can be defined as efforts that seek to
improve the economic well-being and quality of life for a community by creating and/or retaining jobs
and supporting or growing incomes and the tax base. Progress in an economy, or the qualitative
measure of this. Economic development usually refers to the adoption of new technologies, transition
from agriculture-based to industry-based economy, and general improvement in living standards.
It is very difficult to define human wants within few words. All of us want to live. For this reason,
we need food, clothing and shelter. Human desire for better and ever better living, the desire for
change, increasing knowledge, human progress etc. have led to emergence and growth of more and
newer wants. Human wants" are those things that people desire to have above what they truly need in
order to live. Only a limited number of needs actually exists, but wants are virtually unlimited, restricted
only by a person's imagination.
'Knowledge Capital' An intangible asset that comprises the information and skills of a company's
employees, their experience with business processes, group work and on-the-job learning. An intangible
asset that comprises the information and skills of a company's employees, their experience with
business processes, group work and on-the-job learning. Knowledge capital is not like the physical
factors of production - land, labor and capital - in that it is based on skills that employees share with
each other in order to improve efficiencies, rather than on physical items. Having employees with skills
and access to knowledge capital puts a company at a comparative advantage to its competitors
Infrastructure is the basic physical systems of a business or nation; transportation,
communication, sewage, water and electric systems are all examples of infrastructure. These systems
tend to be high-cost investments; however, they are vital to a country's economic development and
prosperity. Internal facilities of a country that make business activity possible, such as communication,
transportation, and distribution networks, financial institutions and markets, and energy supply systems.
implicit cost of liquid assets or stockholders' (shareholders') capital is the maximum interest that
would be earned on them as a fixed deposit or as an investment in a mutual fund (unit trust). Implicit
costs must be added to actual cash outlays to establish a true estimate of the cost of production or of
running a business. Also called imputed cost, implied cost, or notional cost.
It is related to explicit costs, which represent the actual costs of an activity, and represents a
cost that is not recorded but instead implied. For example, an employee could take a vacation and
travel. The explicit costs would include travel expenses, the cost of a hotel room, and costs related to
entertainment. The implicit costs relate to the tradeoff, namely the wages that the employee could have
earned if the vacation was not taken.
Implicit Cost vs Explicit Cost

Implicit and explicit costs are two types of costs that occur in a company. Both implicit and explicit costs
come after a business transaction or activity. They can occur in any business activity like marketing
distribution, production, or recruitment.

Explicit costs are costs that occur and are reported in business documents. They are also known as direct
costs or accounting costs. An explicit cost is a cost that happens for a purpose. In addition, explicit costs
usually have a direct impact on the company and its and profits. Explicit costs result in tangible assets or
opportunities for the company. Examples of explicit costs are: payments for rent, salary and wages,
services from other companies, raw materials, maintenance, bills, and other expenditures.

Explicit costs are easier to identify, recognize, and account for because they leave a record or paper trail.
In addition, explicit costs usually involve physical objects and money-based transactions.

Explicit costs are used by accountants in preparing business analyses and business-related documents
like accounting management and financial reports. For accountants, the explicit costs determine the
companys profit loss or gain. Explicit costs are used to provide a clear concept or picture of a companys
profit and performance. Aside from being used in reviewing profits and performance, explicit costs are
also useful in financial planning or forecasting trends.
On the other hand, implicit costs are the direct opposite of explicit costs. Implicit costs are also called
implied costs, economical costs, or notational costs. Implicit costs are not really shown or reported as
costs.

Implicit costs are usually described as opportunity costs or the loss of an opportunity in a given time or
situation. Implicit costs deal with intangibles that usually leave without a trace or record. Implicit costs
include: wasted potential opportunities, time, profit, and labor. Implicit costs waive the potential
benefits and satisfaction in a certain business transaction. Simply put, an implicit cost is the loss of a
possible benefit or asset that did not occur.

