Introduction to Supply

Supply is the amount of a good or service that a firm is willing and able to offer for sale per period of time. The Supply Curve (SC) shows the relationship between the price of a product and the quantity of the product businesses are willing to sell at that price. In the labor market, the supply of labor is the amount of time per week, month, or…
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Lorenz Curve and Gini Coefficient

The distribution of Income in an economy is represented by a Lorenz Curve and the degree of income inequality is measured through the Gini Coefficient. One of the five major and common macroeconomic goals of a government is the equitable (fair) distribution of income.The Lorenz CurveThe Lorenz Curve, the actual distribution of income…
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Availability Bias

Availability bias describes the way in which human beings are biased toward judging events’ likelihood/frequency based on how easily their minds can conjure up examples of the event occurring in the past. For this reason, if we’re trying to judge whether something is likely to happen (to make a risk assessment), if a similar event has occurred…
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Trade Barriers

No country however rich or large can make everything it needs or has all the resources it requires for its manufacturing industries. Yes, some countries are against free trade. They believe that free trade is bad for their economies and hurts growth and employment. So, what are the arguments used to impose trade barriers? International trade…
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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…
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Say’s Law

Say’s Law is short for “Say’s Law of Markets,” which states that the production of goods produces its own demand. In other words, supply creates its own demand.People are paid to create goods and/or services, and can then spend that money on other goods/services. And there’s no point in holding onto money for long periods without spending it,…
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