Browsing Category

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. They are the inputs needed for supply. Mainly, the factors of production consist of any resource that is used in the creation of a…
Read More...

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.” It is used to indicate that one variable can change while we assume that all other variables remain the…
Read More...

Production Possibilities Frontier

The best way to show a country's available resources and the maximum two goods produced from those resources is a Production Possibilities Frontier (PPF). Production Possibilities Curve (PPC) is another name for the Production Possibilities Frontier.One of the first things to note is that often Economists make assumptions in models; such as…
Read More...

The Four Types of Economies

The way scarce resources get distributed within an economy determines the type of economic system. There are four different types of economies; traditional economy, market economy, command economy and mixed economy. Each type of economy has it's own strengths and weaknesses.The Four Types of Economies1. Traditional Economic System The…
Read More...

Economic Growth And Development

What is the difference between Economic Growth and Development? We will start by defining Economic growth and development. Having economic growth without economic development is possible.Economic growth in an economy is demonstrated by an outward shift in its Production Possibility Curve (PPC). Another way to define growth is the increase in a…
Read More...