A public good is a widely available good or service that is non-rival and non-excludable. Examples include public services like police and fire departments, while professional services and limited access medicines are not public goods. Technological advances have created new types of public goods, such as open source software. In economic terms, a public good […]
A philosophy of economics explains economic outcomes and seeks to predict them based on social behavior. It includes different groups of thought and actively studies macroeconomics. Political parties have different economic views, and economists use research methods to prove their theories. A philosophy of economics is a set of theories or hypotheses that explain various […]
Input-output models describe economic relationships and can be used for forecasting and analyzing effects of changes. Wassily Leontief developed the model and received a Nobel Prize. The models can analyze individual companies and related concepts include economic base analysis and shift-shift analysis. An input-output model is a way of describing the economic relationships between suppliers […]
To pursue a career in managerial economics, one needs a degree in economics, understanding of business economics applications, and strong mathematical skills. A formal university education is almost a requirement, and advanced degrees allow individuals to focus on specific concentrations. Managerial economics requires a basic understanding of economic applications and mathematical or quantitative models. A […]
A master’s degree in energy economics can offer many opportunities, with global clean energy spending predicted to reach $1 trillion by 2020. Consider the area of specialization, courses required, and additional training in related fields. Many schools offer this degree, and additional training can be found at seminars or symposiums. Those who are concerned with […]
To earn a PhD in behavioral economics, one must first complete an undergraduate and graduate degree in economics or a related field. It is important to take courses in behavioral economics and work with a consultant to prepare for a doctoral program. Completing a master’s degree in economics can also help prepare for a PhD […]
To earn a PhD in economics, one must graduate from high school and an accredited institution, take the GRE, and apply to a graduate school. Doctoral students focus on graduate courses for the first two years and research their dissertation in the following years. Economics is a social science that, at its most basic level, […]
Gaining professional experience in economics requires formal education, research and project management skills. Internships and work experience in related fields can help, as can obtaining advanced degrees and developing expertise in a specific discipline. Gaining professional experience in economics requires formal education and the development of research and project management skills. Internships and work experience […]
Surplus economics is the positive effects of assets exceeding liabilities, used to measure a nation’s or company’s economic wealth. It can be generated through tax revenues, consumer spending, and cash flow investments. It is an important trade indicator for managers to understand the true value of their company’s business operations. Surplus economics is generally defined […]
Development economics covers more than just economic issues, including working conditions, healthcare, and education. When choosing books, consider your specific interests and the authors’ perspectives. Professionals in this field work for international agencies, governments, and universities. Books may focus on monetary policies, organizations like the IMF, or the effects of international trade on developing economies. […]
Voodoo economics, or supply-side economics, uses tax cuts to increase labor and savings. While it was intended to reduce inflation and national debt, it had mixed results and led to an increase in national debt and reduction of social programs. It is still debated whether it works in controlled situations. Voodoo economics is a derogatory […]
Willingness to pay is the maximum amount a consumer believes a product or service is worth, and is considered when setting prices and conducting consumer studies. It varies depending on personal assessment, branding, and value. Companies aim to hit a price point that generates profits, and this concept plays into cost-benefit analyzes and efficiency studies. […]
Positive externalities occur when a transaction benefits parties not directly involved. Examples include property improvements and pollution reduction. Such events can have far-reaching effects, benefiting future generations. A positive externality is a type of benefit that generates some kind of additional benefit for the parties that weren’t directly involved in the original transaction. With this […]
Input-output models show economic relationships between suppliers and producers. They’re used for forecasting industry profitability and analyzing the effects of economic changes. Wassily Leontief developed the model and won a Nobel Prize for it. The models can be applied to large-scale and individual systems, and related concepts include economic basis analysis and shift-share analysis. An […]
Participatory economics, or parecon, proposes a new economic model that eliminates the binary of capitalism and socialism. It suggests restructuring workplaces, eliminating senior management, and paying based on effort and sacrifice. Prices would be set by community councils, and trade credits would replace money. Critics cite bureaucracy and inconsistencies, but the theory opens up new […]
The short run is a fixed period of time where production capacity cannot be increased, while the long run allows for an increase in capacity. In the short run, a decrease in supply or an increase in demand causes prices to rise, but in the long run, prices return to normal levels as capacity adjusts. […]
Behavioral economics studies how psychology affects economic decision making. It suggests that people often act on “rules of thumb” instead of rational thought, are influenced by how a problem is presented, and can be affected by market inefficiencies, herding, and groupthink. Understanding emotional decision making is important for predicting economic trends. Behavioral economics is the […]
Development economics examines the factors necessary for economic development, including public welfare, education, health, and freedom. It recognizes that there is no formula for achieving economic development and that social and political strategies are also important. The Human Development Index, gender-related index, and Human Poverty Index are used to measure economic development, poverty, and income […]
Price systems regulate production and consumption by determining the value of goods. Free systems rely on supply and demand, while fixed systems are controlled by the government. Mixed systems combine both approaches and are common in modern economies. A price system in the economy has the function of regulating the production and consumption of goods […]
Signaling in economics involves transferring information between parties for mutual satisfaction. The party conveying information is the agent, and the receiver is the principal. Ethical reporting requires truthful information. Reporting is part of contract theory, aiming to balance rewards and skills for all parties. The concept of signaling in the field of economics has to […]
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