What is Market Structure? Market structure, in economics, refers to how different industries are classified and differentiated based on their degree and nature of competition for goods and services. It is based on the characteristics that influence the behavior and outcomes of companies working in a specific market. Some of the factors that determine a…
What is a Private Good? A private good is an item that is purchased for the benefit or utility of the buyer. When a person consumes the private good, he/she restricts another party from using it. Generally, a good is expressed as private if there is a rivalry between individuals trying to acquire it and…
What is Cross-Price Elasticity? Cross-price elasticity measures how sensitive the demand of a product is over a shift of a corresponding product price. Often, in the market, some goods can relate to one another. This may mean a product’s price increase or decrease can positively or negatively affect the other product’s demand. Understanding Cross-Price Elasticity…
What is Dominant Strategy? The dominant strategy in game theory refers to a situation where one player has superior tactics regardless of how their opponent may play. Holding all factors constant, that player enjoys an upper hand in the game over the opposition. It means, regardless of the strategies employed by the opponent, the dominant…
What is an Inefficient Market? An indicator of an inefficient market is when a specific security price at any particular time does not reflect its true value. This market functions differently from the efficient markets hypothesis. For example, when new information from a recent event occurs, an efficient market would quickly disperse this information to…
What is Collusion? Collusion is primarily an illegal secretive agreement or cooperation between two parties intending to disrupt market stability. Generally, individuals or companies who normally compete against each other decide to work together and influence the market to achieve competitive market advantage. An example is when colluding businesses conspire to control the supply of…
Introduction to Chart Types in Tableau Tableau is a world leader in creating beautiful, professional visuals. But equally exciting is its customizability, which allows users to create a wide range of complex visuals in just a few steps. To offer its impressive customization features, Tableau comes with several complex options for creating visuals that are…
What is Marginal Social Benefit? Marginal social benefit is the satisfaction experienced by consumers of a specific good plus or minus the overall environmental and social costs or benefits. For example, if positive externalities of consumption are present, marginal social benefits are larger than marginal private benefits. However, if negative externalities of consumption such as…
What is Jobs Growth? Jobs growth is a statistic that is published and measured by the United States Bureau of Labor Statistics. It measures the amount of new nonfarm payroll employment created monthly in the U.S. The statistic is reported in an employment situation summary published by the Bureau of Labor Statistics. The summary also…
What is the Federal Reserve Board (FRB)? The Federal Reserve Board (FRB), also referred to as the Federal Reserve System’s Board of Governors, is the main governing body of the Federal Reserve System. The FRB is in charge of overseeing the implementation of monetary policy in the United States and overseeing the Federal Reserve Banks….
