Economics

What is economics? Economics, a relatively new discipline, is the study of the allocation of scarce resources. A social science, economics is frequently associated with business and business decision-making. Adam Smith, an 18th century philosopher, is typically thought of as the first economist, published his book, 'Wealth of Nations', in 1776. Since then, the study of economics has developed steadily, with new economic paradigms rising, including Classical theory, Marxism, Keynesianism, and Neoclassical theory. Economics is especially important in modern times as the policies and practices of governments with regard to monetary and economic policy are often determined by the positive analysis of economists. The links included herein relate to economics studies and monetary affairs, history of economics, basic economics, importance of economics and the related news about world economy.
  • Why Economic Models Fail?
    If only hypothetical projections translated into reality, world economy would have heaved a sigh of immense relief. The inaccuracy of economic models is a serious problem in our world today. Let us investigate the causes.
  • Pros and Cons of Barter System
    Barter system is the ancestor of all forms of commercial and economic exchange activities. Let's get to know this form of exchange in a little more detail and get acquainted with the various pros and cons of barter system.
  • How Does Monetary Policy Affect the Economic Growth
    Monetary policies are crucial in influencing an economy. Without efficient economic plans and organized efforts, a nation may fail to compete globally. The holistic effect of any monetary policy on a country's growth forms the gist of this article.
  • The Economy Vs. Environment Debate
    A vision to create a world where economic progress meets environmental conservation is the need of time. One cannot achieve much by just blaming the rampant industrial development witnessed in the 20th and 21st century. Changing the lifestyle for acclimatizing ourselves to the imminent food and energy crisis while still optimizing the economic development are the solutions that we have to act upon.
  • Bertrand Competition
    Bertrand's competition is an economic theory, which indicates how two firms will compete in a duopoly market, using 'price' as a weapon.
  • What is Quantitative Easing
    Quantitative easing is often considered the "last resort" monetary policy to revive the economy when all other policy interventions have failed to stimulate growth. Let's try to understand quantitative easing in detail.
  • What is Distributive Justice
    The theory of Distributive Justice deals with the distribution of 'equal material goods and services' to all the members of the society.
  • Winner's Curse Explained
    Wanting to know what is the 'winner's curse'? It is something that you might have observed in several auctions. The following Buzzle article will discuss the same in detail.
  • Sunk Cost Dilemma
    Sunk cost dilemma is a situation where in one is not able to decide whether to or not to continue a project or a deal, considering its uncertain outcome, when an individual has already invested in some resources.
  • What is a Selective Default
    The term 'Selective Default' is quite intriguing. What does it actually mean? The following article discusses selective default and its implications.
  • Current Account Vs. Capital Account
    Current accounts and capital accounts are two important concepts in the field of macroeconomics and international finance. In this article, we shall understand the difference between current accounts and capital accounts in detail.
  • Fiscal Policy Tools
    In this article, we shall try to understand the basic concept of fiscal policy, its tools and objectives in detail.
  • Bartering in Daily Life
    Barter economy has been in existence in many past cultures. Even in this age of the Internet and money-based economy, some people and cultures practice bartering system.
  • Examples of Capital Goods
    Having a tough time trying to figure out what capital goods are? Going through some examples of the same may work in your favor! Continue reading....
  • What are Capital Goods?
    Leave alone capital goods, if you think you know what 'goods' mean, think again before you nod that head of yours in confident affirmation! Welcome to the world of economics and accounting where 'goods' are a little more than 'things' or 'objects'.
  • Average Total Cost
    This article explains the concept of average total cost, its significance and the way it is calculated. Read on to understand in detail.
  • What is Marginal Benefit
    What exactly is marginal benefit and how does it affect our choices? How is it calculated? Read to find all about it...
  • Welfare Economics
    What is welfare economics? Is it practical or does it draw a hypothetical economic picture? Let's find out what exactly it is all about.
  • Gold Standard
    Gold standard has been one of the most important monetary unit that was used by various countries. In this article, we will take a look at what exactly is gold standard and the different types of gold standards...
  • Perfectly Inelastic Supply
    This article will give you some basic information about perfectly inelastic supply, and what it means from the point of view of a seller.
  • What is Comparative Advantage?
    Absolute and comparative advantage are two of the introductory topics of international economics. What is comparative advantage is what you are going to find out in detail from the following article.
  • Purchasing Power Parity
    Those of you struggling with the overwhelming concepts of foreign exchange must have wondered what determines the exchange rate between two different currencies. Purchasing power parity is a theory that is highly relevant in explaining this phenomenon.
