What is the Federal Trade Commission Act of 1914? In 1914, the same year that the Clayton Act passed, Congress passed the Federal Trade Commission Act (FTC Act). This act created the Federal Trade Commission. The FTC is an independent agency formed to protect consumers from fraud and to create a strong competitive market by implementing consumer pro...

What is a Tenancy at Will? Tenancy at will, also known as an estate at will, is a property tenure that does not involve a lease or any other form of formal or written agreements, and is only subject to the will of the landlord and the tenant. A tenancy at will does not specify any fixed terms regarding duration of the tenants stay or the exchange of...

How do Changes in Income Affect Consumer Choices? How does a rise in income affect a consumer’s utility-maximizing choice?  When deciding the combination of two (or more) goods to purchase, the utility maximizing choice will be the point at which the marginal utility received from the purchase of the next unit of each good is equal.  Generally, if a...

Stages of a multiparty negotiation?  The stages of a multiparty negotiation include:  Pre-negotiation Stage  Formal Negotiation Stage Agreement Stage Pre- negotiation Stage of a Multi-Party Negotiation The Pre-negotiation Stage is the first stage of a multi-party negotiation. It is characterized by a lot of informal contact among the parties. The pa...

What is Evolutionary Economics? Evolutionary economics is a theory propounded by an American economist and sociologist, Thorstein Veblen (1857-1929). This theory dwells on anthropology, sociology, psychology, and Darwinian principles. Several other economists including Joseph Schumpeter have improved on Veblen's work in later years. How does Evoluti...

What is an Auditor's Report? An auditors report refers to a written letter by an auditor/accountant after conducting an accounting audit process that opines whether a company's financial statements as presented comply with the generally accepted accounting principles (GAAP). Generally, an auditors report will be part of a company's annual report (Fo...

What are Macroeconomic Frameworks? As you learn in the micro part of this book, principal tools that economists use are theories and models (see Welcome to Economics! for more on this). In microeconomics, we used the theories of supply and demand. In macroeconomics, we use the theories of aggregate demand (AD) and aggregate supply (AS). This book pr...

What is a Frequency Distribution? A frequency distribution is a chart or list that presents the frequency of different outcomes in a given sample. The frequency distribution presents an overview of all the values or variables in a given sample that the frequency (number of times) they occur. A frequency distribution can use a list, table or graph to...

What is an Average Outstanding Balance? The average outstanding balance is a calculation used in short-term, revolving loans, such as credit credits. A simple average balance is calculated by adding a beginning and ending balance and dividing the total by 2. The weighted average balance takes into account the amount of time during the measurement pe...

What is a Tier Structure? Tier refers to a series of rows or layers or a level or grade in the hierarchy of an organization or system. A tier structure describes a system with distinct levels or layers. In the arrangement of a tier system, one level must be completed or accomplished before another commences. Each level must be undertaken separately ...