Factors of Production

The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. The factors of production are land, labor, capital, and entrepreneurship. They are the inputs needed for supply.  Essentially, the factors of production consist of any resource that is used in the creation…
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The Ultimate List of The 10 Best URL Shortener Services

An URL Shortener is a technique in which an URL may be made substantially shorter in length and still direct to the required page. An URL Shortener achieves this using a redirect on a domain name that is short. The short URL links to the web page that has a long URL. If you're looking to create your URL shortener service, read this guide. Most …
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Discretionary Fiscal Policy

A discretionary fiscal policy is a government policy that changes government spending or taxes. Its purpose is to expand or shrink the economy as needed. The output is determined by the level of Aggregate Demand (AD), so a discretionary fiscal policy can be used to increase Aggregate Demand and thus also increase the output. This measure would…
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Price Elasticity of Supply

Price Elasticity of Supply is defined as the responsiveness of quantity supplied when the price of the good changes. It is the ratio of the percentage change in quantity supplied to the percentage change in price. The Price Elasticity of Supply is always positive because the Law of Supply says that quantity supplied increases with an increase in…
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Price Floor

A Price Floor or a minimum price is defined as an intervention to raise market prices if the government feels the price is too low. In this case, since the new price is higher, the producers benefit. For a price floor to be effective, the minimum price has to be higher than the equilibrium price. For example, many governments intervene by…
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Reference Dependent Preferences

Reference dependent preferences are those that depend on comparisons to reference points (often the current state (the status quo), past states, expectations about future states, or social comparisons). There are many examples of reference-dependent behaviors and biases, but one simple example involves just a $100 bill. If someone is told that…
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