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 …
Perfectly competitive market Perfect competition, also known as a perfectly competitive market or pure competition is a hypothetical market where competition is at its greatest possible level. It comes about when there is a very large number of firms or producers that produce a homogeneous product. An individual firm in perfect competition …
What is a monopoly? Monopoly meaning The word monopoly is derived from two words, Mono and Poly. Mono stands for single while Poly stands for the seller. Joining the two words means the single seller. In this situation, only one firm or a group of firms that are combined has control over …
What is a market? A market refers to the sum total of all buyers and sellers within a considerable area or region. It is the coming together of buyers and sellers with the purpose of facilitating the exchange or transaction of goods and services known as trade. A market involves two parties, …