If you like this resource, please like our facebook page

Giffen goods, together with Veblen goods, are an exception to the law of demand. If the price of such goods increases, quantity demanded per period will increase, giving rise to a positively sloped demand curve. A Giffen good has the following characteristic: it is a very strongly inferior good, it is consumed by the very poor and expenditure on such a good dominates total expenditures, e.g. potatoes during the Irish potato famine in the 19th century.

A measure of income inequality within a population that ranges from zero (perfect equality) to 1 (or 100) in the case of absolute inequality; Brazil has one of the highest Gini coefficients (about 0.60) whereas Austria has one of the lowest (0.25).

The process of increasing world-wide disconnectedness reflected in greater trade and cross border investment flows, the proliferation of multinationals and existence of faster and cheaper communication (internet, cell phones) and transportation.

When government policies aiming at correcting a market failure fail to do so as a result of unintended consequences, measurement problems, biases, etc.

The value of all final goods and services produced within an economy over a period of time, usually a year.