Category: Terms and Concepts
Law of Large Numbers (LLN) states that as the number of observations of an event increases, the observed probability approaches to the expected value.
An agent has rational preferences if her preferences fulfill two properties, that they are complete and that they are also transitive.
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.
Autarky refers to the state where the country has no trade with any other country. It is a closed economy.
