The elasticity of demand measures the relative change in the total amount of goods or services that are demanded by the market or by an individual. The quantity demanded depends on several factors. Some of the most important factors are the price of the good or service, the price of other goods and services, the income of the population or person and the preferences of the consumers.
Perpetual resources are renewable resources that cannot be exhausted, regardless of their rate of use. Perpetual resources are natural resources, because they are provided by nature without human intervention. But not all natural resources are perpetual resources: some natural resources can cease to be renewable if used in excess or unsustainably.
Examples of perpetual resources
- Solar energy.
- Waves and Tides.
- Geothermal Energy.
Capital budgeting is a process that assess the convenience of carrying out an investment or not. If there are many profitable investments available, the capital budgeting tries to find out which one is more advisable.
The term “political economy” was used from the 18 century and until the 19 century, as a synonym of what was understood as economics or economic science during that time. Nowadays, there is a discipline called political economy and it’s not a synonym of economy. It is a branch of social sciences that studies the relations between society, state, markets and people. It is the study of the state administration, taking into account economic, political and sociological elements.