Paul Boyce

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

What is Real GDP definition formula vs nominal GDP

Real GDP Definition

Real GDP is Gross Domestic Product (GDP) that accounts for inflation or deflation. In other words, it disregards the impact that higher prices have played in economic growth and allows us to compare the quantity of goods produced rather than the value.

Budget Surplus Definition

Budget Surplus Definition

A budget surplus is where government brings in more money than it spends. In other words, it receives more in taxes than it spends on defence, welfare, or education.

Coase Theorem Definition

Coase Theorem Definition

Coase theorem is the idea that under certain conditions, the issuing of property rights can solve negative externalities. For example, when a farmer…

Pygmalion Effect Definition

Pygmalion Effect Definition

The Pygmalion effect is where an individual’s performance is influenced by others’ expectations. In other words, higher expectations lead to higher performance.

Ceteris Paribus Definition

Ceteris Paribus Definition

Ceteris Paribus is a phrase used in economics that makes economic analysis simpler. In essence, Ceteris Paribus means other things equal’. With regards to economics, it assumes that other influencing factors are held constant.

Groupthink Definition

Groupthink Definition and Examples

Groupthink is the tendency for individuals to agree with each other in a group setting in order to conform and keep harmony. This can contribute to inefficient decision making as ideas and thoughts go unchallenged in favour of cohesion.

Regressive Tax Definition

Regressive Tax Definition

A regressive tax is where the tax rate falls for those who are in higher income brackets. In other words, lower-income households face a higher tax rate – as a percentage of their income – than higher-income groups.