The Multiplier

The Multiplier
The Multiplier is one of the major components of Keynesian
analysis and policy. The multiplier effect can be defined as the
greater resulting income generated from an initial increase in
spending. (For example, an increase in spending of $100 will generate a
total increase in income received of $500 as the initial income is respent
by each succeeding recipient—these figures are based on an assumption
that each income receiver spends 80 percent of his additional income and
saves 20 percent, the formula being Multiplier = 1 / percent change in
saving.)

Price gouging

Price gouging—charging higher prices under emergency conditions—
evokes strong emotional responses that are understandable
but terribly wrongheaded.

Entrepreneurship

Entrepreneurship can be defined as acting on perceived opportunities
in the market in an attempt to gain profits. This acting
involves being alert to profit possibilities, arranging financing,
managing resources and seeing a project through to completion. Entrepreneurs
can be regarded as heroic characters in the economy as they
bear the risks involved in bringing new goods and services to the consumer.

Types of assets

 Types of assets
Asset type Including
Physical -Productive assets such as:
• farm equipment
• seeds
• tools
• sewing machines
• vehicles
Natural- Agricultural and grazing land
Water resources
Timber
Fish
Human- Labour power within a household
Education
Skills
Vocational training
Financial -Wages
Access to credit
Savings
Social- Kinship structures
Religious groups
Neighbourhood associations
Political -Citizenship
Access to political leaders
Recourse to a functioning legal system
Personal safety.

embodied technical progress

embodied technical progress 
Improvements in technical knowledge which can be exploited only byinvestment in new equipment; technical improvements are embodied in the equipment. Embodied technical progress is contrasted withdisembodied technical progress, where new knowledge can be exploited with unchanged equipment. In practice many innovations require partial but not total replacement of equipment for their utilization, so the embodiment of technical progress is a matter of degree.

disembodied technical progress

disembodied technical progress 
Improvements in technical knowledge that allow more output to be obtained from given inputs without the need to invest in new equipment. Disembodied technical progress is contrasted with embodied technical progress, where improved techniques can be exploited only by investing in new equipment embodying the new knowledge. Most real world innovations require for their utilization that some but not all the capital equipment used be replaced; whether a given innovation is embodied or disembodied is thus a matter of degree.

bubble economy

term for an economy where the presence of one or more bubbles in its asset markets is a dominant feature of its performance.Japan was said to be a bubble economy in the late 1980s .

Positive and Normative Economics

Positive and Normative Economics
Positive economics: how the economy works
Can be true or false
Can be tested by looking at the facts
Normative economics: what should be
Value judgments, identify problems, and prescribe solutions
Cannot be proved or disproved by the facts alone