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Labor Shortage
In economics, a shortage or excess demand is a situation in which the demand for a product or service exceeds its supply in a market. It is the opposite of an excess supply ( surplus). Definitions In a perfect market (one that matches a simple microeconomic model), an excess of demand will prompt sellers to increase prices until demand at that price matches the available supply, establishing market equilibrium. In economic terminology, a shortage occurs when for some reason (such as government intervention, or decisions by sellers not to raise prices) the price does not rise to reach equilibrium. In this circumstance, buyers want to purchase more at the market price than the quantity of the good or service that is available, and some non-price mechanism (such as "first come, first served" or a lottery) determines which buyers are served. So in a perfect market the only thing that can cause a shortage is price. In common use, the term "shortage" may refer to a situation wh ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Price Ceiling
A price ceiling is a government- or group-imposed price control, or limit, on how high a price is charged for a product, commodity, or service. Governments use price ceilings to protect consumers from conditions that could make commodities prohibitively expensive. Such conditions can occur during periods of high inflation, in the event of an investment bubble, or in the event of monopoly ownership of a product, all of which can cause problems if imposed for a long period without controlled rationing, leading to shortages. Further problems can occur if a government sets unrealistic price ceilings, causing business failures, stock crashes, or even economic crises. On the other hand, price ceilings give a government to the power to prevent corporations from price gouging or otherwise setting prices that create negative outcomes for the government's society. While price ceilings are often imposed by governments, there are also price ceilings that are implemented by non-governmental ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rationing
Rationing is the controlled distribution (marketing), distribution of scarcity, scarce resources, goods, services, or an artificial restriction of demand. Rationing controls the size of the ration, which is one's allowed portion of the resources being distributed on a particular day or at a particular time. There are many forms of rationing, although rationing by price is most prevalent. Rationing is often done to keep price below the market clearing, market-clearing price determined by the process of supply and demand in an free market, unfettered market. Thus, rationing can be complementary to incomes policies, price controls. An example of rationing in the face of rising prices took place in the various countries where there was rationing of gasoline during the 1973 energy crisis. A reason for setting the price lower than would clear the market may be that there is a high input , which would drive the market price very high. High prices, especially in the case of necessitie ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Queue Area
Queue areas are places in which people queue (first-come, first-served) for goods or services. Such a group of people is known as a ''queue'' (British English, British usage) or ''line'' (American English, American usage), and the people are said to be waiting or standing ''in a queue'' or ''in line'', respectively. Occasionally, both the British and American terms are combined to form the term "queue line". Examples include checking out groceries or other goods that have been collected in a self service Retailing#Shops and Stores, shop, in a shop without self-service, at an Automatic Teller Machine, ATM, at a ticket desk, a city bus, or in a taxi stand. Queueing is a phenomenon in a number of fields, and has been extensively analysed in the study of queueing theory. In economics, queueing is seen as one way to rationing, ration scarcity, scarce goods and services. Types Physical History The first written description of people standing in line is found in an 1837 book, '' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Grey Market
A grey market or dark market (sometimes confused with the similar term "parallel import, parallel market") is the trade of a commodity through distribution channels that are not authorised by the original manufacturer or trademark proprietor. Grey market products (grey goods) are products traded outside the authorised manufacturer's channel. Etymology Manufacturers of computers, telecom, and technology equipment often sell these products through distributors. Most distribution agreements require the distributor to resell the products strictly to end users. However, some distributors choose to resell products to other resellers. In the late 1980s, manufacturers labelled the resold products as the "grey market". Description Grey market goods are goods sold outside the authorized distribution channels by entities which may have no relationship with the producer of the goods. This form of parallel import frequently occurs when the price of an item is significantly higher in one ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Black Market
A black market is a Secrecy, clandestine Market (economics), market or series of transactions that has some aspect of illegality, or is not compliant with an institutional set of rules. If the rule defines the set of goods and services whose production and distribution are prohibited or restricted by law, non-compliance with the rule constitutes a black-market trade since the transaction itself is illegal. Such transactions include the illegal drug trade, prostitution (where prohibited), illegal currency transactions, and human trafficking. Participants try to hide their illegal behavior from the government or regulatory authority. Cash is the preferred medium of exchange in illegal transactions, since cash transactions are less easily traced. Common motives for operating in black markets are to trade contraband, avoid taxes and regulations, or evade price controls or rationing. Typically, the totality of such activity is referred to with the definite article, e.g., "''the' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Opportunity Costs
