What is the difference between Keynesian and Neo-Keynesian economics?

July 8, 2024 No Comments

A: Classical economic theory presumed that if demand for a commodity or service was raised, then prices would rise correspondingly and companies would increase output to meet public demand. Classical theory did not differentiate between microeconomics and macroeconomics. However, during the Great Depression of the

What is the difference between macroeconomics and finance?

July 8, 2024 No Comments

A: Economics is a broad category that encompasses both macroeconomics and finance. Macroeconomics refers to behaviors of large sections of markets, such as the unemployment rate of an entire country. The economics term finance is used to discuss the specific ways money is created and

What is the difference between marginal utility and marginal benefit?

July 8, 2024 No Comments

A: Marginal utility describes the benefit that one economic actor receives from consuming one additional unit of a good, while marginal benefit describes (in dollars) what the consumer is willing to pay to acquire one more unit of the good. Marginal benefit can be described

What is the difference between marginal utility and marginal value?

July 8, 2024 No Comments

A: Depending on the context, marginal utility and marginal value can describe the same thing. The key word for each is “marginal,” that is, the incremental change based on the per-unit shift in a good or service. This may sound complicated, but it really is

What is the difference between moral hazard and morale hazard?

July 8, 2024 No Comments

A: Morale hazard is an insurance term used to describe an insured person’s attitude about his belongings. It arises when the person does not care about his possessions because he knows he is insured. For example, suppose a person pays insurance for his new phone.

What is the difference between perfect and imperfect competition?

July 8, 2024 No Comments

A: Perfect competition is a microeconomics concept that describes a market structure controlled entirely by market forces. In a perfectly competitive market, all firms sell identical products and services, firms cannot control prevailing market prices, market share per firm is small, firms and customers have

What is the difference between positive and normative economics?

July 8, 2024 No Comments

A: The distinction between positive economics and normative economics may seem simple, but it is not always easy to differentiate between the two. Positive economics is objective and fact based, while normative economics is subjective and value based. Positive economic statements must be able to be tested and proved or disproved. Normative

What is the difference between price inelasticity and inelasticity of demand?

July 8, 2024 No Comments

A: These two measurements are interrelated, and are used in conjunction to understand market production and purchasing. Price elasticity of supply and elasticity of demand are both economic means of understanding price and demand sensitivity. Price elasticity expresses how much the price of a good

What is the difference between product differentiation and price discrimination?

July 8, 2024 No Comments

A: Product differentiation and price discrimination are two strategies used in marketing and economics. Product differentiation is the process used to distinguish one company’s goods and services from another company’s goods and services. Conversely, price discrimination is a strategy used to distinguish prices for the

What is the Difference Between Real and Nominal Interest Rates?

July 8, 2024 No Comments

A: A nominal interest rate is the interest rate that does not take inflation into account. It is the interest rate that is quoted on bonds and loans. The nominal interest rate is a simple concept to understand; for example, if you borrow $100 at

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