  • Marginal Product of Labor
    As the word 'marginal' suggests, marginal product of labor is a theory that measures the productivity of extra units in an organization. Let us take a look at the topic in detail...
  • Diseconomies of Scale
    Diseconomies of scale is a rare condition in large business when the average cost of producing one unit of material increases. It is contrary to the theory of economies of scale which lays emphasis on having large organizations. Let us know about it in detail...
  • Perfectly Inelastic Demand
    What is perfectly inelastic demand? How is it identified? What type of goods and the demand for them present typical examples of this economic phenomenon? Let's find out.
  • What is Stagflation
    This article will briefly explain to you 'What is stagflation'. This is an economic situation that represents slow and negative growth, and no nation would like to find itself in such a condition.
  • Allocative Efficiency
    Allocative efficiency is a condition wherein all the available resources of an economy are allocated in the best systematic way. Let us take a look at the topic in detail...
  • Law of Diminishing Returns
    The law of diminishing returns is an important one in the field of economics and also in our daily life. Learn about the law in this article.
  • Law of Supply and Demand
    In the field of micro economics, the law of demand and supply forms an integral part of how the markets work. The world of commerce and business depends on this law and governs many business and policy decisions.
  • Price Gouging
    In the free world, where markets are free, a price gouging action or effect comes into being. Such an effect is universally present and is observed in almost all types of markets.
  • How to Calculate Opportunity Cost
    If you've survived the theory part of opportunity cost, you must be wondering how to calculate opportunity cost. Well, here's how you go about it!
  • Opportunity Cost Examples
    What theoretical pedagogy can't drive in, practical examples do! Here are some interesting opportunity cost examples that would definitely strengthen your grip on this simple yet rational economic concept!
  • What is Opportunity Cost?
    If economics sends you in a quizzical tailspin and you're currently scratching your head over what is opportunity cost, here's all you need to know about this economic concept.
  • Economic Rent
    Ever heard of an economic concept called economic rent? No? Well, you've taken the first step towards knowing this concept by hitting this page. Now, you just need to read ahead to get your doubts cleared!
  • Externalized Costs
    If you are looking for an explanation of what are externalized costs and benefits, this article is just what you are looking for.
  • Marginal Revenue Product
    What is Marginal Revenue Product (MRP)? How to calculate it? If you are looking for an answer to these questions, this article will surely be an insightful read.
  • Market Structure
    What is meant by a market structure? How many types of market structures are there? Read ahead to get to the details in the subsequent article.
  • Benefits of Free Trade
    A concise write-up about the various benefits of free trade policy which are often put forth by its advocates in a bid to promote it. Read on...
  • Pure Competition
    Any given market has three dimensions, namely, a buyer, seller, and price of the product. Micro economics is all about studying the market behavior of buyers, sellers and price. Pure competition, a theory and hypothetical market, where several buyers and sellers tend to sell homogeneous or similar commodities at the same time.
  • What is Economics
    Understanding economics requires us to have an economist's perspective on our needs, the resources we have and allocation of budgets to meet our demands.
  • Traditional Economy
    In order to understand which are the traditional economies in the world, one has to understand the meaning of this economic concept. Read on....
  • What is Economic Growth
    In the following write-up, we will put forth the details of economic growth and its effects on the nation as a whole and you as an individual. Read on...
  • Paradox of Thrift
    A brief write-up which puts forth a detailed explanation on 'paradox of thrift' or 'paradox of saving' - an economic concept popularized by John M. Keynes in the 20th century.
  • Giffen's Goods Examples
    Giffen's paradox is one of the most interesting economic phenomena. A Giffen's good is the product that seems to defy the established conventions as dictated by the law of demand. Read ahead to know more about this topic.
  • Centrally Planned Economy
    If you want to understand properly, the concept of a centrally planned economy, then read this article.
  • Economic Equilibrium
    In the following write-up, we will discuss the basics of economic equilibrium - with special reference to its definition, benefits as well as various factors which lead to its disruption. Continue reading for more information on this concept of economics.
  • Price Ceiling
    Since ages, governments and people in power have tried to control the prices of commodities by enforcing price ceilings. Such controls which are intended to benefit certain sections of society do not provide the intended benefit, on the contrary end up harming the interests of certain sections of society.
  • Planned Economy
    What is a planned economy? What are its advantages and disadvantages? Which countries of the world run their economies on this concept? Read right ahead to find out.
  • Average Variable Cost
    In this article, we shall know how to find average variable cost with the help of standard average variable cost formula and the difference between variable cost and fixed cost. So, continue reading to know more.
  • Average Fixed Cost
    This article aims at explaining the formula for average fixed cost clearly. So, continue reading to know more.
