Paul Boyce

Paul is a Business Economics graduate from the UK and currently an editor at Boycewire

ETF Definition

ETF Definition

Exchange-traded funds, known as ETFs, is an investment fund which offers shares on the stock-market. Generally, ETFs specialize in indexes such as the FTSE 100.

Stagnation Definition

In economics, stagnation is where a nation experiences an extended period of low economic growth. This occurs when real economic growth fails to exceed 2 percent.

Relative Poverty Definition

Relative Poverty Definition

Relative Poverty occurs when households earn less than 60 percent of the average wage. This means that they have an income, but are unable to buy anything but basics.

Tragedy of the Commons Definition

The Tragedy of the Commons Definition

The tragedy of the commons is where shared resources are over-exploited because each individual is following their own self-interest. If each individual only took a limited quantity, there would be enough for everyone. However, due to the self-interest of the individual, many over-exploit the resource and leave nothing left for anyone – hence the tragedy.

Asymmetrical Information Definition

Asymmetric Information Definition

Asymmetric information or information asymmetry is where one party in a transaction has more information than the other. In other words, the seller of a good may know more about its true worth than the consumer of that good.

Frictional Unemployment Definition

Frictional Unemployment Definition

Frictional unemployment occurs in the period between leaving one job and joining another. In other words, the individual is left unemployed for a certain period as they transition into their new role.

Rational Choice Theory Definition

Rational Choice Theory Definition

Rational choice theory is a concept that assumes people make rational choices which align to their own self-interest. Each individual is said to weigh up the cost and benefits and come to a rational choice.

Floating Exchange Rate Definition

Floating Exchange Rate Definition

A floating exchange rate is where the value of a nation’s currency, when compared to another, is determined by supply and demand. There are millions of traders across the world who buy and sell currencies which helps dictate its value in relation to others.