Economics

Commodity Price Index A commodity price index is a fixed-weight index or (weighted) average of selected commodity prices, which may be based on spot or…

Shell money is a medium of exchange similar to coin money and other forms of commodity money and was once commonly used in many parts…

Commodity risk is the threat of changes to a commodity price that may have a negative effect on future market value and income. It refers…

Commodity Currency refers to currencies in economies sensitive to changes in commodity prices, which often are countries that rely on commodity exports for their GDP.…

A random variable (stochastic variable) is a variable with an undefined value or a function that assigns values to each of the results of an…

A commodity is any homogenous goods traded in bulk on an exchange. In economics, a commodity is an economic good that has full or substantial…

Disequilibrium is a condition where internal and/or external forces are preventing or causing the market to fall out of balance from achieving market equilibrium. It…

As a basis for evaluating the likelihood of that outcome, the empirical probability, relative frequency, or experimental probability utilizes the number of occurrences of an…

Consumer surplus also referred to as the surplus of the customer, is an economic indicator of consumer benefits. It is the difference between a consumer’s…

Convergence generally means coming together, while divergence generally means moving apart. The idea of convergence in economics (also sometimes known as the catch-up effect) is…

Normal profit (NP) is an economic concept that defines when, in a perfectly competitive market; the total profits of a company are equal to its…

Commodity valuation is the method of deriving, under optimum market conditions, the intrinsic value of a commodity. The product value of goodwill be expressed in…