Latest Articles:

  1. 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.
  2. 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?
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. 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.
  12. 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.
  13. 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.
  14. 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.
  15. Cost Minimization Analysis, Formula & Graphs

    Jan 30, 24 02:28 PM

    Cost minimization analysis, in microeconomics, is focused on finding the most efficient combination of inputs that a firm can use to produce a given output.
  16. The Marginal Rate of Technical Substitution (MRTS) in Economics

    Jan 30, 24 02:27 PM

    The marginal rate of technical substitution explains how, in the long-run, firms can substitute various production inputs according to their marginal product.
  17. Parallel Conduct Definition & Meaning

    Jan 27, 24 12:06 PM

    Parallel conduct occurs when two or more firms in an industry behave in a similar way, e.g., by matching prices. It is anti-competitive, and may be illegal.
  18. The Net Exports Effect in Economics, Explained

    Jan 26, 24 11:17 AM

    The Net Exports Effect impacts on a country's total spending, GDP, and balance of trade. Click here for full details.
  19. What is Imported Inflation?

    Jan 26, 24 08:46 AM

    Imported inflation refers to the increase in the domestic prices due to the rising cost of imported inputs, and a strong USD makes it worse for most countries.
  20. What is Structural Inflation?

    Jan 26, 24 05:19 AM

    The term 'Structural Inflation' is sometimes used to describe as situation of rising prices as a consequence of monetary policy, but it is controversial.
  21. How Standardized Products Improve Economic Efficiency

    Dec 22, 23 01:07 PM

    Standardized products, and production techniques, offer many advantages to improve efficiency and reduce information asymmetry between buyers and sellers.
  22. The Principal-Agent Problem Explained (with 3 examples)

    Dec 22, 23 01:07 PM

    The principal-agent problem describes the conflict of interest that can arise between individuals/institutions, and the people they are supposed to represent.
  23. Moral Hazard Explained (with 3 Examples)

    Dec 22, 23 01:07 PM

    Moral Hazard is a term in economics that refers to a type of market failure. It happens when a party is able to divert some of its risks onto other parties.
  24. What is Market Signaling in Economics?

    Dec 22, 23 01:06 PM

    Market signaling in economics occurs when there is information asymmetry between buyers and sellers. By sending signals, this information gap can be filled.
  25. Efficiency Wage Theory (is it nonsense?)

    Dec 22, 23 01:06 PM

    Efficiency Wage Theory is a modern adaptation of early labor market models; it focuses on the extent to which higher wages can actually generate higher profits.

Latest Articles:


Feb 21, 2024

The Circular Flow Model in Economics Explained (with diagrams)

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

Continue reading "The Circular Flow Model in Economics Explained (with diagrams)"

Feb 13, 2024

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

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?

Continue reading "What is the Business Cycle in Economics? (Causes & Controversies)"

Feb 11, 2024

Comparative Advantage in International Trade Explained

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

Continue reading "Comparative Advantage in International Trade Explained"

Feb 05, 2024

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

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.

Continue reading "Costs of Production Explained (Short-Run & Long-Run)"

Feb 04, 2024

What Is Inflation, And Why Is It Bad?

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.

Continue reading "What Is Inflation, And Why Is It Bad?"

Jan 30, 2024

What is the Isocost Line in Economics?

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.

Continue reading "What is the Isocost Line in Economics?"

Jan 30, 2024

What is an Isoquant Curve in Economics?

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

Continue reading "What is an Isoquant Curve in Economics?"

Jan 30, 2024

What is Productive Efficiency in Economics?

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

Continue reading "What is Productive Efficiency in Economics?"

Jan 30, 2024

The User Cost of Capital (with formula)

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.

Continue reading "The User Cost of Capital (with formula)"

Jan 30, 2024

What is a Variable Input in Economics?

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.

Continue reading "What is a Variable Input in Economics?"

Jan 30, 2024

What is a Fixed Input in Economics?

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.

Continue reading "What is a Fixed Input in Economics?"

Jan 30, 2024

The Expansion Path in Economics

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.

Continue reading "The Expansion Path in Economics"

Jan 30, 2024

Economic Efficiency Explained (Types & Models)

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

Continue reading "Economic Efficiency Explained (Types & Models)"

Jan 30, 2024

What is Dynamic Efficiency in Economics?

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

Continue reading "What is Dynamic Efficiency in Economics?"

Jan 30, 2024

Cost Minimization Analysis, Formula & Graphs

Cost minimization analysis, in microeconomics, is focused on finding the most efficient combination of inputs that a firm can use to produce a given output.

Continue reading "Cost Minimization Analysis, Formula & Graphs"