The anthropic principle, also known as the "observation selection effect", is the hypothesis, first proposed in 1957 by Robert Dicke, that the range of possible observations that could be made about the universe is limited by the fact that observations could happen only in a universe capable of developing intelligent life. Proponents of the anthropic principle argue that it explains why the universe has the age and the fundamental physical constants necessary to accommodate conscious life, since if either had been different, no one would have been around to make observations. Anthropic reasoning is often used to deal with the idea that the universe seems to be finely tuned for the existence of life.
The holographic principle is a property of string theories and a supposed property of quantum gravity that states that the description of a volume of space can be thought of as encoded on a lower-dimensional boundary to the region — such as a light-like boundary like a gravitational horizon. First proposed by Gerard 't Hooft, it was given a precise string theoretic interpretation by Leonard Susskind, who combined his ideas with previous ones of 't Hooft and Charles Thorn. Leonard Susskind said, “The three-dimensional world of ordinary experience––the universe filled with galaxies, stars, planets, houses, boulders, and people––is a hologram, an image of reality coded on a distant two-dimensional surface." As pointed out by Raphael Bousso, Thorn observed in 1978 that string theory admits a lower-dimensional description in which gravity emerges from it in what would now be called a holographic way. The prime example of holography is the AdS/CFT correspondence.
Macroeconomics is a branch of economics that deals with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies. Macroeconomists study topics such as output/GDP and national income, unemployment, price indices and inflation, consumption, saving, investment, energy, international trade, and international finance.
Taxes and subsidies change the price of goods and, as a result, the quantity consumed. There is a difference between an ad valorem tax and a specific tax or subsidy in the way it is applied to the price of the good. In the end levying a tax moves the market to a new equilibrium where the price of a good paid by buyers increases and the proportion of the price received by sellers decreases. The incidence of a tax does not depend on whether the buyers or sellers are taxed since taxes levied on sellers are likely to be met by raising the price charged to buyers. Most of the burden of a tax falls on the less elastic side of the market because of a lower ability to respond to the tax by changing the quantity sold or bought. Introduction of a subsidy, on the other hand, may either lowers the price of production which encourages firms to produce more, or lowers the price paid by buyers, encouraging higher sales volume. Such a policy is beneficial both to sellers and buyers.
Financial economics is the branch of economics characterized by a "concentration on monetary activities", in which "money of one type or another is likely to appear on both sides of a trade". Its concern is thus the interrelation of financial variables, such as share prices, interest rates and exchange rates, as opposed to those concerning the real economy. It has two main areas of focus: asset pricing and corporate finance; the first being the perspective of providers of capital, i.e. investors, and the second of users of capital. It thus provides the theoretical underpinning for much of finance.
A Brief History of Time: From the Big Bang to Black Holes is a book on theoretical cosmology by English physicist Stephen Hawking. It was first published in 1988. Hawking wrote the book for readers who had no prior knowledge of physics.
In economics and political science, fiscal policy is the use of government revenue collection and expenditure to influence a country's economy. The use of government revenue expenditures to influence macroeconomic variables developed in reaction to the Great Depression of the 1930s, when the previous laissez-faire approach to economic management became unworkable. Fiscal policy is based on the theories of the British economist John Maynard Keynes, whose Keynesian economics theorised that government changes in the levels of taxation and government spending influence aggregate demand and the level of economic activity. Fiscal and monetary policy are the key strategies used by a country's government and central bank to advance its economic objectives. The combination of these policies enables these authorities to target inflation and to increase employment. In modern economies, inflation is conventionally considered "healthy" in the range of 2%–3%. Additionally, it is designed to try to keep GDP growth at 2%–3% percent and the unemployment rate near the natural unemployment rate of 4%–5%. This implies that fiscal policy is used to stabilise the economy over the course of the business cycle.
In economics, economic equilibrium is a situation in which economic forces such as supply and demand are balanced and in the absence of external influences the values of economic variables will not change. For example, in the standard text perfect competition, equilibrium occurs at the point at which quantity demanded and quantity supplied are equal.
In economics and marketing, product differentiation is the process of distinguishing a product or service from others to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as from a firm's other products. The concept was proposed by Edward Chamberlin in his 1933 book, The Theory of Monopolistic Competition.
A learning curve is a graphical representation of the relationship between how proficient people are at a task and the amount of experience they have. Proficiency usually increases with increased experience, that is to say, the more someone, groups, companies or industries perform a task, the better their performance at the task.
Liebig's law of the minimum, often simply called Liebig's law or the law of the minimum, is a principle developed in agricultural science by Carl Sprengel (1840) and later popularized by Justus von Liebig. It states that growth is dictated not by total resources available, but by the scarcest resource. The law has also been applied to biological populations and ecosystem models for factors such as sunlight or mineral nutrients.
Goldilocks or "Goldilocks and the Three Bears" is a 19th-century fairy tale.
The characterization of the universe as finely tuned suggests that the occurrence of life in the universe is very sensitive to the values of certain fundamental physical constants and that values different from the observed ones are more probable. If the values of any of certain free parameters in contemporary physical theories had differed only slightly from those observed, the evolution of the universe would have proceeded very differently, and "life as we know it" might not have been possible.
International economics is concerned with the effects upon economic activity from international differences in productive resources and consumer preferences and the international institutions that affect them. It seeks to explain the patterns and consequences of transactions and interactions between the inhabitants of different countries, including trade, investment and transaction.
"Goldilocks and the Three Bears" is a 19th-century English fairy tale of which three versions exist. The original version of the tale tells of an impudent old woman who enters the forest home of three anthropomorphic bachelor bears while they are away. She eats some of their porridge, sits down on one of their chairs, breaks it, and sleeps in one of their beds. When the bears return and discover her, she wakes up, jumps out of the window, and is never seen again. The second version replaces the old woman with a young girl named Goldilocks, and the third and by far best-known version replaces the bachelor trio with a family of three.
A Goldilocks economy is an economy that is not too hot or cold, in other words sustains moderate economic growth, and that has low inflation, which allows a market-friendly monetary policy. The name comes from the children's story Goldilocks and the Three Bears.
The following outline is provided as an overview of and topical guide to finance:
Tacit collusion is a collusion between competitors who do not explicitly exchange information but achieve an agreement about coordination of conduct. There are two types of tacit collusion: concerted action and conscious parallelism. In a concerted action also known as concerted activity, competitors exchange some information without reaching any explicit agreement, while conscious parallelism implies no communication. In both types of tacit collusion, competitors agree to play a certain strategy without explicitly saying so. It is also referred to as oligopolistic price coordination or tacit parallelism.
This glossary of economics is a list of definitions of terms and concepts used in economics, its sub-disciplines, and related fields.
