In the digital age, fame and fortune can be just a swipe away. Imagine waking up, grabbing your phone, and seeing thousands of new followers and comments pouring in. You’ve gone viral overnight, and suddenly brands are sliding into your DMs, offering you free products and even cash just to […]
Read more
Have you noticed that your favorite snacks cost more than they used to? Or that filling up your car’s gas tank feels like you’re fueling a rocket ship? Yup, that’s the inflation everyone has been talking about. Inflation Demand, eroding the purchasing power of money. Essentially, it means you […]
Read more
The Federal Reserve System, often referred to as the Fed, is the central banking system of the United States. It was established by Congress in 1913 to provide the country with a more stable and transparent monetary, financial, and economic system. The primary goal of the Federal Reserve is to […]
Read more
Taxes are one of the most controversial topics in economics. While most people agree that they are necessary, there is a lot of disagreement over how the tax burden should be distributed across the population. Nowadays, most taxes are designed according to what we call the ability-to-pay principle. This principle […]
Read more
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 are commonly used and accepted as payment for goods and services in an economy. This suggests […]
Read more
According to the three-sector theory, all economic activity can be classified into one of three sectors: the primary sector, the secondary sector, and the tertiary sector. As a rule of thumb, we say the more advanced an economy is, the more its focus shifts from the primary, through the secondary […]
Read more
Money supply (i.e., money stock) is defined as the total quantity of money circulating in the economy at a particular time. Many countries commonly use it as an indicator of economic performance. However, in our financial system, money is not limited to cash anymore. There are several other physical and intangible […]
Read more
Gross Domestic Product (i.e., GDP) is one of the most common measures of economic output and strength. Virtually all countries around the world measure and report their GDP regularly. This allows us to compare their economic power. Fortunately, the World Bank provides a comprehensive database of economic indicators, including current and […]
Read more
Marginal propensity to consume (MPC) is defined as the share of additional income that a consumer spends on consumption. That means it describes the percentage of additional income they spend on buying goods and services, instead of saving. Hence, the marginal propensity to consume can be calculated as the change […]
Read more
Marginal cost is defined as the cost added by producing one more unit of a good or service. It is sometimes also referred to as the cost of the last unit. The concept of marginal cost is an essential part of economic theory because it is the counterpart to marginal […]
Read more