The Hawthorne effect is when the subjects of an experimental study try to change or improve their behavior simply because it is being evaluated or studied.
The term was coined during experiments that were carried out at the Western Electric plant in the Chicago suburb of Hawthorne in the late 1920s and early 1930s.
It is believed that the Hawthorne effect is inevitable in studies and experiments in which humans are used as test subjects.
The question of whether the Hawthorne effect is real remains open.
An economist is an expert who studies the relationship between a society’s resources and its production or output, using a number of different indicators to predict future trends.
An absolute advantage is when a manufacturer can provide a greater quantity of a product or service for the same price or the same quantity at a lower price than its competitors.
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.
Autarky refers to a state of self-sufficiency and is commonly used to describe countries or economies that seek to reduce their dependence on international trade.
Automatic Stabilizers is a permanent government policy that automatically adjusts tax rates and transfers payments in a way that stabilizes income, consumption, and business spending over the business cycle.
The balance of trade (BOT) is the difference between the value of a country’s imports and exports over a given period and is the largest component of a country’s balance of payments (BOP).
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.