Most Popular Posts of 2018

Most Popular Posts of 2018

With the beginning of 2019, another exciting year has passed for Quickonomics. That means, it’s time for our annual review of the most popular posts again. Over the course of last year, Quickonomics has managed to grow its audience even further and strengthen its position as a reliable online source in the […]

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Causes of Monopoly Markets

Three Causes of Monopoly Markets

In an economic context, a monopoly is a firm that has market power. That means, unlike firms in a competitive market, a monopolist has the ability to influence the market price of the good or service it sells. By definition, a firm is considered a monopoly if it is the […]

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The Limits of Homo Oeconomicus

The Limits of Homo Oeconomicus

In economics, we often assume that people act like what we call a Homo Oeconomicus. That means, they are always rational. More specifically, a Homo Oeconomicus always maximizes utility (as a consumer) or profits (as a producer). To do this, they rationally weigh all the costs and benefits and always chose […]

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How to Calculate Elasticities Using the Midpoint Method

How to Calculate Price Elasticities Using the Midpoint Formula

Price elasticity of demand is a measure that shows how much quantity demanded changes in response to a change in price.  It is calculated as the percentage change in quantity demanded divided by the percentage change in price (see also Elasticitiy of Demand). However, as you will notice sooner or […]

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Production Possibility Frontier

How to Draw a Production Possibility Frontier

The production possibility frontier (PPF) is a graph that shows all maximum combinations of output that an economy can achieve, when available factors of production are used effectively. It is also known as the transformation curve or the production possibility curve. The PPF is a great concept because it beautifully […]

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How to calculate equilibrium price and quantity

How to Calculate Equilibrium Price and Quantity

In economics, the market equilibrium is defined as a state in a market where there is no pressure for change. That is, there is no pressure for price to move up or down. The primary forces behind this are supply and demand. As long as demand is greater than supply […]

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World's Top 10 Economies by Imports

World’s Top 10 Economies by Imports

In our globalized economy international trade is one of the most critical drivers of economic growth. While virtually all countries engage in international trade, some of them are more active than others. We have already created a list of the world’s top 10 countries by exports a while ago.  But for […]

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World's top 10 Economies by Exports

The World’s Top 10 Economies by Exports

International trade is one of the most important drivers of economic growth. Most countries export a significant share of the goods and services they produce to other countries. These exports are extremely important, because they have a direct impact on economic growth, employment, and the standard of living within the […]

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Ordinary Goods vs Giffen Goods

Ordinary Goods vs. Giffen Goods

The law of demand is one of the most fundamental economic concepts. It states that the quantity demanded of a good decreases as its price increases (and vice versa). While this holds true for most goods and services, there are some exceptions to the rule. Therefore, we can distinguish at […]

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Limitations of the Consumer Price Index (CPI)

Limitations of the Consumer Price Index (CPI)

The consumer price index (CPI) is a measure of the overall price level of goods and services bought by a typical consumer in a particular economy.  Its goal is to measure the cost of living and show the effects of inflation on individual consumers. However, like most indicators, the CPI […]

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