What is Input-Output Analysis? Input-output analysis is a type of economic model that describes the interdependent relationships between industrial sectors within an economy. It shows how the outputs of one sector flow into another sector as inputs. Wassily Leontief, who was a Soviet-American economist, developed the input-output analysis method, earning him the Nobel Prize in…
What is the Job Market? Rather than a physical marketplace, the job market is where the supply (individuals who are actively seeking jobs) and demand (businesses) of the labor force, as well as other factors, interact. The factors include the economic activity level, industry trends, the need for certain skill sets or education level, etc….
What is an Inflection Point? In mathematics, an inflection point refers to the point at which the curvature of a function changes its sign. In the business world, the meaning of inflection point is stretched to describe the turning point due to any dramatic change that may lead to a positive or negative result. Inflection…
What is the Industrial Goods Sector? In contrast to the consumer goods sector that produces goods and services directly consumed by households, the industrial goods sector provides capital goods to other businesses for manufacturing and construction. The sub-sectors include aerospace and defense, homebuilding, electric equipment, machinery, construction and engineering, distributors, etc. The industrial goods sector…
What is a Data Lake? A data lake refers to a central storage repository used to store a vast amount of raw, granular data in its native format. It is a single store repository containing structured data, semi-structured data, and unstructured data. A data lake is used where there is no fixed storage, no file…
What is Variance? Variance refers to the expected deviation between values in a specific data set. It measures the spread of each figure from the average value. Traders and market analysts often use variance to project the volatility of the market and the stability of a specific investment return within a period. Mostly, variance is…
What is Supply? Supply is a term in economics that refers to the number of units of goods or services a supplier is willing and able to bring to the market for a specific price. The willingness and ability to avail products to the market are influenced by stock availability and the determiners driving the…
What is Utility Maximization? Utility maximization is a strategic scheme whereby individuals and companies seek to achieve the highest level of satisfaction from their economic decisions. For example, when a company’s resources are limited, management will implement a plan of purchasing goods or services that provides the maximum benefit. The concept of utility maximization was…
What is Taxation? Taxation refers to the fees and financial obligations imposed by a government on its residents. Income taxes are paid in almost all countries around the world. However, taxation applies to all payments of mandatory levies, including on income, corporate, property, capital gains, sales, and inheritance. Taxation is involuntary; hence it does not…
What are Consumer Surplus and Producer Surplus? Both consumer surplus and producer surplus are economic terms used to define market wellness by studying the relationship between the consumers and suppliers. They explain the opportunity cost consumers forego to gain a marginal benefit for buying a good or service. To the producer, it is the willingness…
