Economics

Economic Schools of Thought

The Purpose Economics as a science has two purposes: To explain economic phenomenons and correlations: Microeconomics Looks at the...

Terms ⭐️ External costs are the costs that are imposed onto society ⭐️ Internal costs are the costs that the business includes ⭐️ Profit...

Grouped on the basis of certain market characteristics Describes the competition and price formation in a market through the interplay...

⭐️ Market failure is when the market alone cannot allocate the resources efficiently. Most economists assume that the market mechanism is...

Terms ⭐️ Market: Where buyer and seller meet to exchange goods and services ⭐️ Market mechanism: A mechanism that ensures that the price...

The Lorenz-curve The Gini-coefficient is probably the most used method of measuring inequality. The Gini-coefficient shows how a resource...

Terms ⭐️ Assets are properties than can be sold, e.g. cars and shares. ⭐️ Passives are more or less like debt. ⭐️ Scarcity: Economic...

A Absolute advantage If a country, individual or region has the ability to produce a service or a good at a lower unit price than another...

What is the greenhouse effect? The greenhouse effect is when short wave rays from the sun that enters the atmosphere enter the atmosphere...

Importances: Terms: ⭐️ Constant prices: Adjusts GDP for changes in inflation. ⭐️ Current prices: Measures GDP using the current price...