This article describes Comparative Advantage, which is the term used to describe how one person, business, or economy, is able to outproduce one product or service compared to another person, business, or economy. Click on this post to learn about different types of comparative advantage, and to see an example of how it works in the real world.
Risk is one of the most important concepts in investing, economics, and personal finance, yet very few people really understand just how big a role risk plays in our everyday lives. Read this post to learn more about risk, and the role it plays in interest rates and psychology.
“Property Rights” usually refers to a set of fundamental rights giving citizens control over their own land, capital, and ideas. Property rights is the foundation of all free-enterprise economic systems. It is what allows people to profit from capital and ideas, without fear of seizure by the government or theft. Read this post to learn about different kinds of property rights, what weak property rights can do, and the ever growing field of intellectual property rights.
International Trade is the system under which businesses, individuals, and governments trade goods and services. This exchange from many different National economies is what makes up the Global economy. Click on this article to read about the difference between international imports and exports, the benefits of international trade, why a country would want to restrict trading, and more!
“Inflation” means that the general prices of goods and services goes up from one year to another. Click on this post to learn about the two methods used to calculate inflation (CPI and GDP Deflator), as well as how inflation impacts the economy.
The way the government organizes taxes and their spending to influence the economy is called the Fiscal Policy. Click on this post to read about the difference between fiscal and monetary policy, the different kinds of spending a government can choose and how they manage growth and deficit.
The Time Value of Money is a literal phenomenon where overtime, the value of your money increases. Click on this post for an explanation of why this is the case, and to learn about how time value of money affects businesses and interest rates.
“Labor” is how much a person works. It is the use of time an exertion of effort to produce something of value. Generally speaking, the more valuable a person’s labor is, the higher their wage. This post contains information about the the differences between skilled and unskilled labor, what affects wages, and more!
“Unemployment” is a major economic indicator measuring how much of the working population is currently looking for a job. Read this article to learn about who can be categorized as unemployed, how it is link to discrimination, and for a description of a few of the types of unemployment.
“Price Controls” are artificial limits that are put on prices. If the limit is put in place to prevent prices from getting too high, they are called Ceilings. If they are in place to prevent the price from getting too low, they are called “Floors”. Read this article for description and diagram of each.