Cyclical unemployment is where unemployment rises and falls in a reoccurring fashion and is generally linked to economic growth. So when the economy is doing well, we see a fall in unemployment. However, when the economy is doing badly, we see cyclical unemployment.
The Fundamental Attribution Error is when we think someone took an action because of their behaviour. However, the action was taken because of the situation they were in instead.
Adverse selection occurs when either the buyer or seller has more information about the product or service than the other. In other words, the buyer or seller knows that the products value is greater than its worth.
Subsidies are a way by which governments give money to private firms, usually to keep prices low, or, to protect the firm and jobs. This can come through a cash payment, or a specific tax cut.
Economics is the study of scarce resources that have alternate uses. In other words, how resources are effectively deployed. This covers the production, distribution, and consumption of goods as well as how individuals, businesses, and governments interact to allocate those resources efficiently.
Confirmation bias is where people ignore information that contradicts their existing beliefs. At the same time, they search for information that re-affirms those beliefs and views.
A consumer surplus is defined as the gap between what consumers are able and willing to pay, and the actual price paid. In other words, you may be willing to spend $5 on a Dunkin’ Donut, but you only pay $3 for it.
The homeless rate in San Francisco reached over 9,700 people in 2019. That is an increase of 30 percent in two years. Such a large upsurge now brings the city’s homeless to among the highest in the USA.
The situation looks dire for full-service restaurant workers. Since the increase to $13, the number of workers declined by over 8,000 in one year. Perhaps unsurprisingly, restaurants have also reacted by increasing prices and reducing both staff numbers and hours.
Universal Basic Income is a disaster waiting to happen The case for a Universal Basic Income (UBI) is a strong one, in some ways. A UBI would stimulate aggregate demand, help those affected by technological change, and create a basic income for the poor. Its effectiveness and impact, however, depend on how much is given …
