The Gig Economy

The concept of a gig economy (or sharing economy) is engraved in our human instinct. Cooperative structures that include sharing, individual choices, gifting and swapping are a basic part of any community. However, to adopt the gig economy as a business structure is relatively new.What is the Gig Economy?The term “gig economy” has only…
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Monopsony Market Structure

A monopsony is a situation of the market wherein only one buyer exists in a particular area, typically along with many sellers. These sellers end up competing for the buyer’s purchases by lowering their prices.In the case of both monopsony and the much more well-known situation of monopoly, market conditions are imperfect. However, monopolies…
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The Business Cycle

The different phases that an economy goes through over time, such as periods of booms (expansions) and economic recessions (contractions), is known as the business cycle or the trade cycle. One entire business cycle is the completion of an expansion and a contraction sequentially.The line through the business cycle is known as the trend line,…
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Structural Unemployment

Structural unemployment results from mismatches between the skills required for available jobs and the skills held by the unemployed. Even when there is plenty of job availability, this mismatch means the unemployed cannot access jobs that fit their skill sets.Structural employment is often rooted in major economic shifts. Deindustrialization…
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Adverse Selection

Adverse selection describes circumstances in which either buyers or sellers have information that the other group does not have. In these cases, when these two groups are informed to different degrees, this is known as asymmetric information.Naturally, the result is that one party has a consistent advantage over the other, which leads to…
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The Glass-Steagall Act

The Glass-Steagall Act (1933) separated depository institutions aka retail banks from investment banks and limited securities, activities, and affiliations within commercial banks and securities firms.A retail bank's primary function is to accept deposits and make loans. On the other hand, investment banks plan IPOs, help with mergers and…
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