Category: Dictionary

The magic hexagon of economic policy is based on the four quantitative goals of the magic square, which are expanded by two qualitative goals for the magic hexagon. The focus is on freedom, security, justice and prosperity. The defense against dangers caused by environmental pollution and climate change as well as a fair distribution of…

The wage share (LQ) is a key figure from economics and stands for the share of national income that is formed solely by employee wages and is therefore a measure of income distribution in functional terms. Depending on whether taxes and social security contributions are taken into account in the calculation, a distinction can be…

A performance society is geared towards making performance worthwhile. Those who do more should also get more. Many members of a performance society take this principle as an opportunity to increase their own performance. In addition to a better income, a performance society also aims to get more power, a better social reputation and higher…

The oligopoly is a type of market that is relatively common in practice. In a supply oligopoly, few suppliers face a relatively high number of buyers. The opposite is the case with a demand oligopoly, because here there are few demanders who can fall back on a large number of providers. A bilateral oligopoly exists…

The planned economy (also called central administration economy) is a form of economy in which all essential decisions with regard to the allocation of scarce resources for the production of goods and services are made by the state or a central authority. The concept of the planned economy is diametrically opposed to that of the…

The business cycle describes the more or less even sequence of the individual economic phases upswing, boom, downswing and low phase. The business cycle of an economy can be seen graphically as a kind of wave movement across the time axis, the highs and lows of which are sometimes more and sometimes less pronounced. In…

A state pursues economic policy when it wants to support its own national economy. The economic measures are aimed at achieving improved economic growth and stabilizing the price level. A functioning economic policy is characterized by a high level of employment and a stabilization of the external balance. In this post we will deal with…

In economics and in particular in the field of microeconomics, polypol is a form of market in which a large number of market participants face each other on the supply and / or demand side. The corresponding situations are known as the supply or demand polypole. If there are many market participants on both sides,…

The economic phases represent the current situation of the overall economic situation based on the level of the real gross domestic product. A distinction is made between the four phases of upswing, boom, downswing and low phase. The change in economic phases is shown as a graphic, characterized by a wave-like change over time. In…

The term economic indicators summarizes key figures with the help of which the development of an economy can be represented or described over a certain period of time. They provide numerical values ​​and comparative series for forecasting, describing and analyzing an economy. Business indicators: leading indicators, presence indicators & lagging indicators In this lesson we…

Keynesianism is a school of thought from economics, which goes back to the economist John Maynard Keynes (1883-1946). The theories of Keynesianism are essentially based on Keynes’ 1936 published book “General Theory of Employment, Interest and Money”. The school of thought itself emerged in the course of the criticism of the neoclassical and is often…

Inflation is a sustained increase in the price level for goods and services, which is accompanied by a corresponding inflation and a loss of purchasing power. Depending on the trigger, the level of the inflation rate and the awareness of the market participants, different forms of inflation can be distinguished from one another. In this…

With the prohibitive price, the economic price is determined at which a seller does not sell any goods. The quantity requested corresponds to the value zero. Goods that are offered at this price do not make consumers willing to pay. Prohibitive price This lesson covers the prohibitive price. You will find out what the prohibitive…

Hyperinflation is an extremely strong form of inflation. The inflation rate in the period of hyperinflation is 50% and more. The price level is rising at a very rapid pace, the currency of the national economy is losing its hold. This reduces the purchasing power of the citizens. The only possible countermeasure is currency reform….

The boom ( “Boom” ) is an economic cycle as part of the economic cycle. Essential characteristics of the boom are full employment, production at the limit of capacity, strong demand and rising prices. This is why it is also known as a boom. In terms of the business cycle, the boom is the turning…

Real income is an indicator that shows purchasing power taking inflation into account. It therefore describes the amount of goods that can be purchased on the market with the nominal income. In this lesson we explain the meaning of real income and the real wage index and how they are calculated. Following this lesson, we…

Trade barriers are economic measures that make the exchange of goods and services more difficult. In particular, trade between two different economies is inhibited. A distinction is made between tariff and non-tariff trade barriers. This lesson covers the barriers to trade. You will get to know the meaning of trade barriers and we will show…

Demand inflation is when the price increase associated with inflation is due to a significant change in demand. Four types of demand inflation can be distinguished from one another. What they all have in common is that they can be dealt with by means of contractive measures. In this lesson we explain the main characteristics…

According to sportingology, the hallmark of Giffen goods is that as prices rise, so does the demand for these goods. This contradicts the actual market conditions. If a company wants to sell a new product, it sets a sales price. If the demand is too low, the company lowers the price. If more consumers want…

According to theinternetfaqs, the demand monopoly is a market form and at the same time a variant of the monopoly. In the case of a monopoly of demand, several suppliers face a single customer. In this lesson, we explain the most important features of the demand monopoly, the behavior of the individual market participants and,…

The term “income” summarizes all income that the natural and legal persons of an economy receive at regular intervals. A household’s asset includes all tangible and intangible goods that are of value to the owner. A fair distribution of income and wealth can only be achieved in an economy if certain aspects are taken into…

The demand oligopoly is a variant of the oligopoly. It is characterized by the fact that many providers want to sell their products, with the demand being low. The challenge of a demand oligopoly is to arouse customers’ interest in buying. This is often only possible through lower prices. The market form can often be…

The recession is an economic phase during which the economic performance of an economy continuously declines. This phase is primarily characterized by falling order numbers, rising unemployment and a generally more pessimistic climate. The recession is preceded by the boom and it itself leads to the depression. In this lesson we explain the most important…

The nominal gross domestic product evaluates the production of goods and services that were produced within a period and within a country at the currently valid market prices. The total value is made up of the amount of goods and services produced as well as their prices. In this lesson we introduce you to the…

According to healthknowing, the real gross domestic product is a variant of the gross domestic product (GDP), which is independent of price fluctuations. The real gross domestic product can thus be described as the gross domestic product with constant prices. In this lesson we explain the importance of the real domestic product, its calculation and…

A market economy is an economic order in which both planning and control of all economic processes are coordinated via markets with the help of price mechanisms. The task of the state lies primarily in the definition of suitable framework conditions with the help of which the competition can be coordinated in a meaningful way….

The money supply is the entire money supply of an economy. The money stock means the cash and book money that is in the possession of non-banks. All public administrations, companies and private citizens are considered non-banks. The money that is managed by the banks does not play a role in determining the amount of…

With open inflation, every market participant can see the rise in the general price level. This term is mainly used in connection with or to differentiate it from hidden inflation. Open inflation is the rule of inflation, at least in Germany, as the inflation rate is measured permanently. In this lesson we explain the concept…

Galloping inflation is a type of inflation that is particularly evident. The price level rises rapidly, while at the same time the value of money decreases rapidly. In this lesson we will show you the main characteristics of galloping inflation, typical reactions of market participants and give you an impression of their effects on an…