Infrastructure is crucial for economic development as it facilitates growth. Adequate infrastructure includes both rigid (e.g. airports, roads, power plants) and soft (e.g. education system, internet) components. A sound transport system is particularly important for economic development, while poor infrastructure can lead to slow economic growth and hinder globalization. The relationship between infrastructure and economic […]
An economic meltdown is a severe downturn that negatively affects people’s standard of living, often caused by major industry failures and job losses. Recovery can take years, as seen in the Great Depression and the Russian Federation’s collapse. The 2007 worldwide recession caused high unemployment and debt defaults. Local economies can also experience this, as […]
Companies doing business abroad face economic exposure, including fluctuating exchange rates, unstable governments, and the possibility of foreign countries not honoring debts. Hedging with options can offset losses and control equity. Long-term investments are necessary for companies seeking revenue abroad. As the number of companies participating in international markets grows, so does the threat of […]
Public economics aims to allocate resources to benefit all individuals in a market, with redistribution of wealth being a major tenet. A command economy or wealth redistribution are common methods used, but both have their challenges. Public choice is placed in the hands of individuals, but sustainability may be an issue. The public economic theory […]
Economic think tanks study and discuss economic topics to devise policies for governments to boost the economy. They can be publicly or privately funded and focus on specific areas or adhere to certain political beliefs. Collaboration between think tanks is common, and members can come from various backgrounds. An economic think tank is a group […]
Global economic analysis studies the worldwide distribution of goods, services, and currencies to understand economic forces for personal, institutional, or national gain. International trade is cheaper due to available resources, government regulations, and manufacturing infrastructure. Economists use analytics to equalize global wages and prices and predict changes in the market. GDP, inflation, income, and unemployment […]
Labor economics studies work-related factors, including the worker-employer relationship, wages, and unemployment. It can be microcosmic or macrocosmic, and is important for business strategy and government policy. Determining fair wages involves considering factors such as market wage range, cost of living, and benefits. Labor economics is a form of economic philosophy that examines the factors […]
Attention is a limited resource that can be traded like an economic resource. In the attention economy, relevance is key, and information pollution is detrimental. Web designers and advertisers should aim to minimize distractions and provide valuable, relevant information to users. Economic attention is a theory of human attention and information processing that treats human […]
Green economic development involves developing a community’s economic model while considering its environmental needs. Strategies include reducing pollution, planning communities with transit systems and preserving natural environments. The goal is to create a sustainable community for future generations. Green economic development is a term used to describe the effort to develop the economic model of […]
Indigenous economic development aims to develop the economy of native communities through education, job creation, business training, and improving living standards. It empowers indigenous communities to achieve financial independence and security. Indigenous economic development refers to the type of economic development aimed at the native or indigenous community in a geographic territory. The term “indigenous” […]
Economic dynamics is the analysis of changes in macroeconomic and microeconomic factors in an economic system over a period of time. It includes monitoring business cycles and market behavior, such as stock market activities and interest rate changes. Economic dynamics is a term used to refer to the act of monitoring an economic system with […]
Different economic growth models, including classical, neoclassical, endogenous, and unified growth theories, explain how non-economic variables affect economic growth. Critical variables include capital accumulation, innovation, and population growth. Classical theory emphasizes agriculture’s role in growth, while neoclassical theory shows how technology drives growth. Endogenous theory adds human capital and explains technological advancement mathematically. Unified growth […]
An economic fallacy is a misleading theory or policy that is widely accepted as fact. It can result from misinterpreting information or failing to account for changing economic realities. Identifying fallacies can be difficult, and their negative effects may not be apparent until it’s too late. An example is the mass labor fallacy, which suggests […]
Economic sociology studies how economic structures and exchanges influence society and vice versa. It examines subjects such as the role of religion in economic systems and how capitalism shapes people’s lives. Contemporary economic sociology emphasizes the social consequences and meaning of economic exchanges and their effects on other social relationships. Early economic sociology began as […]
An economic meltdown is a vague term for a financial crisis with far-reaching effects, caused by various factors such as war, natural disasters, and deregulation. The 2007 global financial crisis is an example of an economic meltdown, which was caused by failures in the financial sector, housing markets, and job losses. Preventing such a crisis […]
Economic infrastructure includes communication networks, transportation, water purification, energy production, and services like education and healthcare. The government often plays a role in infrastructure development, and basic systems need to be maintained for economic growth. Private sector employment can also be considered part of economic infrastructure. Financing is a challenge for infrastructure maintenance. Economic infrastructure […]
Health economics studies the availability, access, and prices of healthcare services. It includes both direct and indirect players, and analyzes the distribution of health services in a given area. People study health economics for various reasons, including improving access to healthcare and identifying areas of profit and loss for insurance companies. The field involves maintaining […]
An economic and monetary union involves countries sharing a single currency and cooperating on economic policies and trade barriers. The European Union is the best-known example, but there are other configurations that exist. It is possible to have an economic union without sharing a currency, and vice versa. The European Union also has the ability […]
Urban economic development aims to increase economic performance and stability in highly populated areas through business recruitment, tax incentives, social programs, and development projects. The goal is to attract new residents and tourists, increase per capita income, decrease unemployment, and improve the overall quality of life. Economic development is a long-term initiative by legislators and […]
Classical economics, developed by Adam Smith in 1776, was widely used until the mid-1800s when it was replaced by neoclassical economics. It included the theory of value and monetary theory, and believed in self-regulated prices in a free market. Today, it is considered a precursor to neoclassical economics. Classical economics is often considered the first […]
