What is Money ?

To explain it with a formal definition Money is : Anything that is accepted as a way of exchange to buy products and services The basics mechanics of the whole monetray system are invisible. Many individuals take money for granted when they are spending it. So when...

Probability with examples

Probability Definition ”If an experiment can result in n equally likely, mutually exclusive and exhaustive outcomes and m of which are favorable to the occurrences of an event A, the probability that the event A will occur is given by the ratio m/n. Symbolically, the...

Sample Space in Statistics

Introduction The idea of probability is familiar to everyone. In our daily life we make statements such as the following; “It is likely to rain today.” “I will probably go abroad this year.” “I am almost sure that I will win this game.” “The probability that nuclear...

Aggregate Demand : Summary

 Aggregate Demand We know that when it comes to people demand for money – there are 3 elements that has the ability to change the decisions of the individuals in either spending more or less. And these elements are: Income (Output) Interest rate (I) Price Level (P) In...

Types and Strategies of Game Theory

Types of Game Theory Cooperative Game :  It is an economic game played by firms in which players or firms can negotiate on binding contracts which allows them  to make mixed or joint strategies. Example: Ahmed and Ali are buyer and seller respectively and they are...

Game Theory Introduction

To understand the game theory , one must be familiar with the exact definition of word “Game” . The word game means “ Any physical or mental activity that humans do for the sake of pleasure or simply the competition between two players”. So,...

Circular Flow of Income

Circular flow of income is a neoclassical model which tells us how income or money circulates in an economy. Circular flow of income means that income and expenditure  in an economy are related to each other in a circular way. Receiving of income and production of...

Quiz: Demand

So you know what is Demand and Supply ? Lets have a Quiz ! Time limit: 0 Quiz-summary 0 of 8 questions completed Questions: 1 2 3 4 5 6 7 8 Information The Quiz is taken from the reference of Demand and Supply chapter of Microeconomics 7e by Robert and Pindyck.  Click...

Standard Deviation

Definition “The standard deviation is defined as the positive square root of the mean of the squared deviations of the values from their mean.” Characteristics of Standard Deviation: i. The standard deviation is affected by the values of every observations. ii. The...
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