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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 ...
Non-financial assets, such as land and buildings, may also be included. For example, dictionary definitions of money include "wealth reckoned in terms of money" and "persons or interests possessing or controlling great wealth", [8] neither of which correspond to the economic definition.
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.
At the micro-economic level, deleveraging refers to the reduction of the leverage ratio, or the percentage of debt in the balance sheet of a single economic entity, such as a household or a firm. It is the opposite of leveraging , which is the practice of borrowing money to acquire assets and multiply gains and losses.
Economic growth is sometimes seen as a driver for overconsumption due to a growing economy requiring compounding amounts of resource input to sustain the growth. China is an example where this phenomenon has been observed readily. China’s GDP increased massively from 1978, and energy consumption has increased by 6-fold. [14]
In a reverse example, the smaller firm will know immediately if people begin to request other products, and be able to respond the next day. A large company would need to do research, create an assembly line, determine which distribution chains to use, plan an advertising campaign, etc., before any changes could be made.
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 Four Basic Sectors refers to the current stage of sector evolution, in the sequence of four undergone transformations, namely agriculture, industry, services and GWU (government, welfare and unemployment) The US economy has become one of the most mature (with Japan and Western Europe) in terms of its sector evolution. [3]