Implicit costs can also be said to be the indirect results of business activities and processes. Usually, they
involve indirect expenses from unforeseen events or emergencies. Since implicit costs leave no records,
these costs are not easy to account for.

Economists use explicit costs to determine the economic profits of a business. Using implicit costs,
economists can also determine the total costs of running a particular business. This is done by adding
the implicit costs and explicit costs.
A marginal benefit is the additional satisfaction or utility that a person receives from consuming
an additional unit of a good or service. A person's marginal benefit is the maximum amount he is willing
to pay to consume that additional unit of a good or service. Marginal benefit is the incremental value a
customer perceives from purchasing and using an additional unit of a good or service. It is a pivotal
economics concept in that companies must recognize that customers don't always value later units as
much as initial units purchased. Marginal benefit is the incremental increase in the benefit to a
consumer caused by the consumption of one additional unit of a good or service.
As a consumers consumption level increases, the marginal benefit tends to decrease (which is called
diminishing marginal utility). Thus, the marginal benefit experienced by a consumer is highest for the
first unit of consumption, and declines thereafter. For example, a customer is willing to pay $5 for an ice
cream, so the marginal benefit of consuming the ice cream is $5. However, the customer may be
substantially less willing to purchase additional ice cream at that price only a $2 expenditure will tempt
the customer to buy another one. If so, the marginal benefit has declined from $5 to $2 over just one
extra unit of ice cream. Thus, the marginal benefit declines as the consumer's level of consumption
increases..
economics, marginal cost is the change in the opportunity cost that arises when the quantity
produced is incremented by one unit, that is, it is the cost of producing one more unit of a good. The
increase or decrease in the total cost of a production run for making one additional unit of an item. It is
computed in situations where the breakeven point has been reached: the fixed costs have already been
absorbed by the already produced items and only the direct (variable) costs have to be accounted for.
Marginal costs are variable costs consisting of labor and material costs, plus an estimated portion of
fixed costs (such as administration overheads and selling expenses). In companies where average costs
are fairly constant, marginal cost is usually equal to average cost. However, in industries that require
heavy capital investment (automobile plants, airlines, mines) and have high average costs, it is
comparatively very low.
n economics, the Lorenz curve is a graphical representation of the distribution of income or of
wealth. It was developed by Max O. Lorenz in 1905 for representing inequality of the wealth
distribution.The Lorenz curve is a graphical representation of income inequality or wealth inequality
developed by American economist Max Lorenz in 1905. The graph plots percentiles of the population
according to income or wealth on the horizontal axis. It plots cumulative income or wealth on the
vertical axis, so that an x-value of 45 and a y-value of 14.2 would mean that the bottom 45% of the
population controls 14.2% of the total income or wealth.
The Lorenz curve is often accompanied by a straight diagonal line with a slope of 1, which represents
perfect equality in income or wealth distribution; the Lorenz curve lies beneath it, showing the actual
distribution. The area between the straight line and the curved line, expressed as a ratio of the area
under the straight line, is the Gini coefficient, a measurement of inequality.
A benefit, profit, or value of something that must be given up to acquire or achieve something
else. Since every resource (land, money, time, etc.) can be put to alternative uses, every action, choice,
or decision has an associated opportunity cost.
Poverty is a state or condition in which a person or community lacks the financial resources and
essentials to enjoy a minimum standard of life and well-being that's considered acceptable in society.
Poverty status in the United States is assigned to people that do not meet a certain threshold level set
by the Department of Health and Human Services.
Food threshold is the minimum income required to meet basic food needs and satisfy the
nutritional requirements set by the Food and Nutrition Research Institute (FNRI) to ensure that one
remains economically and socially productive. It is used to measure extreme or subsistence poverty.
Poverty threshold is a similar concept, expanded to include basic non-food needs such as clothing,
housing, transportation, health, and education expenses. The poverty threshold, poverty limit or
poverty line is the minimum level of income deemed adequate in a particular country. ... At present the
percentage of the global population living under extreme poverty is likely to fall below 10% according to
the World Bank projections released in 2015.
An economic profit or loss is the difference between the revenue received from the sale of an
