Absolute Advantage Concept It’s said that a country has an absolute in the production of a certain good if it’s more efficient in the production of that same good, this is if it can produce bigger quantity for each factor unit of the production used. However, according to the Comparative Advantage Law, developed by David […]

Added Value Concept: In economy, the expression added value designates the difference between the value of produced goods and the costs of…

Comparative Advantages Concept: It’s said that a country has a comparative advantage (or relative advantage) in the production of a certain good if…

Economic Variable Concept: The term “variable” designates a greatness that can be defined and measured. When we speak about economic variables…

Velocity of Money Concept: Velocity of Money (or speed of money circulation), concept created in the beginning of the 19th century by…