In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to be made between several mutually exclusive alternatives. Assuming the best choice is made, it is the "cost" incurred by not enjoying the ''benefit'' that would have been had if the second best available choice had been taken instead. The '' New Oxford American Dictionary'' defines it as "the loss of potential gain from other alternatives when one alternative is chosen". As a representation of the relationship between scarcity and choice, the objective of opportunity cost is to ensure efficient use of scarce resources. It incorporates all associated costs of a decision, both explicit and implicit. Thus, opportunity costs are not restricted to monetary or financial costs: the real cost of output forgone, lost time, pleasure, or any other benefit that provides utility should also be considered an opportunity cost. Types Expl ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Transaction Costs
In economics, a transaction cost is a cost incurred when making an economic trade when participating in a market. The idea that transactions form the basis of economic thinking was introduced by the institutional economist John R. Commons in 1931. Oliver E. Williamson's ''Transaction Cost Economics'' article, published in 2008, popularized the concept of transaction costs. Douglass C. North argues that institutions, understood as the set of rules in a society, are key in the determination of transaction costs. In this sense, institutions that facilitate low transaction costs can boost economic growth.North, Douglass C. 1992. "Transaction costs, institutions, and economic performance", San Francisco, CA: ICS Press. Alongside production costs, transaction costs are one of the most significant factors in business operation and management. Definition Williamson defines transaction costs as a cost innate in running an economic system of companies, comprising the total costs of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Government Intervention
A market intervention is a policy or measure that modifies or interferes with a market, typically done in the form of state action, but also by philanthropic and political-action groups. Market interventions can be done for a number of reasons, including as an attempt to correct market failures, or more broadly to promote public interests or protect the interests of specific groups. Economic interventions can be aimed at a variety of political or economic objectives, including but not limited to promoting economic growth, increasing employment, raising wages, raising or reducing prices, reducing income inequality, managing the money supply and interest rates, or increasing profits. A wide variety of tools can be used to achieve these aims, such as taxes or fines, state owned enterprises, subsidies, or regulations such as price floors and price ceilings. Basic forms Price floor and ceiling file:European Wheat Prices - A Price Floor Example.jpg, alt=a supply- ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Artificial Scarcity
Artificial scarcity is scarcity of items despite the technology for production or the sufficient capacity for sharing. The most common causes are monopoly pricing structures, such as those enabled by laws that restrict competition or by high fixed costs in a particular marketplace. The inefficiency associated with artificial scarcity is formally known as a deadweight loss. Background In a capitalist system, an enterprise is judged to be successful and efficient if it is profitable. To obtain maximum profits, producers may restrict production rather than ensure the maximum utilisation of resources. This strategy of restricting production by firms in order to obtain profits in a capitalist system or mixed economy is known as creating artificial scarcity. Artificial scarcity essentially describes situations where the producers or owners of a good restrict its availability to others beyond what is strictly necessary. Ideas and information are prime examples of unnecessarily sc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Recreational Drug Use
Recreational drug use is the use of one or more psychoactive drugs to induce an altered state of consciousness, either for pleasure or for some other casual purpose or pastime. When a psychoactive drug enters the user's body, it induces an Substance intoxication, intoxicating effect. Recreational drugs are commonly divided into three categories: depressants (drugs that induce a feeling of relaxation and calmness), stimulants (drugs that induce a sense of energy and alertness), and hallucinogens (drugs that induce perceptual distortions such as hallucination). In popular practice, recreational drug use is generally tolerated as a social behaviour, rather than perceived as the medical condition of self-medication. However, drug use and drug addiction are Social stigma, severely stigmatized everywhere in the world. Many people also use prescribed and controlled depressants such as opioids, opiates, and benzodiazepines. What controlled substances are considered generally unlawful t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prostitution
Prostitution is a type of sex work that involves engaging in sexual activity in exchange for payment. The definition of "sexual activity" varies, and is often defined as an activity requiring physical contact (e.g., sexual intercourse, non-penetrative sex, manual sex, oral sex, etc.) with the customer. The requirement of physical contact also creates the risk of transferring infections. Prostitution is sometimes described as sexual services, commercial sex or, colloquially, hooking. It is sometimes referred to euphemistically as "the world's oldest profession" in the English-speaking world. A person who works in the field is usually called a prostitute or '' sex worker'', but other words, such as hooker and whore, are sometimes used pejoratively to refer to those who work in prostitution. The majority of prostitutes are female and have male clients. Prostitution occurs in a variety of forms, and its legal status varies from country to country (sometimes from region ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
