An agent has rational preferences if her preferences fulfill two properties, that they are complete and that they are also transitive.
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Beggar Thy Neighbor Policy
Beggar thy neighbor policy is an economic policy which aims to boost the economy of a country, while worsening the economic conditions for another country.
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Autarky
Autarky refers to the state where the country has no trade with any other country. It is a closed economy.
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Normal good, inferior good, Giffen good
Usually, goods are categorized into three different groups, which are: normal goods, inferior goods and Giffen goods.
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Measuring inequality: The 20:20 ratio
The 20:20 ratio compares the average income of the top 20% richest of a given society to the poorest 20% of that society.
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