Gross Domestic Product (GDP) is a measure of the total economic output a country makes in a given year, and indicates the total size of the economy. Want to learn about how it is calculated? This article will answer that question, and more!
Economics Lessons! This is just a sample. Our Economics lessons combine reading, videos, infographics, and quizzes to ensure concept mastery.
The government has two main ways it tries to influence the economy – through Fiscal Policy and Monetary Policy. Montetary policy involves the government directly injecting cash into the economy through government spending.
“Inflation” means that the general prices of goods and services goes up from one year to another. There are a few ways to calculate inflation – from a simple “basket of goods” compared over time, to complicated economic models looking across thousands of factors
In any society with a market-based economy, the government must: ensure the common defense, promote economic growth, and strive to maintain a just society. All three of these tasks are related to the economy in one way or another, meaning everything the government does will have an impact on the economy.
The Time Value of Money is a concept that a dollar in your pocket today is worth more than a dollar tomorrow – because you can use it right away. The time value of money is determined by interest rates and opportunity cost – what else could you be doing with that money?
Building the next “Big Thing”. Being your own boss. Getting the full rewards for your work. There are a lot of reasons to start a business (along with lots of risks), but taking the plunge is a step every entrepreneur has to face if they plan on striking out on their own.
“Credit” is when you have the ability to use borrowed money. This can come in many different forms, from credit cards to mortgages. There is a wide range of ways to use credit, which means that it is often a challenge for beginners to learn all the different ins and outs of using credit.
Interest rates are a percentage that is used to calculate how much a loan or investment grows over time. A “Nominal” interest rate is just the percentage on the loan – the “Real” rate subtracts expected inflation
The New York Stock Exchange (or NYSE) is the largest stock exchange in the world, where buyers and sellers come to trade U.S. stocks!
Stocks are a share of ownership of a company. If you own a stock, you are involved in some of its management decisions, and you are entitled to some of the company’s profits.