output and the opportunity cost of the inputs used. In calculating economic profit, opportunity costs are
deducted from revenues earned.An economic profit or loss is the difference between the revenue
received from the sale of an output and the opportunity cost of the inputs used. In calculating economic
profit, opportunity costs are deducted from revenues earned. Opportunity costs are the alternative
returns foregone by using the chosen inputs, and as a result, a person can have a significant accounting
profit with little to no economic profit. Economic profit is the profitability measurement that calculates
the amount that revenues received from selling a product exceeds opportunity costs incurred from
using resources to make and sell these products. In other words, its the excess money a company
earned from one course of action over another had they chosen differently.
An opportunity cost is the economic concept of potential benefits that a company gives up by
taking an alternative action. In other words, this is the potential benefit you could have received if you
had taken action A instead of action B.
An implicit cost is an opportunity cost of using a firms internal resources that isnt reported as
separate, distinct expense. In fact, these costs do not explicitly state the cost of using these resources
for a project.
Revenue, also called a sale, is an increase in equity related to the sale of a product or service
that earned income. In other words, revenue is income earned by the company from its business
activities. There are many different types of revenues including product sales, consulting fees and other
services, rent, and even commission based fees. Any type of income that is earned from business
operations is considered to be a revenue.
Relative poverty is the condition in which people lack the minimum amount of income needed
in order to maintain the average standard of living in the society in which they live. Relative poverty is
considered the easiest way to measure the level of poverty in an individual country
means trying to agree a general definition of poverty which is valid at all times and for all
economies this is difficult to do.
Research and development (R&D) refers to the investigative activities a business conducts to
improve existing products and procedures or to lead to the development of new products and
procedures. ... In general, pharmaceuticals, semiconductor and software/technology companies tend to
spend the most on R&DResearch and Development involves investment in discovering new technology
and increasing capacity of a firm. It could involve technological innovation or improvements in human
capital. It usually requires a willingness to forego current profit to invest. Successful research &
Development may lead to innovate new products. There is no guarantee that Research & Development
will be successful. You could spend Billions of pounds in researching an alternative to oil, but, it may fail.
Economic resources are the goods or services available to individuals and businesses used to
produce valuable consumer products. The classic economic resources include land, labor and capital.
Scarcity is the fundamental economic problem of having seemingly unlimited human wants and
needs in a world of limited resources. It states that society has insufficient productive resources to fulfill
all human wants and needs. Scarcity refers to the basic economic problem, the gap between limited
that is, scarce resources and theoretically limitless wants. This situation requires people to make
decisions about how to allocate resources efficiently, in order to satisfy basic needs and as many
additional wants at possible. Any resource that has a non-zero cost to consume is scarce to some
degree, but what matters in practice is relative scarcity. The problem of scarcity is regarded as the
fundamental economic problem arising from the fact that, while resources are finite, society's demand
for resources is infinite. Scarcity is a relative rather than an absolute concept - water is more scarce in
the desert and less scarce in the rainforest.
Economic methodology is the study of methods, especially the scientific method, in relation to
economics, including principles underlying economic reasoning. In contemporary English, 'methodology'
may reference theoretical or systematic aspects of a method (or several methods). A structured way of
investigating and explaining the operation of the world by testing and verifying hypothesized
relationships. The scientific method is a process of discovery, a method of explaining phenomena that
can be better understood with an overview of theory, principles, world view, hypothesis, and
verification.
Spatial economics deals with what is where, and why. The what refers to every type of
economic entity, i.e., production establishments, other kinds of businesses, households, and public and
private institutions. Where refers basically to location in relation to other economic activity, i.e., to
questions of proximity, concentration, dispersion, and similarity or disparity of spatial patterns. The
where can be defined in broad terms such as regions or metropolitan areas, or in microgeographic
terms such as zones, neighborhoods, or sites. The why refers to explanations within the somewhat
