What Is Rational Choice Theory? Rational choice theory states that individuals use rational calculations to make rational choices and achieve outcomes that are aligned with their own personal objectives. These results are also associated with maximizing an individual’s self-interest. Using rational choice theory is expected to result in outcomes that provide people with the greatest
What Is Rational Expectations Theory? The rational expectations theory is a concept and modeling technique that is used widely in macroeconomics. The theory posits that individuals base their decisions on three primary factors: their human rationality, the information available to them, and their past experiences. The theory suggests that people’s current expectations of the economy
What Is Rationing? Rationing is the practice of controlling the distribution of a good or service in order to cope with scarcity. Rationing is a mandate of the government, at the local or federal level. It can be undertaken in response to adverse weather conditions, trade or import/export restrictions, or, in more extreme cases, during
Raúl Alarcón Jr. is a broadcasting mogul who oversees the Spanish Broadcasting System, one of the largest Spanish-language media companies in the United States. Alarcón is the company’s chief executive officer (CEO) and chairman. He joined the company, which was founded by his father Pablo, in its sales department in 1983. Commonly referred to as
What Are Raw Materials? Raw materials are materials or substances used in the primary production or manufacturing of goods. Raw materials are commodities that are bought and sold on commodities exchanges worldwide. Businesses buy and sell raw materials in the factor market because raw materials are factors of production. Key Takeaways Raw materials are the input goods or inventory
What Is the Reserve Bank of India (RBI)? The Reserve Bank of India (RBI) is the central bank of India, which began operations on Apr. 1, 1935, under the Reserve Bank of India Act. The Reserve Bank of India uses monetary policy to create financial stability in India, and it is charged with regulating the
What Is a Quota? A quota is a government-imposed trade restriction that limits the number or monetary value of goods that a country can import or export during a particular period. Countries use quotas in international trade to help regulate the volume of trade between them and other countries. Countries sometimes impose quotas on specific products to reduce
What Is Quotation? Quotations refer to the most recent sale price of a stock, bond, or any other asset traded. In addition, most asset classes also quote the bid and ask price that determines the final sale price. The bid is defined as the highest price a buyer is willing to pay for the assets, while the ask
What Is a Quote? A quote is the last price at which an asset traded; it is the most recent price that a buyer and seller agreed upon and at which some amount of the asset was transacted. The bid quote is the most current price and quantity at which a share can be bought.
What Is a Quoted Price? A quoted price is the most recent price at which an investment (or any other type of asset) has traded. The quoted price of investments such as stocks, bonds, commodities, and derivatives changes constantly throughout the day as events occur that affect the financial markets and the perceived value of
