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🔗 Economics 🔗 Education 🔗 Game theory 🔗 Games

A simulation game is "a game that contains a mixture of skill, chance, and strategy to simulate an aspect of reality, such as a stock exchange". Similarly, Finnish author Virpi Ruohomäki states that "a simulation game combines the features of a game (competition, cooperation, rules, participants, roles) with those of a simulation (incorporation of critical features of reality). A game is a simulation game if its rules refer to an empirical model of reality". A properly built simulation game used to teach or learn economics would closely follow the assumptions and rules of the theoretical models within this discipline.

🔗 United States 🔗 International relations 🔗 Finance & Investment 🔗 Economics 🔗 Politics 🔗 Trade 🔗 Automobiles 🔗 Taxation

The Chicken Tax is a 25 percent tariff on light trucks (and originally on potato starch, dextrin, and brandy) imposed in 1964 by the United States under President Lyndon B. Johnson in response to tariffs placed by France and West Germany on importation of U.S. chicken. The period from 1961–1964 of tensions and negotiations surrounding the issue was known as the "Chicken War," taking place at the height of Cold War politics.

Eventually, the tariffs on potato starch, dextrin, and brandy were lifted, but since 1964 this form of protectionism has remained in place to give U.S. domestic automakers an advantage over competition (e.g., from Japan, Turkey, China, and Thailand). Though concern remains about its repeal, a 2003 Cato Institute study called the tariff "a policy in search of a rationale."

As an unintended consequence, several importers of light trucks have circumvented the tariff via loopholes, known as tariff engineering. Ford (ostensibly a company that the tax was designed to protect), imported its first-generation Transit Connect light trucks as "passenger vehicles" to the U.S. from Turkey, and immediately stripped and shredded portions of their interiors (e.g., installed rear seats, seatbelts) in a warehouse outside Baltimore. To import vans built in Germany, Mercedes "disassembled them and shipped the pieces to South Carolina, where American workers put them back together in a small kit assembly building." The resulting vehicles emerge as locally manufactured, free from the tariff.

🔗 Economics

The Penn effect is the economic finding that real income ratios between high and low income countries are systematically exaggerated by gross domestic product (GDP) conversion at market exchange rates. It is associated with what became the Penn World Table, and it has been a consistent econometric result since at least the 1950s.

The "Balassa–Samuelson effect" is a model cited as the principal cause of the Penn effect by neo-classical economics, as well as being a synonym of "Penn effect".

🔗 Finance & Investment 🔗 Economics

A perpetual bond, also known colloquially as a perpetual or perp, is a bond with no maturity date, therefore allowing it to be treated as equity, not as debt. Issuers pay coupons on perpetual bonds forever, and they do not have to redeem the principal. Perpetual bond cash flows are, therefore, those of a perpetuity.

🔗 Economics 🔗 Basic Income

Degrowth (French: décroissance) is a political, economic, and social movement based on ecological economics, anti-consumerist and anti-capitalist ideas. It is also considered an essential economic strategy responding to the limits-to-growth dilemma (see The Path to Degrowth in Overdeveloped Countries and post-growth). Degrowth thinkers and activists advocate for the downscaling of production and consumption – the contraction of economies – arguing that overconsumption lies at the root of long term environmental issues and social inequalities. Key to the concept of degrowth is that reducing consumption does not require individual martyring or a decrease in well-being. Rather, "degrowthers" aim to maximize happiness and well-being through non-consumptive means—sharing work, consuming less, while devoting more time to art, music, family, nature, culture and community.

🔗 Finance & Investment 🔗 Economics 🔗 Sociology 🔗 Sociology/social movements 🔗 Basic Income 🔗 Social Work 🔗 International development

Basic income, also called universal basic income (UBI), citizen's income, citizen's basic income in the United Kingdom, basic income guarantee in the United States and Canada, or basic living stipend or guaranteed annual income or universal demogrant, is a governmental public program for a periodic payment delivered to all on an individual basis without means test or work requirement. The incomes would be:

• Unconditional: A basic income would vary with age, but with no other conditions. Everyone of the same age would receive the same basic income, whatever their gender, employment status, family structure, contribution to society, housing costs, or anything else.
• Automatic: Someone's basic income would be automatically paid weekly or monthly into a bank account or similar.
• Non-withdrawable: Basic incomes would not be means-tested. Whether someone's earnings increase, decrease, or stay the same, their basic income will not change.
• Individual: Basic incomes would be paid on an individual basis and not on the basis of a couple or household.
• As a right: Every legal resident would receive a basic income, subject to a minimum period of legal residency and continuing residency for most of the year.

