What is Employment Insurance (EI)? Employment Insurance (EI) is relief provided by the Government of Canada to those who become unemployed or are unable to work due to certain circumstances such as illness, pregnancy, caring for a family member, etc. It acts as temporary financial support and also includes support for unemployed individuals to look…
What is the Implied Rate? The implied rate is an interest rate that expresses the difference between the forward/future rate and the spot rate. It serves as a useful tool for comparing returns across different assets and can be applied to any scenario that involves a forward or futures contract. Understanding Implied Rates Forward/Futures Contracts…
What is Import Duty? Import duty is the tax imposed on goods that are imported from other countries. Duties are determined by a number of factors, including the value, origin, and type of the goods. They are established and become a source of revenue for the government, as well as to protect domestic producers from…
What is the Economy? The economy is the production, consumption, trade, and distribution of goods and services. Every economy is characterized by its own unique values, culture, education as well as legal and political systems. When referring to an economy, it is also important to consider supply and demand, as well as the labor and…
What is Econometrics? Econometrics is an area of economics where statistical and mathematical methods are used to analyze economic data. Individuals who are involved with econometrics are referred to as econometricians. Econometricians test economic theories and hypotheses by using statistical tools such as probability, statistical inference, regression analysis, frequency distributions, and more. After testing economic…
What is Cross Liability Coverage? Cross liability coverage is a feature of insurance contracts covering multiple customers represented in the form of a clause on commercial insurance policies. It allows each party to be seen and treated as if they own separate policies, thus allowing them to gain coverage in the event that a claim…
What is Incremental Cost? Incremental cost is the additional cost incurred by a company if it produces one extra unit of output. The additional cost comprises relevant costs that only change in line with the decision to produce extra units. Certain costs will be incurred whether there is an increase in production or not, which…
What is the Pareto Principle? The Pareto principle, also known as the 80/20 rule, was one of Vilfredo Pareto’s most noteworthy theories, which found that 80% of outcomes often come from 20% of the related inputs. Pareto was an Italian economist in the 19th and 20th centuries who helped develop modern economics as we know…
