What is Demand Theory? Demand theory is a principle that emphasizes the relationship between consumer demand and the price for goods and services within a market. It can also be illustrated as the demand curve, which is downwards sloping in a horizontal manner, as the price of the good decreases as quantity increases. Vice-versa, where…
What is the Dependency Ratio? The dependency ratio compares the number of dependent individuals by age to the total population. Specifically, it measures people between the ages of 0 to 14 and above 65 to those who are 15 to 64. By doing so, it separates those who can and cannot work, which can indicate…
What is the Half-Year Convention for Depreciation? The half-year convention for depreciation assumes fixed assets have been in service for one-half of its first year despite when it was actually acquired. This rule is applied by tax authorities to restrict the maximum allowable claim for depreciation to one half of the annual amount. The other…
What is a Hard Currency? A hard currency refers to a currency that is generally issued by developed countries, globally traded, and seen as politically and economically stable. International investors put their confidence and trust in hard currencies because they will not dramatically depreciate or appreciate (fluctuate in relative value to other currencies). For the…
What is the Hanging Man Candlestick? The “hanging man” is a bearish financial candlestick pattern that represents a potential reversal in an uptrend. In particular, a hanging man pattern forms at the end of an uptrend. Due to the uptrend reaching its peak, a reversal is likely to occur. The hanging man candlestick pattern is…
What is Happiness Economics? Happiness economics is a study that uses econometric analysis to measure the relationship between individual satisfaction and economic issues. The factors measured in happiness economics include economic security, quality of work, quality of consumption, leisure time, relationships, environment, and freedom and control. Econometric analysis is the application of mathematical, statistical, and…
What is a Hammer Clause? A hammer clause (also referred to as a blackmail clause) is a clause relating to an insurance policy that allows the insurer to compel the insured to settle a claim. Settling a claim is much more beneficial than going to court because both parties involved avoid an assortment of different…
What is Hacktivism? Hacktivism refers to a social or political activist act that is performed by people known as “hacktivists.” Hacktivists attack by using a plethora of hacking methods that allow them to gain access to personal computers, where they can take control and gain private information. In most cases, hacktivism is not used for…
What is the Halo Effect? The halo effect (also referred to as the halo error) is a form of cognitive bias that occurs when a consumer demonstrates favoritism towards a company’s product line. Such favoritism is caused by positive brand experiences and creates brand loyalty. It is referred to as the halo effect to symbolize…
