What Is an Either-Way Market? An either-way market refers to situations where there appears to be a roughly equal chance for a market to move up as there is for the market to move down. Either-way markets are temporary situations and can refer to the market as a whole or individual investments such as stocks.
What Is Elastic? Elastic is a term used in economics to describe a change in the behavior of buyers and sellers in response to a change in price for a good or service. In other words, demand elasticity or inelasticity for a product or good is determined by how much demand for the product changes as the price increases
What Is Elasticity? Elasticity is a measure of a variable’s sensitivity to a change in another variable, most commonly this sensitivity is the change in quantity demanded relative to changes in other factors, such as price. In business and economics, price elasticity refers to the degree to which individuals, consumers, or producers change their demand or
What Is an Election Period? An election period is a period during which an investor who owns an extendable or retractable bond, or the issuer of those bonds, must indicate whether or not they will exercise their option to extend or retract those bonds. An extendable bond is a long-term debt security that includes an option
What Is Electronic Benefits Transfer (EBT)? Electronic benefit transfer is a card-based system similar to a debit card that allows recipients of government assistance such as food stamps to pay retailers directly for their purchases. State governments provide benefits and track their use via the EBT system. Key Takeaways Through the EBT program, recipients of
Economic stimulus is action by the government to encourage private sector economic activity. To stimulate the economy, the government adopts targeted, expansionary policies. Economic stimulus may be related to monetary policy carried out by the Federal Reserve. Other forms of economic stimulus are driven by fiscal policy, with lawmakers directing tax policies and government spending
What Is an Economic Tsunami? An economic tsunami is a widespread set of economic troubles caused by a single significant event. The downstream effects of economic tsunamis generally spread to broad geographic areas, multiple industry sectors, or both. Key Takeaways An economic tsunami is a widespread set of economic troubles caused by a single significant
What Is Economic Value? Economic value is the value that person places on an economic good based on the benefit that they derive from the good. It is often estimated based on the person’s willingness to pay for the good, typically measured in units of currency. The economic value should not be confused with market
What Is the Economic Value of Equity (EVE)? The economic value of equity (EVE) is a cash flow calculation that takes the present value of all asset cash flows and subtracts the present value of all liability cash flows. Unlike earnings at risk and value at risk (VAR), a bank uses the economic value of equity to manage
What Are Economies of Scale? Economies of scale are cost advantages reaped by companies when production becomes efficient. Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods. Costs can be both fixed and variable. Key Takeaways Economies of scale are
