Category: Economics

Total Variable Cost

So you’ve just about attended the third lecture of your commerce major and the professor has already moved on to cost and revenue concepts no sooner than he has...

Historical Periods of Deflation

Deflation is a dire economic crisis. To put it in terms of economics, deflation is marked by a general decrease in price levels of all products and services accompanied...

Open Market Operations

Even though it is considered a principal tool of the monetary policy, not many people can claim of knowing what open market operation actually means. It is basically the...

What is Marginal Propensity to Consume

You know your raise is due tomorrow. It’s been a year of hard work and you know that the appraisal is long due and well deserved. So now that you know that a...

Marginal Rate of Substitution

In the subject of microeconomics, the Marginal Rate of Substitution (MRS) is a very important concept that economists use for their calculations. This concept has been...

Microeconomics Vs. Macroeconomics

In a broad sense, microeconomics and macroeconomics are subcategories of economics. Even though they are different from each other in several aspects, they are also...

Monetary Policy Vs. Fiscal Policy

At times, we see some news articles in business newspapers that claims that “…the government has made, significant changes in its optimal fiscal and monetary...

Law of Demand

Economics is a study that deals with the production, distribution, and consumption of goods and services. Here, the study of pattern of demand and supply, and the...

Diminishing Marginal Utility

Microeconomics basically deals in individual concepts such as consumer’s demand, producer’s supply, factors of production, etc. One of the major phenomena...

Demand and Supply Analysis

Economics is a very important discipline of modern commerce, that has been progressing since the era of barter exchange. After the industrial revolution and...

Keynesian Economics

“Long run is a misleading guide to current affairs. In the long run we are all dead.” ― John Keynes Keynesian economics is basically a macroeconomic theory...

Home Economics Degree Programs Attracting More Male Students

In the 1950s, with the United States still recovering from the effects of World War II, American girls were routinely instructed in the value of women working at home...

The eBay Effect―At Home Economics 101

In a recent conversation with a friend of mine, one of us started complaining about how hard it is to sell something on eBay for the amount it’s actually worth. I...

Principle of Economics

Economic laws tell us how man behaves under certain conditions. They also provide us an idea about the results likely to follow those conditions. For example, a fall in...

Monetary Policy

In general, central banks serve the role of supervising the smooth operation of the financial system as well as monetary policy. They are generally given liberty to...