The Three Types of Economic Indicators

A large part of economics has to do with numbers. In fact, many economic issues can be solved if you have the right formula and enough data. Fortunately, there is no shortage of data these days. Dozens of economic reports and indicators are published every week by government agencies and private organizations. […]

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The Four Factors of Production

The Four Factors of Production

The four factors of production are one of the foundations of economic activity. They describe all the inputs or resources that are used in the production of goods and services. The classical factors of production include land, labor and capital. In recent years however, a forth factor has been added […]

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Diminishing Marginal Utility

The concept of marginal utility is one of the most fundamental principles of economics. It describes the additional satisfaction an individual gets from consuming one more unit of a good or service. This information is critical for predicting and explaining consumption decisions. Although actual utility cannot be measured in hard […]

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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 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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