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...