…well as other economic ideas, principles, and theories. The blog’s tongue-in-cheek tagline is “Economics and the mid-life crisis have much in common: Both dwell on foregone opportunities.” THE ENLIGHTENED ECONOMIST…
…algorithms in search engines like www.monster.com and www. indeed.com can offer applicants job listings that accurately meet their qualifications and preferences more quickly. 2. Access to Resources Access to the…
…some real-world examples that come close to perfect competition—these are generally very competitive, liquid markets for comparable commodities. Here are several industries that exemplify elements of perfect competition, without actually…
…pricing in this structure. Marketing does not matter in perfect competition. Resultant long-run allocative efficiency: With monopolistic competition, allocative efficiency does not result (P > MC). With perfect competition, there…
…X. For Red, 1 unit of Good X ‘costs’ 5/7 or 0.71 units of Good Y, while for Black, 1 unit of X ‘costs’ 0.67 units of Good Y. Consequently,…
…many examples of command economies throughout history as well as contemporarily. Here are a few of the most notable examples of command economy countries: Russia/USSR: The world’s first communist command…
…thought, money, banking, finance, macroeconomics, public choice, business cycles, health care, education, international trade, and more are major focal points. Learn More Economics Update American Marxian economist and Professor Emeritus…
…cost. If they don’t, then competitors will eat away their profits. There are different forms of capitalism, including laissez-faire/free-market capitalism, welfare capitalism, state capitalism, and others. The distinctions between these…
…behavior. Examples of harmful effects of unethical cost reduction measures include polluting the environment or exploiting (overworking, under-paying, preventing workers from unionizing etc.) workers. Government intervention is necessary to limit…
…the origin of economic value by the physiocrats, a collection of French economists who came before the better-known classical political economists (Smith, Ricardo, Marx, and others). 2. Labor Labor, as…
…provided to the Gravatar service to see if you are using it. The Gravatar service privacy policy is available here: https://automattic.com/privacy/. After approval of your comment, your profile picture is…
…the business—adds little to no cost and only results in greater profits. This is true of numerous large-scale online businesses, including Amazon, Walmart.com, Etsy.com, Target.com, and so forth. 7. Risk-bearing…
…and provide goods and services at an affordable rate. However, in reality, most command economies tend to focus on the most valuable resources like oil. China or D.P.R.K. (North Korea)…
…efficient utilization of scarce resources. 2. Specialization Free trade leads to specialization, where a country only produces goods that they are efficient at, i.e., in which they have a lower…
…for cyclical unemployment are “deficient-demand” or “Keynesian unemployment“ What these three terms have in common is the main factor causing unemployment demand. “Deficient-demand” means that the aggregate demand in an…
…of “1,000 sphygmomanometers and cuffs.” In this case, there is a discrepancy, and the documents will be rejected unless the buyer waives the discrepancy. 6. The Commercial Invoice The commercial…
…(such as environmental regulations) are inexpensive. The alternative is impoverished labor moves to countries with higher-paying jobs. Two common barriers to international trade are tariffs (politically imposed) and the costs…
…(both commercial and industrial), consumer credit cards, mortgages, and the like. In more recent decades, significant economic growth has been associated with dot-com speculation as well as with a further…
…intersect. The horizontal distance (labeled NRU) between LF1 and Labor Force decreases as real wage increases because, at higher wages, it is more likely a person would accept it without…
…(Kahneman and Tversky, 1979). For example, Kahneman and Tversky gave the following sets of choices to 95 participants: Set 1 – Option A: receive $4,000 with probability .8 or…
…street lamp, even though they haven’t paid for it. Public goods have two characteristics that set them apart; they are non-rival and non-exclusive. Non-exclusive means once you provide it for…
…after eating them a few times (her taste aversion can be “extinguished”). The allergic woman will also like the smell of peanuts, which the taste-averter won’t” (Camerer et al. 2005)….
…derived demand: raw materials, processed materials, and labor. In the case of custom-made bookshelves (for instance), the first step is the raw materials: that might be wood harvested from a…
…unwilling to move: housing costs (as discussed in the examples section below), family ties, lack of savings (the process of moving, itself, does cost money), and many other personal factors….
…to dominate the industry are Verizon (VZ), Sprint (S), AT&T (T), and T-Mobile (TMUS). For smartphone operating systems, Android, iOS, and Windows are the most prevalent options. Mass media is…
…choice made.” It relies on assumptions of completeness (that a decision can always be made), transitivity (consistent choices in different scenarios), independence (an irrelevant choice won’t change anything), and continuity…
…3,000. This amount is the town’s entire labor force. Therefore, using the unemployment rate formula: Unemployed / Total Labor Force = 500/4,000 = 12.5% Types of Unemployment 1. Seasonal Unemployment…
…game. However, with the advent of the smartphone, now you had access to a massive selection of games. They ranged from”purely free” (ad supported), freemium (with microtransactions) to premium games….
…around the idea of the gig economy, and this number will only continue rising. Some popular examples include Uber, a ridesharing service, Airbnb, a home-renting website, and Upwork.com, a website…
…Revenue Sources: Baker, D. J., & Berry, C. H. (1953). The Price Elasticity of Demand for Fluid Skim Milk. Journal of Farm Economics, 35(1), 124–129. JSTOR. https://doi.org/10.2307/1233648 Burke, P. J.,…
…and to purchase more winter coats on exceptionally cold winter days (Busse et al., 2012; Mela et al., 1996; Conlin et al., 2007). While there are many variations of the…
…in CPI) by 100 (the starting CPI). That is 98 ÷ 100 = 0.98. Convert that number to a percentage, multiplying it by 100 to get 98%. Now we understand…
…(i.e. labor, capital, land, and entrepreneurship). Successful policies lower the natural rate of unemployment. Some economists also believe that successful supply-side policies can contribute to long-term economic growth without increasing…
…well-known example, often used as the quintessential model of a natural monopoly. Simply, it rarely makes sense to have multiple sets of railroad tracks, stations, etc. for the same purpose—and…
…Discounting Decision-making and discounting can be described mathematically. A general formula for time discounting is: Ut = D(0)ut + D(1)ut+1 + D(2)ut+2 + … where Ut is the present utility,…
…to be real capital (for instance, machinery, equipment, buildings, and so forth). With additional, variable factors of production (commonly labor), the marginal returns (that is, additional output) for each additional…