Have you ever wondered how economists gauge the size and health of a nation's economy? A key metric used is Gross Domestic Product (GDP), which captures the total market value of all final goods and services produced within a country's borders over a
Economic Context
Economic Resources: Definition, Types
What's it: Economic resources is another term for factors of production. They include human resources such as labor and entrepreneurship and non-human resources such as land and capital. Sometimes we refer to them briefly as inputs or
Land as a Factor of Production in Economics
What's it:Â In economics, land doesn't just refer to land for agriculture, factories, retail space, or office space. As a factor of production, it also includes various resources contained in it, such as metallic minerals, petroleum, and natural gas.
What is Labor in Economics
What's it: As a factor of production, labor refers to the workers' efforts (physical and mental) used in the production process. It connotes what the individual contributes (services), not refer to the individual himself (workers). So, labor can
Primary Sector: Key Output, Activities, Classification, Challenges
The world around us is filled with goods and services that fuel our daily lives. But have you ever wondered where it all begins? Primary economic activities are the foundation upon which our economies are built. They are the essential extraction,
Economic Problems: 3 Basic Questions For An Economic System To Answer
What's it: Economic problems arise because we face scarcity. Our resources are limited to satisfy our unlimited wants and needs. Economics has its roots in it and studies how we allocate limited resources to meet our needs and
Ceteris paribus
Ceteris paribus makes it easy for us to analyze and draw conclusions. Of course, we should consider all critical variables when analyzing something. But, applying all variables into the analysis is time-consuming. It is also difficult to control the
Normative statements
You might find some normative statements in online articles. Some of them come from expert views on the economy and may, contrary to your beliefs. In other places, you find an expert who is good at delivering economic data. He explained in detail the
Positive Statements: Meaning, Characteristics, Examples
What you read in online media is a combination of positive and normative statements. Some of them are subjective, and others are by actual facts and theories.Definition of positive statementsPositive statements are types of objective
Production Possibilities Curve: Explanations, Assumptions, Shifting Factors
What's it: A production possibilities curve or production possibilities frontier is an economic model for describing the two goods we can produce efficiently using available resources and technology.Efficiency is important because we are
Opportunity Cost: Meaning, Importance, Examples
Choice makes you face the opportunity cost, whether you realize it or not. At some time, you may have to choose between the two options that you both want. But, because your resources are limited (for example, you don't have enough money in your
Welfare Programs: Understanding Government Assistance (Types, Pros & Cons)
Welfare programs are a cornerstone of social safety nets in many countries. They provide financial assistance and other forms of support to individuals and families facing economic hardship. These programs go beyond simply offering a handout; they