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The Demographic Transition Model (DTM) is a way to understand how populations change over time. It shows how societies go from having high birth and death rates to having low birth and death rates as they develop and become more industrialized. This model is very important because it helps us […]
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Taxes can be levied on buyers or sellers. However, who actually pays a tax does not depend on who the tax is levied on. In economic theory, tax incidence – which refers to the distribution of a tax burden between buyers and sellers – only depends on the elasticity of […]
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The Consumer Price Index (CPI) is an indicator that measures the average change in prices paid by consumers for a representative basket of goods and services over a set period. It is widely used as a measure of inflation, together with the GDP deflator (see also GDP Deflator vs CPI). […]
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Economics affects all parts of our daily lives. So, if you want to be an informed citizen you have to know at least some of the most basic economic concepts. This will help you understand how the world works and enable you to take well-informed decisions. Now, because we know that […]
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In economics, money is defined as a generally accepted medium of exchange for goods and services. Virtually anything can be considered money or a monetary aggregate as long as it performs what we call the three major functions of money (i.e., medium of exchange, store of value, unit of account). […]
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Four basic types of market structure characterize most economies: perfect competition, monopolistic competition, oligopoly, and monopoly. Each of them has its own set of characteristics and assumptions, which in turn affect the decision-making of firms and the profits they can make. It is important to note that not all of […]
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