Latest Articles:

  1. The Utility Function (Graph, Formula & Example)

    Jun 03, 22 04:31 AM

    The utility function in economics is used in order to rank and compare differing levels of consumer satisfaction i.e. different indifference curves.

  2. Consumer Behavior Theory & Examples

    Jun 02, 22 08:12 AM

    Understanding consumer behavior and consumer buying habits is essential for firms, because it helps guide them to create the best products.

  3. The Marginal Rate of Substitution (MRS)

    Jun 01, 22 03:25 AM

    The marginal rate of substitution relates to indifference curves, and the ratio in which consumers prefer one good relative to another.

  4. The Indifference Curve & Indifference Map

    May 31, 22 06:44 AM

    The indifference curve shows bundles of goods that yield an equal amount of utility to consumers, and multiple curves illustrate the indifference map.

  5. The Budget Line & Budget Constraint (explained with graphs)

    May 31, 22 06:44 AM

    The budget line plots all combinations of goods and services that a consumer can afford given his/her budget constraint (i.e. limited income).

  6. The Marginal Rate of Transformation (Formula & Cost, with Graphs)

    Apr 28, 22 06:17 AM

    The marginal rate of transformation relates the foregone production of one good in order to increase one unit of production of another good.

  7. Capital Mobility Definition & International Capital Flows

    Apr 22, 22 07:45 AM

    Capital mobility is a term that is used to describe how easily money can move from one country to another, and it has some important implications.

  8. Capacity Constraints Meaning & Examples

    Apr 17, 22 06:20 AM

    Capacity constraints are limiting factors prevent firms from expanding production in the short-run without disproportionately higher price increases.

  9. Parallel Conduct Definition & Meaning

    Apr 16, 22 02:11 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.

  10. Sacrifice Ratio Formula & Example

    Apr 13, 22 10:24 AM

    The sacrifice ratio in economics is a short-term concept that estimates the how much production must be sacrificed in order to reduce inflation.

  11. Symmetric Information Definition in Economics

    Apr 12, 22 11:20 AM

    Symmetric information is an important requirement for the efficient functioning of markets. It means that buyers and sellers have equal product knowledge.

  12. What is Implementation Lag in Economics?

    Apr 12, 22 06:03 AM

    The implementation lag of fiscal policy refers to the time taken to get that policy into action.

Latest Articles:


Jun 03, 2022

The Utility Function (Graph, Formula & Example)

The utility function in economics is used in order to rank and compare differing levels of consumer satisfaction i.e. different indifference curves.

Continue reading "The Utility Function (Graph, Formula & Example)"

Jun 02, 2022

Consumer Behavior Theory & Examples

Understanding consumer behavior and consumer buying habits is essential for firms, because it helps guide them to create the best products.

Continue reading "Consumer Behavior Theory & Examples"

Jun 01, 2022

The Marginal Rate of Substitution (MRS)

The marginal rate of substitution relates to indifference curves, and the ratio in which consumers prefer one good relative to another.

Continue reading "The Marginal Rate of Substitution (MRS)"

May 31, 2022

The Indifference Curve & Indifference Map

The indifference curve shows bundles of goods that yield an equal amount of utility to consumers, and multiple curves illustrate the indifference map.

Continue reading "The Indifference Curve & Indifference Map"

May 31, 2022

The Budget Line & Budget Constraint (explained with graphs)

The budget line plots all combinations of goods and services that a consumer can afford given his/her budget constraint (i.e. limited income).

Continue reading "The Budget Line & Budget Constraint (explained with graphs)"

Apr 28, 2022

The Marginal Rate of Transformation (Formula & Cost, with Graphs)

The marginal rate of transformation relates the foregone production of one good in order to increase one unit of production of another good.

Continue reading "The Marginal Rate of Transformation (Formula & Cost, with Graphs)"

Apr 22, 2022

Capital Mobility Definition & International Capital Flows

Capital mobility is a term that is used to describe how easily money can move from one country to another, and it has some important implications.

Continue reading "Capital Mobility Definition & International Capital Flows"

Apr 17, 2022

Capacity Constraints Meaning & Examples

Capacity constraints are limiting factors prevent firms from expanding production in the short-run without disproportionately higher price increases.

Continue reading "Capacity Constraints Meaning & Examples"

Apr 16, 2022

Parallel Conduct Definition & Meaning

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.

Continue reading "Parallel Conduct Definition & Meaning"

Apr 13, 2022

Sacrifice Ratio Formula & Example

The sacrifice ratio in economics is a short-term concept that estimates the how much production must be sacrificed in order to reduce inflation.

Continue reading "Sacrifice Ratio Formula & Example"

Apr 12, 2022

Symmetric Information Definition in Economics

Symmetric information is an important requirement for the efficient functioning of markets. It means that buyers and sellers have equal product knowledge.

Continue reading "Symmetric Information Definition in Economics"

Apr 12, 2022

What is Implementation Lag in Economics?

The implementation lag of fiscal policy refers to the time taken to get that policy into action.

Continue reading "What is Implementation Lag in Economics?"

Apr 07, 2022

What is Legislative Lag in Economics?

Legislative Lag is the term used to describe the delay that occurs between deciding upon a course of fiscal policy actions and then getting them approved.

Continue reading "What is Legislative Lag in Economics?"

Apr 02, 2022

What is Operational Lag in Economics?

Operational lag in economics refers to the time lag between a policy being implemented and it having real effects on the economy.

Continue reading "What is Operational Lag in Economics?"

Mar 09, 2022

Decision Lag & Information Lag

The term 'decision lag' refers to the period of time that occurs between an economic shock being recognized and then deciding what to do about it.

Continue reading "Decision Lag & Information Lag"