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Economics

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Latest Definitions

earnings per share
Earnings Per Share
Earnings per share (EPS) is a financial ratio that represents the portion of a company’s profit allocated to each outstanding share of common stock.
debt to equity ratio
Debt to Equity Ratio
The debt-to-equity ratio is a financial metric that compares a company’s total debt to its total equity to assess its leverage and financial risk.
determinants of demand
Determinants of Demand
Determinants of demand are the various factors that influence the quantity of a good or service that consumers are willing and able to buy at a given price.
determinants of supply
Determinants of Supply
Determinants of supply are the factors that influence the quantity of goods or services that producers are willing and able to supply in a market.

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Daily Definition

Social Capital /səʊʃəl kæpɪtl/

Social capital refers to the links and bonds people form through friendships and acquaintances. These links can form through friendship groups, i.e. knowing a friend of a friend. Or, they can occur through daily social interactions.

Full Definition
Budget Deficit /‘bʌdʒɪt ‘dɛfɪsɪt/

A budget deficit occurs when the government spends more than it receives through taxation. For example, if it receives $2 trillion in tax receipts, but spends $2.5 trillion on public services – it has a budget deficit of $500 billion

Full Definition
Net Present Value /nɛt ‘prɛznt ‘væljuː/

Net Present Value (NPV) is the total value of future revenues, subtracted against any cash outflows during the same period. In other words, it calculates future streams of income and brings it in line to its present value. At the same time, it also factors in outflows.

Full Definition