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Economics
Everything You Believe About Economics Is Wrong
Learn about how the government can never go broke, taxes don't fund federal spending, the national debt isn't a debt, a budget surplus is bad, and money creation doesn't cause inflation.
7 Signs Your Country Is a Command Economy and Might Be Headed for Communism
Your country could be operating as a command economy without you realizing it. Here are seven signs that you might be inside an economy that is veering away from free market ideologies.
Kondratieff Waves of Innovation
An economic theory that says 40- to 60-year cycles of growth follow breakthrough technological advances.
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.
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.
The Side Effects of Poverty
Being poor is no fun; among the many negatives are bad health, exposure to crime, and lack of education.
Distributism: The Ideology of Sharing Wealth
Building on Catholic social teachings, distributism is a political theory that calls for the benefits of capitalism to be spread wider.
The Pitfalls of Protectionism: Analyzing Drawbacks
Former President Trump pulled the United States out of the Trans-Pacific Partnership and engaged in tariff wars with China, Canada, and other trading partners as he seemed to be seduced by the false allure of protectionism.
A History of Creative Taxation
Taxes are as old as sin, as certain as death, and as popular as a skunk at a lawn party, but they do fund social programs we all rely on.
Reciprocity, Redistribution, and Market Exchange
Let's explore the three "modes" of economics.
Zombie Banks and Bank Bailouts
With a negative net worth, Zombie Banks would be required to file for bankruptcy if they were operating under normal business rules.
Coke Versus Pepsi, 2001: WACC & EVA Analysis
This case examines the implications of the merger of Pepsi Co. and Quaker Oats Company for the rivalry between Coca-Cola Co. and PepsiCo and value creation by each firm.
Canons of Taxation in Economics
Four canons of taxation were first presented by Adam Smith. This article explains the original four canons of taxation as well as the total nine canons of taxation that were eventually formed later.
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..
Monetary Standard - Meaning and Types
The term “monetary standard” refers to the monetary system of a country. There are three main types of monetary standards...
Functions of Money in the Modern Economic System
The modern economy cannot work without money. Money is a medium of exchange, a measure of value, a store of value, and a standard of deferred payments.
Economics for Beginners: Supply and Demand
We've all heard the term supply and demand before, but how much do you really know about one of the fundamental principles of economics? In this article, we'll cover the basics everyone needs to know.
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. The variations in demand 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. Read on for my full explanation of this confusing law and its occasional exceptions!
Meaning of Opportunity Cost and Its Economic Significance
The concept of opportunity cost occupies an important place in economic theory. Wieser first developed the concept. The opportunity cost of anything is the foregone alternative...
Law of Returns to Scale
The law of returns to scale examines the relationship between output and the scale of inputs in the long-run, when all the inputs are increased in the same proportion.
Isoquant: Meaning and Properties
An isoquant is a firm’s counterpart of the consumer’s indifference curve. An isoquant is a curve that show all the combinations of inputs that yield the same level of output...
Economies of Scale - Meaning and Types
In the process of business expansion, producers may benefit from the emergence of economies of scale. These economies are broadly classified into two types: Internal Economies and External Economies.
Consumer’s Surplus: Meaning and Measurement
Meaning and assumptions of consumer's surplus and measurement of consumer's surplus: The law of diminishing marginal utility approach and the indifference curve approach.
Indifference Curve Analysis vs. Marshallian Cardinal Utility Theory
Indifference curve analysis possesses certain distinguishable and unquestionable merits over Marshall’s cardinal utility analysis. This article discusses the undeniable merits of indifference curve analysis.
How Do Income and Substitution Effects Work on Consumer’s Equilibrium for Giffen, Normal and Inferior Goods?
A look at the income and substitution effects on Giffen goods. What will be the income effect in case of an inferior good? This article explores various answers.
The Hicksian Method and the Slutskian Method
This article will discuss the meaning of price effect, income effect and substitution effect (aka, the Hicksian substitution effect), as well as Slutsky's and Hicks' methods.
How to Derive Consumer's Equilibrium Through the Techniques of Indifference Curve and Budget Line
This article will help readers gain a better understanding of consumer's equilibrium and explain how to derive it graphically.
What Are the Properties of the Indifference Curves?
An indifference curve represents level of satisfaction, and each person holds a unique set. All indifference curves contain common characteristics and properties.
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 ‘Gossen’s first law.'
What Does Law of Demand State? What Are the Exceptions to the Law of Demand?
The 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.
Functions and Responsibilities of the Central Bank and Commercial Banks
The functions of a central bank include formulating and implementing monetary policy. The commercial banks are the financial intermediaries between savers and investors as both are supply side of the money market.
Stable and Unstable Equilibrium
There are three main concepts of balance in physics: stable equilibrium; unstable equilibrium, and neutral equilibrium. Prof. Schumpeter explains the three positions with a simple illustration.
Use of Mathematics in Economics
How mathematics is important for the better understanding and study of various economic theories.
The Top 100 Indian Businessmen and Entrepreneurs
!00 of the best businessmen and businesswomen of India are here in this comprehensive list. Learn the real stories of the most successful Indian entrepreneurs.
Economic Growth Strategies for Hong Kong and Singapore
I originally wrote the base paper as part of an assignment for my Econ 224 Macroeconomics class over at American InterContinental University Online. I received an A on the paper, although it was a bit of a bear for me to write. There...
Factor Proportions Theory Explained
The factor proportions theory of international trade is still widely accepted today.
Industrialization and Economic Development
This article discusses the importance of industrialization and the role of industry in economic development. The developed countries of the world broke the vicious circle of poverty through industrialization.
What Is the Role of Human Capital in Economic Development?
Matters of economic of growth and decline hinge on the population. This is called human capital, and to truly understand the world, we must understand the role that populations play in an economy's growth or decline. This article will help you understand how human capital reshapes an economy.
Types and Functions of Economic Systems
Learn about the various types and functions of economic systems.
Differences Between Supply Side and Demand Side Economics
What is the best way to stimulate an economy? Is it best to lower taxes or increase wages, both or neither? These are questions which both Democrat and Republican politicians debate in the course of attempting to determine the best path for growing...