What's it:Â Deregulation refers to reducing or removing regulations to promote economic activities, competition, and free markets. Deregulation trends gained popularity due to new trends in economic thinking, criticizing government regulations'
Economic Context
Total Variable Cost: Meaning, Examples, Curve, Importance
What's it: Total variable cost is the sum of all variable costs. Suppose you have data on variable costs per unit. In that case, you can calculate this by multiplying by the quantity to get the total variable cost figure.Variable cost varies
Auction: Types, How They Work and Why They Matter
What's it: An auction is a selling method where prices have not yet been set and are determined through an open and competitive bidding process. The auctioneer acts as the selling agent in most cases and receives a commission on the sale
Common Market: Freedom & Growth (Trade, Labor, Investment) + Examples, Pros, Cons
What's it? A common market is economic integration in which each member country applies uniform external tariffs and eliminates trade barriers for goods, services, and factors of production between them. It is a more advanced economic integration
Non-Tariff Barriers: Hidden Hurdles in Global Trade – Types, Reasons, Pros, Cons
What's it: Non-tariff barrier is an obstacle to restricting international trade through non-tax or duty instruments. Together with tariff barriers, they form trade barriers.Non-tariff barriers have an impact on the flow of goods into and out
Induced Expenditure: Definition, Components, Examples, Formula
Induced expenditure, on the other hand, is the opposite. It refers to spending that varies with the level of income. The more income people have, the more they tend to spend. This article will focus on induced expenditure, explaining its components,
Kondratieff Cycle: Long Waves of Innovation and Economic Growth
The Kondratieff cycle, also known as the long wave theory, proposes a fascinating concept: the existence of long economic upswings and downswings lasting for decades. This theory, named after Russian economist Nikolai Kondratieff, suggests that these
Horizontal Price Fixing: Meaning, Examples, Impacts
What's it: Horizontal price-fixing is an agreement between businesses, either explicitly or implicitly, to set the selling price for a product or service. In this case, an agreement occurs between companies under the same value chain level, for
Foreign Investment: Boosting Growth & Risks (Types: Direct vs. Portfolio + Pros, Cons)
What's it? Foreign investment is an investment by foreigners in the domestic economy expecting some benefit in the future. The two main categories are foreign direct investment and foreign portfolio investment.Direct investment involves control
Elasticity of Demand: Types, Formula, Key Factors
What's it: Elasticity of demand measures the responsiveness of a product's demand to changes in determining factors such as its price (own-price), the price of other goods, and income. To calculate this, you divide the percentage change in
The Four Pillars of the Economy: Understanding Macroeconomic Sectors
What's it? The Macroeconomic sector is an aggregate group representing economic actors. Economists divide it into four groups: household, business, government, and external sectors. Each represents an actor in the economy. The expenditures of the
Public Goods: Meaning, Characteristics, Examples
What's it: Public goods are goods that do not reduce their availability to others when you use them. And, you also cannot prevent others from using and benefiting from them. Examples of public goods are street lamps, national defense, clean air,