Goods and Markets
This type of good is non-excludable and non-rivalrous, meaning it’s available to everyone without reducing availability to others.
What is public good?
This economic theory suggests that education serves as a signal to employers about a potential employee’s productivity.
What is signaling theory?
The skills, knowledge, and experience possessed by an individual that contribute to their economic productivity are called this.
What is human capital?
This metric is a measure of assets minus liabilities, often used to indicate wealth.
What is net worth?
This economic term refers to the unfair disparity in wealth distribution within a society.
What is inequality?
The cost or benefit that affects a third party who did not choose to incur that cost or benefit is known as this.
What is an externality?
When there is an imbalance in information available to buyers and sellers, especially when one party knows more than the other, it is called this.
What is asymmetric information?
The financial, social, and intellectual benefits gained from acquiring education represent this type of return.
What are returns to education?
The unequal distribution of income and opportunity between different groups within a society is known as this.
What is inequality?
The comparison between these two financial terms helps economists analyze long-term financial health vs. short-term gains.
What are wealth and income?
The division between government and privately controlled economic activities is called this.
What is the private and public sector?
The idea that the wealthy often have more influence on economic and political structures, leading to layered social structures, is known as this.
What is stratification?
The resources required to deliver education, including teachers, facilities, and materials, are known as this.
What are inputs of education?
This metric, commonly contrasted with wealth, measures the flow of money received over a period.
What is income?
Accumulated financial and real assets over time fall under this category, in contrast to immediate earnings.
What is wealth?
When each additional unit of a good or service provides less benefit than the previous unit, economists refer to this phenomenon.
What is diminishing marginal returns?
A measure that tracks the change in the overall price level or economic performance, used to assess market trends.
What is an index?
The outcomes of educational investment, like improved knowledge, skills, and job prospects, are collectively known as this.
What are outputs of education?
Wealth and income differ in that wealth refers to accumulated assets, while income refers to this.
What is earnings or revenue over time?
This type of inequality is primarily concerned with differences in access to resources and opportunities.
What is economic inequality?
This term refers to cost advantages reaped by companies when production becomes efficient, often due to increased production levels.
When markets fail to allocate resources efficiently or equitably, resulting in a negative impact on society, it is known as this economic issue.
What is a market failure?
The theory that suggests education credentials act as a way for individuals to signal their abilities or productivity to employers is called this.
What is signaling theory?
These types of returns describe the economic value gained from educational achievements.
What are returns to education?
When comparing wealth and income, wealth is often inherited or accumulated, while income is this.
What is earned or generated through work?