The production possibility curve or production possibility frontier is a graphical representation that shows the combination of outputs that might be produced by the economy using available production factors and production technology.Take an
Economic Context
Hidden Unemployment: Types, Causes, Effects on the Economy
What's it: Hidden unemployment refers to people who are unemployed, but not reflected in official unemployment rates. It includes those who stopped looking for work due to discouragement and those who worked but were underused. Sometimes, the term
Discouraged Workers: Why the Unemployment Rate Might Lie
Discouraged workers are people of working age who stop looking for work. They usually stop looking because they are discouraged after not finding a job. Because they are not actively looking for work, these people are excluded from the labor force
Keynesian Economics: 2 Key Drivers of Economic Growth (Explained)
Key drivers of economic growth have long been a subject of debate among economists. In the early 20th century, the prevailing view held that the free market left to its own devices, would naturally achieve full employment and economic prosperity.
Unemployment: Understanding Its Impact, Types, Causes and Solutions
Unemployment disrupts the flow of the economy and significantly impacts individuals and businesses alike. It refers to the state of individuals who are actively seeking work but are unable to find employment. This phenomenon not only affects a
Economic Growth: Engine for Prosperity – Formula, Calculator, Factors, Impacts
Economic growth refers to an increase in an economy's output over time. It can be short-term or long-term. In the short run, growth represents an increase in real output, usually seen from changes in real GDP. Meanwhile, in the long run, growth
Pure Competition: Meaning, Characteristics
Pure competition is another term for perfect competition. In this market structure, there are many producers and consumers, each not large enough to influence market supply and demand. Marketed goods are homogeneous and are a perfect
Why is economics a social science?
Paul Samuelson, an economist, said, "economics is the queen of the social sciences." It reveals various aspects of human behavior and interaction, whether as individuals or groups when faced with scarcity.Before discussing how economics is
Demand-Pull Inflation: Too Much Money, Rising Prices [Causes, Solutions]
What's it? Demand-pull inflation is a type of inflation caused by an increase in aggregate demand. In a model of aggregate demand-aggregate supply, it occurs when the aggregate demand curve shifts to the right.Unlike cost-push inflation, which
Why the GDP Deflator Might Be Better Than the Consumer Price Index (CPI) to Measure Inflation
Accurately measuring inflation is a critical economic puzzle, impacting everything from central bank policies to household budgets. Two prominent tools used to gauge inflation are the Consumer Price Index (CPI) and the GDP Deflator. While the CPI
Structural Budget Deficits: Understanding the Long-Term Impact on Debt and Economy
Structural budget deficits are a hot topic in economics, often mentioned in news headlines but rarely explained clearly. Simply put, it occurs when a government spends more than it collects in revenue, and this gap persists even during economic
Structural Unemployment: Skills Gap and The Changing EconomyÂ
Structural unemployment disrupts the job market by creating a mismatch between the skills employers need and the skills workers possess. This skills gap arises from fundamental shifts in the economy, leaving many workers unemployed even during