elastic limits of the economists competence.
n economics, spillover effects are economic events in one context that occur because of
something else in a seemingly unrelated context. For example, externalities of economic activity are
non-monetary effects upon non-participants. Spillover effect refers to the impact that seemingly
unrelated events in one nation can have on the economies of other nations. Although there are positive
spillover effects, the term is most commonly applied to the negative impact a domestic event has on
other parts of the world. For example, if consumer spending in the United States declines, it has
spillover effects on the economies that depend on the U.S. as their largest export market. The larger an
economy is, the more spillover effects it is likely to produce across the global economy.
Social benefit is the total benefit to society from producing or consuming a good/service.
Social benefit includes all the private benefits plus any external benefits of production/consumption.
If a good has significant external benefits, then the social benefit will be greater than the private benefit.
Social benefits are private benefits gained by individuals directly involved in a transaction together with
the external benefits gained by third parties not directly involved in the transaction.
Social cost in economics may be distinguished from "private cost". ... Social cost is also
considered to be the private cost plus externalities. Rational choice theory often assumes that
individuals consider only the costs they themselves bear when making decisions, not the costs that may
be borne by others. Social costs are private costs borne by individuals directly involved in a transaction
together with the external costs borne by third parties not directly involved in the transaction. The
Social Cost is the cost related to the working of the firm but is not explicitly borne by the firm instead it
is the cost to the society due to the production of a commodity. The social cost is used in the social cost-
benefit analysis of the overall impact of the operations of the business on the society as a whole and do
not normally figure in the business decisions.
Social science is, in its broadest sense, the study of society and the manner in which people
behave and influence the world around us.Social science tells us about the world beyond our immediate
experience, and can help explain how our own society works - from the causes of unemployment or
what helps economic growth, to how and why people vote, or what makes people happy. It provides
vital information for governments and policymakers, local authorities, non-governmental organisations
and others.
A surplus is used to describe many excess assets including income, profits, capital and goods. A
surplus often occurs in a budget, when expenses are less than the income taken in or in inventory when
fewer supplies are used than were retained. Economic surplus is related to supply and demand. A
surplus is the amount of an asset or resource that exceeds the portion that is utilized. A surplus is used
to describe many excess assets including income, profits, capital and goods. A surplus often occurs in a
budget, when expenses are less than the income taken in or in inventory when fewer supplies are used
than were retained. Economic surplus is related to supply and demand.
The temporal aspect, or temporality, of any fact or information. Several temporal dimensions
can be defined, such as valid time, describing when the fact or the information is true in the real word,
and transaction time, describing when the fact or the information is current in the database
management system (DBMS).
Unemployment is a phenomenon that occurs when a person who is actively searching for
employment is unable to find work. ... The most frequently measure of unemployment is the
unemployment rate, which is the number of unemployed people divided by the number of people in the
labor force. Unemployment is a phenomenon that occurs when a person who is actively searching for
employment is unable to find work. Unemployment is often used as a measure of the health of the
economy. The most frequently measure of unemployment is the unemployment rate, which is the
number of unemployed people divided by the number of people in the labor force.
Unemployment is defined as a situation where someone of working age is not able to get a job but
would like to be in full-time employment.
Unemployment is defined as a situation where someone of working age is not able to get a job
but would like to be in full-time employment.
Wealth measures the value of all the assets of worth owned by a person, community, company
or country. Wealth is determined by taking the total market value of all physical and intangible assets
owned, then subtracting all debts. Essentially, wealth is the accumulation of resources. Specific people,
organizations and nations are said to be wealthy when they are able to accumulate many valuable
resources or goods.
Food security [is] a situation that exists when all people, at all times, have physical, social and
economic access to sufficient, safe and nutritious food that meets their dietary needs and food
preferences for an active and healthy life