# Economic

## Ordinary Annuity Vs. Annuity Due – What’s the Difference?

An annuity due and an ordinary annuity are two types of annuities that differ primarily by the timings of the payments. Both are widely used in the financial markets but the use of ordinary annuity mechanisms is more common. Let’s discuss what ordinary annuities are, annuity due, how these types of annuities work, and their …

## What is an Alternative Hypothesis? Definition, Types, and Examples

The alternative hypothesis is a way to propose a contrasting view on a proposed theory by a researcher. It tries to prove the original statement provided by the null statement false. Let us discuss what an alternative hypothesis is, how it is different from the null hypothesis, its types, and some examples in our article. …

## What is the Addition Rule of Probabilities? Definition, Calculation, Examples, and More

Probability refers to the chances of an event happening in statistical terms. The probability of two events means the chances of both events happening at the same time, one at a time, or one after the other. The rule of addition describes the relationship between the probability of two events when they can be mutually …

## What is Adverse Selection in Economics, and How Does It Work?

Generally, adverse selection is when either the buyer or the seller misuses asymmetric information. It is a situation where one party has more information about a product/service than the other. Let’s discuss what adverse selection is in economics and how it works. What is Adverse Selection in Economics? Adverse selection in economics refers to a …

## What is Abnormal Profit in Economics? (Definition, Formular, and Example)

Abnormal profit refers to the unusual profit generated by a business due to an added advantage or market structure. Businesses can generate abnormal profits due to several reasons including an economic monopoly or imperfect competition. Let us discuss what abnormal profit is, how it exists, and what are its advantages and disadvantages. Abnormal Profit – …

## What Does Aggregate Mean In Economics?

The simple definition of aggregate is sum or total. In economics, it is used to characterize the sum of a given economic variable. Associating economic relationships at the micro to aggregate levels is often called aggregation. Aggregate Economic Variables Aggregate economic variables are the total values of these variables for the economy as a whole. …

## What is Body Mass Index (BMI)? How to Calculate It

Quetelet Index, also known as Body Mass Index (BMI), is a measurement that is calculated using an individual’s mass (weight) and height. The BMI provides an accurate indicator of body fatness for most people, as it is proportional to the mass and does not depend on gender or ethnicity. However, it may not be as …

## Risk Behavior and Risk-averse – Definition, Explanation, and Analysis

Risk behavior defines the characteristics of an investor. The risk behavior can be closely linked with the personal behavior of investors. However, many other factors also influence and shape risk behavior. Let us discuss what is risk behavior, risk aversion, and different types of risk profiles. What is Risk Behavior? Risk behavior refers to the …

## What Does Pandemic Unemployment Assistance (PUA) In Progress Mean?

PUA in progress means that you have claimed unemployment benefits. However, you have not received payment as of now. This may be due to the fact that L&I is still determining your eligibility for the benefits. However, if you comply with the eligibility requirements of benefits, it should soon indicate the date of payment. On …

## What is Best in Class? Definition, Meaning, Example, and More

Companies offer products and services to their customers. These items help generate revenues, which are substantial in making profits. For companies, these products are essential to attract customers. However, competitors may also offer similar items. Companies must ensure that they have a competitive edge over those competitors. This way, they can ascertain that customers prefer …