What is the balance of payments (BOP)? The balance of payments refers to a statement or record that provides information regarding all the transactions that took place between a country and the entire world over a definite period of time. This period of time can be quarterly or yearly. In other words, …
Depreciation meaning What is depreciation in accounting? The term depreciation in accounting refers to the method a company uses in the allocation of the cost of a tangible or physical asset over its life expectancy or useful life. It is a representation of the rate at which the value of an asset …
What is monopolistic competition? Monopolistic competition is a market structure whereby there are many sellers or firms in the market or industry that offer similar products or services but not perfect substitutes. In other words, these many firms offer similar commodities but these commodities are not homogeneous or identical. The reason why …
What is the unemployment rate? The unemployment rate refers to the proportion of the workforce that does not have a job. In other words, it is the percentage of unemployed people in the economy among those that are in the labor force. It is a lagging indicator which means that it generally …
What is book value? The book value of an asset refers to the net difference between a company’s total assets and its total liabilities where it is the representation of the total value of a company’s assets that shareholders will receive when the company liquidates. It is equal to the cost of …
What is market value? A market value in accounting refers to the price an asset can fetch in the marketplace. It can imply the investment given to specific equity or a business. Another name for a market value is open market valuation (OMV). Oftentimes, a market value is used to refer to …
What is an oligopoly? The word oligopoly originated from two Greek words, oligi which means few, and polein which means to sell. It, therefore, refers to a market structure whereby there are few firms that produce and sell homogeneous or differentiated products. Under this market structure, the or sellers are few but …
In an economy, there are different types of unemployment and they come about due to several factors. This article explains the causes of unemployment and how they result in different types of unemployment and their negative effects on an economy. What is unemployment in economics? Unemployment in economics refers to a situation …