Economies of Scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output decreasing with increasing scale. Companies achieve economies of scale by increasing production and lowering costs. This occurs because costs are spread over a larger number of goods. Costs in economies of scale are both fixed...
Econometrician
Definition Economy-based statistics are used to economic data, and econometrics may be defined as the discipline of economics that tries to provide empirical content for economic relationships. For better definition, it is "the quantitative study of actual economic events based on the parallel development of theory and observation, which is linked together by proper techniques of inference." According to an...
Earned Premium
What Is Earned Premium? Earned premium is the amount of money that you pay to the insurance company that they have earned from you. But you can't use it against an expired policy. Here are some tips that will help you make the most of it. Hopefully, this article will answer some of your questions about Earned Premium. Here are...
Effective Interest Rates
When it comes to borrowing money, interest rates are one of the most important factors to consider. But what exactly is an "effective interest rate?" And how do you go about finding the best one for your needs? Read on to learn more about this important financial term and how to get the most out of your loans. What is an...
Economic Capital
Define Economic Capital Economic capital refers to the money that a business or individual has available to invest in new ventures or cover unexpected expenses. It is also known as financial capital. The amount of economic capital available can vary greatly depending on the circumstances. For example, a company that is publicly traded may have more capital than a privately...
Economic Conditions
The current state of the economy The current state of the economy is a mixed bag. On the one hand, unemployment rates are at historic lows and wages are finally beginning to rise after years of stagnation. On the other hand, inflation is starting to pick up, which could lead to higher prices for goods and services. Additionally, many experts...
Eating Stock
What is 'Eating Stock' The forced purchase of a security when there are insufficient buyers. Eating stock often applies to underwriters of an initial public offering (IPO), if a certain level of subscription is guaranteed but is not met. This allows the company going public to have a better approximation for the amount of capital it will...
Easement
What is 'Easement' Easement is a real estate concept that defines a scenario in which one party uses the property of another party, where a fee is paid to the owner of the property in return for the right of easement. Easements are often purchased by public utility companies for the right to erect telephone poles or...
Eclectic Paradigm
DefinitionThe eclectic paradigm is a theory in economics and is also known as the OLI-Model or OLI-Framework. It is a further development of the internalization theory and published by John H. Dunning in 1979. Eclectic Paradigm What is an 'Eclectic Paradigm' An eclectic paradigm is a theory that provides a three-tiered framework for a company to follow...
Earnings Momentum
What is 'Earnings Momentum' When corporate earnings per share (EPS) growth is accelerating or decelerating from the prior fiscal quarter or fiscal year. Earnings momentum typically coincides with accelerating revenues and/or expanding margins caused by increased sales, cost improvements or overall market expansion. Explaining 'Earnings Momentum' Because of the quarterly...