Monopoly Power

A Monopoly is one of the four typical market structures. It describes a situation where a single firm (or individual) is the sole producer and seller of a product or service in an entire market. It is characterized through a lack of competition. As a result the monopolist has the ability to […]

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Functions of Money

For many people, money is equal to bills and coins. However, even though this is not wrong, it is only one part of the equation. Generally speaking, money is a set of assets that is commonly used and accepted as payment for goods and services in an economy. This suggests […]

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The Law of Supply and Demand

The principle of supply and demand is one of the most important concepts in microeconomics. It helps us understand how and why transactions on markets take place and how prices are determined. To learn more about supply and demand we mainly need to look at consumers and producers. Consumers In this case, […]

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Do We Really Need Economic Growth?

The principle of economic growth has become quite controversial in recent years. While many economists perceived the necessity of growth almost as a dogma, critics have become increasingly numerous. Since the global economies are continuously overexploiting natural and non-renewable resources, the idea of unlimited economic growth seems to be doomed […]

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The Importance of Economic Models

Models are a very important tool when it comes to understanding economic principles. Yet they are often subject to criticism, mostly because many of them are said to be simplistic and far away from reality. Because of that the importance of economic models is often underestimated. To be fair, the critics […]

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Macroeconomics vs. Microeconomics

The study of economics can roughly be divided into two branches: Macro- and Microeconomics. For the sake of completeness, there are certain other branches as well, but differentiating between those two will be good enough for us (for now). The two disciplines look at the economy from different perspectives. While […]

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A brief Introduction to Economics

Economics can be defined as the study of the production and distribution of goods and services within a society. However this is a very broad definition that may seem little helpful for understanding what economics is really about, especially for beginners.  In order to comprehend the given definition we first need to be […]

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