Introduction to Economics

Economics is a vast field of research within the category of social sciences. It deals with the concepts of supply (availability of a product) and demand (desirability of that product within a certain market), as well as the capital used to produce goods. Depending on the lens, economics could be used to describe the behavior of individuals (microeconomics) or of entire markets (macroeconomics), explain the rules and regulations behind making money (financial economics), or the methods by which low-income countries develop strong economies (developmental economics). Explore below for an introduction to this immense and varied discipline.

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Introduction to Economics
Economic Systems

The way scarce resources get distributed within an economy determines the type of economic system. There are four different types of Economic Systems; a traditional economy, a market economy, a command economy, and a mixed economy.

Prateek Agarwal
April 20, 2020
Introduction to Economics
Free Market

A free market economy is a type of economy that promotes the production and sale of goods and services, with little to no control or involvement from any central government agency.

Prateek Agarwal
April 16, 2020
Introduction to Economics
Capitalism

Capitalism is an economic system in which private individuals and/or companies own the four factors of production. The four factors are land, capital, land/natural resources, and entrepreneurship.

Prateek Agarwal
April 02, 2020
Introduction to Economics
What is Economics?

Economics, a discipline and set of methodologies within the social sciences, can be described in a multitude of ways. The field focuses on the distribution, consumption, and production of wealth; one can also say that economists study human behavior and choice regarding buying and selling.

Prateek Agarwal
March 11, 2020
Introduction to Economics
Command Economy

In a command economy system, it is not the free market but the government that makes important decisions like which goods to produce, what amount of these goods to produce, and how much they cost. The government also makes decisions about incomes and investments.

Prateek Agarwal
February 25, 2020
Introduction to Economics
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.

Prateek Agarwal
February 24, 2020
Introduction to Economics
Ceteris Paribus

Ceteris Paribus is a Latin phrase which literally translates to “holding other things constant”. Petrus Olivi was the first person to use the term with an economic context in 1295. In economics, this phrase is used to mean “all else being equal.”

Prateek Agarwal
September 01, 2019
Introduction to Economics
Production Possibilities Frontier

The best way to show a country’s available resources, along with the maximum two goods produced from those resources, is by calculating the production possibilities frontier (PPF).

Prateek Agarwal
August 23, 2019
Introduction to Economics
Economic Development

A country’s economic development is usually indicated by an increase in citizens’ quality of life. ‘Quality of life’ is often measured using the Human Development Index, which is an economic model that considers intrinsic personal factors not considered in economic growth, such as literacy rates, life expectancy, and poverty rates.

Prateek Agarwal
July 23, 2019
Introduction to Economics
Inferior Good

The term “inferior good” describes a good for which demand decrease as incomes increase. They are the opposite of “normal goods,” which are goods for which demand increases as incomes increase.

Prateek Agarwal
May 16, 2019
Introduction to Economics
Normative Statement and Positive Statement

A normative statement carries judgment. Normative statements are opinions. They are subjective statements.

Prateek Agarwal
December 04, 2018