What Is Economic Forecasting? Economic forecasting is the process of attempting to predict the future condition of the economy using a combination of important and widely followed indicators. Economic forecasting involves the building of statistical models with inputs of several key variables, or indicators, typically in an attempt to come up with a future gross domestic
What Is Economic Growth? Economic growth is an increase in the production of economic goods and services in one period of time compared with a previous period. It can be measured in nominal or real (adjusted to remove inflation) terms. Traditionally, aggregate economic growth is measured in terms of gross national product (GNP) or gross domestic
What Is an Economic Growth Rate? An economic growth rate is the percentage change in the value of all of the goods and services produced in a nation during a specific period of time, as compared to an earlier period. The economic growth rate is used to measure the comparative health of an economy over
What Is Economic Integration? Economic integration is an arrangement among nations that typically includes the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. Economic integration aims to reduce costs for both consumers and producers and to increase trade between the countries involved in the agreement. Economic integration is sometimes referred to as
What Is Economic Justice? Economic justice is a component of social justice and welfare economics. It is a set of moral and ethical principles for building economic institutions, where the ultimate goal is to create an opportunity for each person to establish a sufficient material foundation upon which to have a dignified, productive, and creative life.
What Is an Economic Man? The term “economic man” (also referred to as “homo economicus”) refers to an idealized person who acts rationally, with perfect knowledge, and who seeks to maximize personal utility or satisfaction. The presence of an economic man is an assumption of many economic models. Key Takeaways The economic man is a
What Is Economic Profit? An economic profit is the difference between the revenue received from sales and the explicit costs of producing its goods and services, as well as any opportunity costs. Opportunity costs are a type of implicit cost determined by management and will vary based on different scenarios and perspectives. Key Takeaways Economic profit
What Was the Economic Recovery Tax Act of 1981? The Economic Recovery Tax Act of 1981 (ERTA) was the largest tax cut in U.S. history. Signed by President Ronald Reagan about six months after he took office, ERTA slashed the top income tax rate and allowed for faster expensing of depreciable assets. It included incentives
What Is an Economic Refugee? An economic refugee is a person who leaves his or her home country in search of better job prospects and higher living standards elsewhere. Economic refugees see little opportunity to escape poverty in their own countries and are willing to start over in a new country for the chance at a better
What Is Economics? Economics is a social science that focuses on the production, distribution, and consumption of goods and services, and analyzes the choices that individuals, businesses, governments, and nations make to allocate resources. Key Takeaways Economics is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively.The two
