What Is Deadweight Loss? A deadweight loss is a societal cost caused by market inefficiency. It arises when supply and demand are out of balance. A deadweight loss is a term most commonly used in economics. However, it may be applied to any shortcoming created by poor resource allocation. Ultimately, […]
Economics
52 posts
What Is a Normal Good? A normal good is one that has an increase in demand owing to an increase in consumer income. In other words, a rise in wages leads to an increase in demand for normal goods. On the other hand, a decrease in pay or a layoff […]
What Is Pegging? What is pegging? In economics, pegging is the act of linking the value of an asset or currency to the value of another asset or currency establishing a fixed exchange rate. In general, the term refers to the practice of attaching or tying a country’s currency exchange […]
IFC News – What Is International Finance Corporation (IFC)? IFC news refers to global media coverage of International Finance Corp., an affiliate of the World Bank. The organization provides financing for private-enterprise investment in developing countries across the globe through loans and direct investments. International Finance Corp. is affiliated with […]
What Is the Crowding Out Effect? The crowding out effect is an economic premise asserting that government spending competes with, thereby reducing or eliminating private spending. When governments have budget deficits, they usually have to borrow money to cover them. When governments borrow, they compete with everyone else in the […]
What Is a Centralized Market? A centralized market is a system where orders are routed to a clearinghouse and buyers and sellers transact with the exchange and not each other. In finance, a centralized market is a financial network in which all orders are channeled to a single central exchange. […]