Found 5 Articles for General Economics

Peace Dividend

Praveen Varghese Thomas
Updated on 28-Apr-2023 09:46:55


Introduction The government should allocate funds in such a way that it benefits the economy for a long term. On that note, the term peace dividend has garnered much attention in international and domestic circles. As wars create disruption to the country as well as economy at large, instead of splurging money on military restoration, the government diverts those funds to construct the economy and welfare at large. In simple words, this concept revolves around the idea of how military funds used for economic purposes. Definition of Peace Dividend The term "peace dividend" was first ... Read More

Frictional Unemployment

Praveen Varghese Thomas
Updated on 26-Apr-2023 17:26:07


Introduction Unemployment is a major issue that affects economies worldwide. While there are many types of unemployment, frictional unemployment is a unique form caused by increased job searching. If the companies are able to figure out the quitting reasons, they can scale up the employee retention rate.  Frictional Unemployment Although frictional unemployment can be seen as a positive turn of events for the economy, it has the negative side as well like rise in unemployment rate, reduced money circulation in the economy, etc. Define Frictional Unemployment The gap between fresh employees joining for the first time and ... Read More

Free Rider Problem

Praveen Varghese Thomas
Updated on 26-Apr-2023 17:19:13


Introduction The free rider problem occurs when individuals benefit from a shared resource or public good without contributing their fair share Are you sick of making all the effort while others profit? Do you ever feel like you're being taken advantage of at work, school, or in relationships? Fig 1: Free Rider Problem You may be dealing with the free rider issue if this is the case. It's an aggravating condition that can breed hatred, lack of motivation, and, eventually, a breakdown in cooperation. But why is there a problem with free riders, and what can be ... Read More

Fiscal Consolidation

Praveen Varghese Thomas
Updated on 26-Apr-2023 17:11:13


Introduction If the government spends more than the available funds in the account, it goes into fiscal deficit. The respective government determines the total outlay at the end of the financial year. Fiscal deficit can be computed by subtracting total revenue from total expenditure. Fig 1: Government spending on multiple categories This value throws a light on government spending and projects the financial health of the economy on a whole. Situations like these occur due to high unemployment, uncollected loans lend to business at the time of financial crunch, recession, global market crash, etc. Define Fiscal Consolidation Fiscal ... Read More

Fed Hike

Praveen Varghese Thomas
Updated on 26-Apr-2023 16:55:57


Introduction Fed hike refers to the Federal Reserve's decision to increase interest rates, which can significantly affect the economy and financial markets. This tutorial overviews the Fed hike and its impact on inflation and financial products. The Federal Reserve's decision to raise interest rates can significantly impact the economy, affecting everything from borrowing costs to consumer spending. Many individuals and businesses wonder how the recent announcement of a possible interest rate increase will affect their financial plans and objectives. Define Fed Hike An increase in the benchmark interest rate set by the Federal Reserve is referred to as a ... Read More