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Also called resource cost advantage. The ability of a party (whether an individual, firm, or country) to produce a greater quantity of a good, product, or service than competitors using the same amount of resources. absorption The total demand for all final marketed goods and services by all economic agents resident in an economy, regardless of the origin of the goods and services themselves ...
Welfare economics is a branch of economics that uses microeconomic techniques to evaluate economic well-being, especially relative to competitive general equilibrium, with a focus on economic efficiency and income distribution. [13] In general usage, including by economists outside the above context, welfare refers to a form of transfer payment ...
In economics, nonmarket forces (or non-market forces) are those acting on economic factors from outside a market system.They include organizing and correcting factors that provide order to markets and other societal institutions and organizations, as well as forces utilized by price systems other than the free price system.
Damage "does not necessarily imply total loss of system functionality, but rather that the system is no longer operating in its optimal manner". [1] Damage to physical objects is "the progressive physical process by which they break", [2]: 1. and includes mechanical stress that weakens a structure, even if this is not visible. [2]: ix.
Non-economic losses and damage contain loss of family members and disappearance of cultures. [12] The main difference between the two is that non-economic losses involve things that are not commonly traded in markets. [3] Climate reparations are loss and damage payments which are based on the concept of reparations.
The arbitrary definition of the tail region as beyond three standard deviations may also be broadened, such as the SKEW index which uses the larger tail region starting at two standard deviations. Although tail risk cannot be eliminated, its impact can be somewhat mitigated by a robust diversification across assets, strategies, and the use of ...
This is in part due to the difficulty of measuring the financial damage in areas that lack insurance. For example, the 2004 Indian Ocean earthquake and tsunami, with a death toll of around 230,000 people, cost a 'mere' $15 billion, [1] whereas in the Deepwater Horizon oil spill, in which 11 people died, the damage was six times higher.
Different economists have different views about what events are the sources of market failure. Mainstream economic analysis widely accepts that a market failure (relative to Pareto efficiency) can occur for three main reasons: if the market is "monopolised" or a small group of businesses hold significant market power, if production of the good or service results in an externality (external ...