Gross Domestic Product Distorts Personal Wellbeing
Gross Domestic Product is the standard measure of how well or poorly an economy is doing. Some economists say it’s a false indicator.
Linen: The Manufacturing Process and How to Care for Linen Fabrics
Linen fibers are natural fibers that have a long history. In this article, you will know a brief history of flax, the microstructure of flax fiber, physical and chemical properties, flax industry, its uses and how to care for linen fabrics.
Advantages and Disadvantages of a Firm’s International Expansion
This article analyses the advantages and disadvantages of a firm’s international expansion and make some concluding recommendations.
Summary of Capital in the Twenty-First Century by Thomas Piketty
A summary of Piketty's groundbreaking study of capitalism and inequality over the centuries.
Downtown Poteau Town Square (Pocket Park) Revitalization
How a burned out building became one of Poteau's most popular downtown attractions.
The Environmental, Social and Economic Impacts of Winemaking
Winemaking is a multifaceted and delicate process that has transcended centuries and is enjoyed by many cultures. However, the intricate method of creating wine has both numerous positive and negative environmental, social as well as economical impacts.
What Is GDP? What is GNP? A Basic Guide to Understanding Economic Terms
What is GDP or GNP? How are GDP and GNP related? What is Nominal GDP and Real GDP? A short overview of these important economic concepts.
Book Review: 'Economic Facts and Fallacies' by Sowell
What does 'Economic Facts and Fallacies' by Thomas Sowell cover? And how does it compare to other Thomas Sowell books?
Features of the U.S. Financial System That Caused the Great Recession of 2007-2008
This article takes an academic approach to answering frequently asked questions about the Great Recession of 2007-2008.
Best Books About the Economy, Austerity, and Capitalism
All these economic books are international best sellers. They are representative of views endorsed by millions of people, and deal with austerity, capitalism, inequality and the super-rich.
Revolution: Its Impact on Economic Theorists
The late 19th century was a critical time of change: social, economical, political, and more. This change resulted from the revolutions of the previous centuries. Three such revolutions in particular are the French Revolution, Scientific Revolution, and the Christian Reformation. The culmination of these three revolutions gave birth to new political, social, and economical ideologies of Capitalism, Socialism- governmental and non-governmental, and Communism/Anarchism. Each ideology broke bonds w
Law of Diminishing Marginal Utility - Detailed Explanation
This article explains the law of diminishing marginal utility with the help of a schedule and diagram. It also states the assumptions and exceptions of the law of diminishing marginal utility.
Poverty Perspectives: ‘basic Needs Approach’ Vs. ‘capability Approach'
If the basic needs approach (BNA) sees poverty in terms of consumption deprivation, the capabilities approach (CA) looks at poverty as deprivation of opportunities required to lead the life people want to live..
Equilibrium Price Determination in the Market Period and Short Period Under Perfect Competition
The market period is a very short period in which the supply of a commodity is fixed. It is the variations in demand that determine the price in such a market period...
Explanation of the Law of Supply and Its Exceptions
The law of supply states the functional relationship between price and the quantity offered for sale. At higher prices, more sellers are interested in producing the product, and each existing seller..
Relationship Between Average and Marginal Revenue Curves
The costs and revenues of a firm determine its nature and the levels of profit. The revenue concepts commonly used in economic are total revenue, average revenue and marginal revenue...
Meaning of Opportunity Cost and Its Economic Significance
The concept of opportunity cost occupies an important place in economic theory. The concept was first developed by Wieser. The opportunity cost of anything is the alternative that has been foregone...
How Is Indifference Curve Analysis Superior to Marshallian Cardinal Utility Theory?
Indifference curve analysis possesses certain distinguishable and unquestionable merits over Marshall’s cardinal utility analysis. Following are the undeniable merits of indifference curve analysis.
How Do Income and Substitution Effects Work on Consumer’s Equilibrium for Giffen, Normal and Inferior Goods?
Giffen goods explanation - Income and substitution effects on Giffen goods - Income and substitution effects on normal goods - Income and substitution effects on inferior goods
How Do Income Effect, Substitution Effect and Price Effect Influence Consumer's Equilibrium?
Income Effect on Consumer's Equilibrium - Substitution Effect on Consumer's Equilibrium - Price Effect on Consumer's Equilibrium - Derivation of Demand Curve from Price Consumption Curve
How to Derive Consumer's Equilibrium Through the Technique of Indifference Curve and Budget Line?
Meaning of consumer's equilibrium - assumptions - budget line or price line - indifference map - necessary conditions for consumer's equilibrium - deriving consumer's equilibrium graphically
What are the Properties of the Indifference Curves?
An indifference curve, since it represents level of satisfaction, is a subjective phenomenon. Each person has a unique set of indifference curves. However, all indifference curves possess some...
Indifference Curve Analysis: Assumptions, Indifference Schedule and the Meaning of Marginal Rate of Substitution
Indifference curve analysis is basically an attempt to improve cardinal utility analysis (principle of marginal utility). An indifference curve is also known as iso utility curve (“iso” means same).
Advantages and Disadvantages of the Marginal Utility Analysis
Prof. Marshall writes that the application of marginal utility concept extends over almost every field of economics, including production, distribution, consumption, public finance, and so on.
The Law of Equi-Marginal Utility or Gossen's Second Law
The law of equi-marginal utility or Gossen's second law explains how a consumer allocates his income among various commodities for getting maximum satisfaction.
Advantages of the Law of Diminishing Marginal Utility
Some important economic concepts such as law of demand, consumer's surplus, elasticity of demand and law of substitution are based on the law of diminishing marginal utility.
The Law of Diminishing Marginal Utility or Gossen's First Law
Gossen, a German economist, is the first to explain the law of diminishing marginal utility based on general observations of human behavior. Therefore, the law is also termed as ‘Gossen’s first law’.
What Does Law of Demand State? and What Are the Exceptions to the Law of Demand?
Law of demand states that while other things do not change, there is an inverse relationship between the price of a commodity and the quantity demanded at a specified time. In simple terms, people...
Functions and Responsibilities of the Central Bank and Commercial Banks
The central bank is the agency to formulate and implement the monetary policy. The commercial banks are the financial intermediaries between savers and investors as both are supply side of the money market.