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Market failure
Market failure The failure of the market to allocate resources efficiently. Market failure result...
Government interventions
Taxes Charges that are imposed by governments on people and business. Direct taxes Taxes the i...
Fundamental
Positive economics Positive economics deals with areas of the subject that can be proven to be r...
Elasticities
Elasticities The responsiveness of an economic variable (such as the quantity demanded or supplie...
Demand and supply
Market A place, physical or virtual, where buyers and sellers of goods and services meet to make ...
Cost and marginal values
Firm A business organization that buys or hires factors of production in order to produce goods a...
Behavioural economics
Utility The happiness of satisfaction that consumer receives from the consumption of one product....
Unemployment
Aggregate demand for labor (ADL) The total demand for all the labor that produce an economy’s goo...
The level of overall economic activity
The circular flow of income model A simple model of the economy showing flows of goods and servic...
Supply-side policies
Supply-side policies Supply-side policies aim at increasing potential output (the overall product...
Inflation
Inflation A persistent increase in the average price level in the economy, usually measured throu...
Inequality
Inequality & equity Equality in distribution of income = a narrow wealth gap Equity in distributi...
Economic growth
Economic growth An increase in the total output of goods and services (real GDP) in an economy ov...
Demand-side policies
Governments earns revenue primarily from: Taxes (direct and indirect) Sale of goods and services...
Aggregate demand and aggregate supply
Aggregate demand (AD) The total planned expenditures (spending) by households, firms, government ...
Protectionism
Tariffs A tax impose on imported goods. (regressive tax). It is regressive because the tariff on ...
Strategies 3
Non-government organization The private organizations that pursue activities to relieve suffering...
Strategies 2
Multinational competition Companies that have established a presence has productive units in more...
Strategies 1
Import substitution To reduce domestic consumers’ dependence on imported goods, for which they su...
Introduction
International trade It means the exchange of goods and services between countries. Cost and Benef...