  • Total Variable Cost
    If you've just had your first brush with economics and cost accounting, you must have come across the term 'Total Variable Cost'. Wondering what it is? Well, read ahead to find out.
  • List of Economic Problems
    In the modern world, common man often directly faces certain financial losses as a result of problems facing the national economy. Here, a list of economic problems that tend to affect people and the economy has been provided.
  • Open Market Operations
    A brief write-up wherein we will put forth the details of open market operations, along with some examples which will make it easier for you to understand this concept. Continue reading....
  • What is Marginal Propensity to Consume
    The marginal propensity to consume is a pretty important part of the Keynesian theory, which a lot of Economics students need to learn. Here's an article to consume and how to calculate it to consume.
  • Marginal Rate of Substitution
    Marginal Rate of Substitution is a very important theoretical tool used in economics. It helps economists and producers understand the actions of consumers who have to often choose between different products with their limited resources...
  • Microeconomics Vs. Macroeconomics
    Understanding the difference between microeconomics and macroeconomics is one of the basics of economic studies. Continue reading....
  • Monetary Policy Vs. Fiscal Policy
    Monetary and fiscal policies, are two parallel concepts that are used by governments all across the world as welfare and reform measures. One of the basic difference is that fiscal policy is usually decided by the national government, while monetary policy is decided by central banks. The main aim of these policies which are used by governments is the minimize the fluctuation in the economy.
  • Law of Demand
    The law of demand defines one of the most important relationships in economics. The relationship between demand and pricing is of a deep interest for economists, and the law of demand describes exactly that. Read on to learn more.
  • Diminishing Marginal Utility
    The field of microeconomics often concentrates on human psychology and behavior of mankind regarding consumption and spending. Diminishing marginal utility, is one such excellent hypothesis and conception, that is applicable for a majority of goods and services that are used by mankind.
  • What is Marginal Utility
    There are several different concepts in the field of economics that all students of finance, commerce and of course, economics should know by heart. Here, I have given an explanation of marginal utility and its law for all students of economics, commerce and finance. To know more, read on.
  • Demand and Supply Analysis
    In the discipline of economics, there are several different types of analysis theories that have been put down by several different economists. The demand and supply analysis is useful for companies and small businesses to assessing market conditions and subsequently, take appropriate decisions.
  • Keynesian Economics
    A brief write-up on Keynesian economics, which continues to be one of the most important school of thought in the world of economics today, along with some information on John Maynard Keynes - the mastermind behind it.
  • Classical Economics vs Keynesian Economics
    This 'Classical economics vs Keynesian economics' article should help most students. I was also there once, a troubled (obviously) and insane (for taking on a double economics major with 8 different economics subjects) varsity student, trying to cope with the vagrancies of Classical economics and Keynesian economics. This is a 3 part article on (i)Classical Economics (ii)Keynesian Economics and (iii)Classical Economics vs Keynesian Economics.
  • Comparing Max Weber's and Karl Marx's Theories
    A comparative study on Max Weber's and Karl Marx's theories that aims to highlight differences in their approach to capitalism.
  • Characteristics of Monopoly
    Monopoly, derived form the Greek words 'monos' or alone and 'polein' or sell, can be defined as "the exclusive control or possession of supply or trade in a commodity or service". The term is extensively used in economics, referring to controlled power over the market, by an individual or company. Let's brush up a bit more on this.
  • Home Economics Degree Programs Attracting More Male Students
    The educational pursuit of home economics is attracting male students in record numbers.
  • Economy - The Good Society
    John Kenneth Galbraith - nominee for the Nobel Prize in Economics in 2003 - in his book "The Good Society. The Humane Agenda", brings to light an important idea: although it cannot be perfect, a society must tend to be stable and growing towards its best version. See more in the article below.
  • Four Stages of Business Cycle
    There are four stages of a business cycle where each step is as important as the previous one. Learn about these four vital transitions within a business organization.
  • The eBay Effect - At Home Economics 101
    eBay has redefined how we buy and sell things. It also represents the ebb and flow of demand and buying power in the American public. Forget pricing guides and financial news; eBay tells us everything we need to know.
  • Principle of Economics
    The main object of engineering economics is to produce the products and provide the services within the cost limitations. Cost limitation is an important factor which differentiates the work of an engineer from that of scientist. While working on something scientist has no consideration of cost in his mind. That is not the case with an engineer.
  • Monetary Policy
    Monetary policy is the process to manage the supply of money in such that specific goals such price stability, employment, etc., are achieved. A central bank's measures to influence short-term interest rates and the supply of money and credit, to promote national economic goals are another way to define this policy.