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1. Market Failure; Understanding Market Forces & Efficiency

   Nov 25, 24 08:41 AM

   There are various types of market failure in the efficient functioning of the economy, and their causes are many. Click here for clear explanation and examples.

2. The Tragedy of the Commons in Economics

   Nov 25, 24 08:37 AM

   The tragedy of the commons describes a situation in which individuals, acting in their self-interest, deplete a community’s shared resource.

3. Public Goods in Economics, Explained

   Nov 25, 24 08:35 AM

   Public goods are characterized by being both 'non-rival' and 'non-excludable', meaning that private markets cannot provide them efficiently.

4. The Free Rider Problem in Economics, Explained

   Nov 25, 24 08:34 AM

   The free rider problem occurs when individuals benefit from goods or services without directly paying for them, thereby leaving others to bear the cost.

5. Allocative Efficiency Explained (with graphs)

   Oct 25, 24 04:34 PM

   Allocative efficiency is one of three types of efficiencies discussed in economics, and it is best explained with some simple graphs.

6. How to Beat Stagflation (with a case study)

   Oct 24, 24 11:17 AM

   Knowing how to beat stagflation, and having the courage to to do so, is difficult for politicians because of short-term costs involved. Click here for details.

7. The Edgeworth Box Diagram Explained

   Oct 19, 24 09:58 AM

   The Edgeworth box is a graphical tool used in microeconomics to analyze the distribution of goods or resources between two agents in an economy.

8. Pareto Efficiency Explained (with a graph)

   Oct 18, 24 10:41 AM

   Pareto efficiency (or Pareto optimality) is a concept in economics that examines the allocation of goods and services among individuals.

9. The Coase Theorem Explained (with an example)

   Oct 12, 24 01:20 PM

   The Coase Theorem in economics provides a framework for understanding how the private sector can resolve 'externalities' without government involvement.

10. The Mundell Fleming Trilemma & The Impossible Trinity

    Apr 16, 24 05:21 AM

    The Mundell Fleming Trilemma presents a series of macroeconomic policy combinations that a government may wish to pursue, but each option comes at a cost.

11. The Economics of Western Decline

    Feb 29, 24 09:06 AM

    Economics has been labelled the 'dismal science', but it's actually a fascinating subject. Unfortunately, our key policymakers have applied it very poorly...

12. The Circular Flow Model in Economics Explained (with diagrams)

    Feb 21, 24 08:28 AM

    The Circular Flow Model uses one of the most well-known diagrams in economics to illustrate how income & expenditure circulate through an economy.

13. What is the Business Cycle in Economics? (Causes & Controversies)

    Feb 13, 24 04:28 AM

    The business cycle, sometimes called the economic cycle, refers to the boom bust cycle that has plagued economic growth in the modern world. But what causes it?

14. Comparative Advantage in International Trade Explained

    Feb 11, 24 01:17 PM

    The principle of comparative advantage in economics explains why there is always the potential for mutual gains from trade between two countries.

15. Costs of Production Explained (Short-Run & Long-Run)

    Feb 05, 24 05:11 PM

    The costs of production in economics are often arranged into short-run and long-run models, with the variability of capital being the dividing line.

16. What Is Inflation, And Why Is It Bad?

    Feb 04, 24 01:17 PM

    What is Inflation and why is it bad? This is a common question in economics and most people don't really have a good grasp of it, so here's my explanation.

17. What is the Isocost Line in Economics?

    Jan 30, 24 02:32 PM

    The Isocost line, sometimes called the isocost curve, is a long run graph that shows all possible combinations of labor and capital for a given total cost.

18. What is an Isoquant Curve in Economics?

    Jan 30, 24 02:32 PM

    An Isoquant curve shows different combinations of capital and labor that a firm can use to produce a given amount of output.

19. What is Productive Efficiency in Economics?

    Jan 30, 24 02:31 PM

    Productive efficiency refers to the efficient use of the inputs used to create goods & services i.e., land, labor, capital, and enterprise.

20. The User Cost of Capital (with formula)

    Jan 30, 24 02:31 PM

    The user cost of capital refers to the ongoing cost that a firm faces if it wishes to maintain a desired amount of capital stock.

21. What is a Variable Input in Economics?

    Jan 30, 24 02:30 PM

    A variable input is a factor of production that can be increased or decreased within a given timeframe. Typically, only labor is variable in the short-run.

22. What is a Fixed Input in Economics?

    Jan 30, 24 02:30 PM

    A fixed input is a factor of production that cannot be increased or decreased in the short-term. Typically, this applies to all inputs except labor.

23. The Expansion Path in Economics

    Jan 30, 24 02:29 PM

    In economics, the expansion path is a concept that relates to the growth of a firm, and how it increases its inputs to create more output.

24. Economic Efficiency Explained (Types & Models)

    Jan 30, 24 02:29 PM

    There are three main types of economic efficiency, relating to production, allocation, and timeframe. Economic inefficiency results in market failure.

25. What is Dynamic Efficiency in Economics?

    Jan 30, 24 02:28 PM

    Dynamic efficiency in economics relates to efficient growth over time, and specifically growth caused by new innovations and improved technology.