Basic income can be implemented nationally, regionally or locally. An unconditional income that is sufficient to meet a person's basic needs (at or above the poverty line) is sometimes called a full basic income while if it is less than that amount, it is sometimes called partial. A welfare system with some characteristics similar to those of a basic income is a negative income tax in which the government stipend is gradually reduced with higher labour income. Some welfare systems are sometimes regarded as steps on the way to a basic income, but because they have conditionalities attached they are not basic incomes. If they raise household incomes to specified minima they are called guaranteed minimum income systems. For example, Bolsa Família in Brazil is restricted to poor families and the children are obligated to attend school.

Several political discussions are related to the basic income debate. Examples include the debates regarding robotization, artificial intelligence (AI), and the future of work. A key issue in these debates is whether robotisation and AI will significantly reduce the number of available jobs. Basic income often comes up as a proposal in these discussions.

🔗 Economics

Hotelling's law is an observation in economics that in many markets it is rational for producers to make their products as similar as possible. This is also referred to as the principle of minimum differentiation as well as Hotelling's linear city model. The observation was made by Harold Hotelling (1895–1973) in the article "Stability in Competition" in Economic Journal in 1929.

The opposing phenomenon is product differentiation, which is usually considered to be a business advantage if executed properly.

🔗 Economics

Induced demand – related to latent demand and generated demand – is the phenomenon that after supply increases, price declines and more of a good is consumed. This is entirely consistent with the economic theory of supply and demand; however, this idea has become important in the debate over the expansion of transportation systems, and is often used as an argument against increasing roadway traffic capacity as a cure for congestion. This phenomenon, more correctly called "induced traffic" or consumption of road capacity, may be a contributing factor to urban sprawl. City planner Jeff Speck has called induced demand "the great intellectual black hole in city planning, the one professional certainty that everyone thoughtful seems to acknowledge, yet almost no one is willing to act upon."

The inverse effect, or reduced demand, is also observed (see § Reduced demand).

🔗 Finance & Investment 🔗 Economics 🔗 Business 🔗 Psychology

The Volfefe Index is a stock market index of volatility in market sentiment for US Treasury bonds caused by tweets by President Donald Trump.

Bloomberg News observed Volfefe was created due to the statistical significance of Trump tweets on bond prices. ABC News Online posited Volfefe could help analyze interest rate risk in the face of "unpredictable" activity on social media by Trump.

🔗 Economics 🔗 Business 🔗 Politics 🔗 Socialism 🔗 Sociology

Wage slavery is a term describing a situation in which a person's livelihood depends on wages or a salary, especially when the dependence is total and immediate. It has been used to criticise exploitation of labour and social stratification, with the former seen primarily as unequal bargaining power between labour and capital (particularly when workers are paid comparatively low wages, e.g. in sweatshops) and the latter as a lack of workers' self-management, fulfilling job choices and leisure in an economy. The criticism of social stratification covers a wider range of employment choices bound by the pressures of a hierarchical society to perform otherwise unfulfilling work that deprives humans of their "species character" not only under threat of starvation or poverty, but also of social stigma and status diminution. Historically, some socialist organisations and activists have espoused workers' self-management or worker cooperatives as possible alternatives to wage labour.

Similarities between wage labour and slavery were noted as early as Cicero in Ancient Rome, such as in De Officiis. With the advent of the Industrial Revolution, thinkers such as Pierre-Joseph Proudhon and Karl Marx elaborated the comparison between wage labour and slavery, while Luddites emphasised the dehumanisation brought about by machines. The introduction of wage labour in 18th-century Britain was met with resistance, giving rise to the principles of syndicalism. Before the American Civil War, Southern defenders of African American slavery invoked the concept of wage slavery to favourably compare the condition of their slaves to workers in the North. The United States abolished slavery after the Civil War, but labour union activists found the metaphor useful – according to historian Lawrence Glickman, in the Gilded Age "[r]eferences abounded in the labour press, and it is hard to find a speech by a labour leader without the phrase".