Economic viability is when a project proves to be economically feasible, innovative and sustainable in terms of investing financial resources into the project. Funding for the project must be compatible with the demands and constraints that occur during the project's life span.Know More
Economic viability means that market operation is sustainable regarding current and projected revenues. The revenues will be greater than or equal to all current and planned expenditures. In simple terms, any project or activity that can financially support itself is economically viable. Using farming as an example, economic viability refers to the ability and capacity of a farm to 'make a living' annually.
Part of the concept of economic viability is the implicit recognition that the enjoyment of ? and effort put into ? a project determines how a project or business grows and how often workers are replaced.
For economic viability to work, it must often span generations. Workers must stay on top of best practices and share that information appropriately. In the farming example, this would include sharing with other farmers in the region as well as the community.Learn more about Economics
The concepts of elastic and inelastic demand are used in economics to describe change processes, and the differences between the terms are defined by the amount of change occurring within a given system. Areas of economic study related to supply and demand utilize these concepts.Full Answer >
Nominal GDP is a measure of the Gross Domestic Product in absolute terms, while real GDP is a measure that factors in the rate of inflation.Full Answer >
Another term for "equilibrium price" in economics is "market-clearing price," which is a price point at which the market achieves a balance in terms of supply and demand. When the market reaches a market-clearing price, it does not generate a surplus or shortage.Full Answer >
Traditional economic systems are economies based on dissemination of resources, products and goods based on rituals, routines and customs. Some nations have traditional economies, while traditional economies exist regionally or locally in other places. Regardless of whether local or national, traditional economies revolve around the production and exchange of simple, staple goods such as food and clothing.Full Answer >