What is the difference between deflation and disinflation?

July 8, 2024 No Comments

A: Deflation is a decrease in general price levels of throughout an economy. If there is a higher supply of goods and services but there is not enough money supply to combat this, deflation can occur. Deflation is mainly caused by shifts in supply and

What is the difference between economic value and market value?

July 8, 2024 No Comments

A: The difference between market value and economic value is that the former represents the minimum amount the customer is willing to pay for an asset while the latter represents the maximum amount that the customer is willing to pay. They are different valuations based

What is the difference between fiat money and legal tender?

July 8, 2024 No Comments

A: Fiat money does not have any intrinsic value. What value it has depends on public confidence in the currency’s issuer. Legal tender is any currency declared legal by a government. Many governments issue a fiat currency and then make it legal tender by setting

What is the difference between fiat money and representative money?

July 8, 2024 No Comments

A: Fiat money is physical money (paper money and coins), while representative money is something that represents intent to pay the money such as a check. Fiat money is backed by the government, and representative money can be backed by different things. For example, a

What is the difference between frictional unemployment and structural unemployment?

July 8, 2024 No Comments

A: Structural unemployment and frictional unemployment are two different types of unemployment that occur in an economy. Frictional unemployment is always seen in an economy and occurs during the period when workers are searching for jobs. Conversely, structural unemployment is caused by shifts in the

What is the difference between horizontal integration and vertical integration?

July 8, 2024 No Comments

A: When a company wishes to grow through a horizontal integration, it is looking to acquire a similar company in the same industry. It may be seeking to increase its size, diversify its product offerings or services, achieve economies of scale, reduce competition, or gain access to

What is the difference between induced consumption and autonomous consumption?

July 8, 2024 No Comments

A: The first step to determining the difference between autonomous and induced consumption is to look at what each of these terms mean. The key difference between autonomous consumption and induced consumption lies in the factor of income. Autonomous Consumption Autonomous consumption is defined as

What is the difference between inelasticity and elasticity of demand?

July 8, 2024 No Comments

A: Inelasticity and elasticity of demand refer to the degree to which supply and demand respond to a change in another factor, such as price, income level or substitute availability. If the change in demand for a given product corresponds closely to a change in one

What is the Difference Between International Monetary Fund (IMF) and the World Bank?

July 8, 2024 No Comments

A: The primary difference between the International Monetary Fund (IMF), and the World Bank lies in their respective purposes and functions. The IMF exists primarily to stabilize exchange rates, while the World Bank’s goal is to reduce poverty. Both organizations were established as part of the

What is the difference between JIT (just in time) and CMI (customer managed inventory)?

July 8, 2024 No Comments

A: Just-in-time (JIT) inventory management focuses solely on the need to replenish inventory only when it is required, reducing costs associated with inventory on hand. Customer-managed inventory (CMI) management uses the same principles as JIT inventory, but it allows customers to order their own inventories

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