Scarcity Definition
In economics, scarcity refers to the limited resources we have. This can come in the form of physical goods such as gold, oil, or land. Or, it can come in the form of money, labour, and capital.
Macroeconomics
Nominal GDP Definition
Nominal GDP is the total economic output of a nation using current prices. In other words, it is the measurement of all the goods and services a country produces, in prices, at the time they are made.
What is Inflation
Inflation is created through excessive money creation. That is to say, money supply is in excess of economic output. Let’s say GDP grows at 2 percent. If the money supply increases by 3 percent, we could expect inflation.
What is GDP?
GDP stands for Gross Domestic Product. On its own, it may not make much sense. However, when
we split it down, the naming becomes clearer. Let us first start with ‘Gross’. It has various
meanings, but in the case of GDP, it is used as a noun. This has a meaning of ‘Complete Amount’.
Structural Unemployment Definition
Structural unemployment is where there is unemployment due to a change in the demand for specific skills and jobs. For instance, globalisation and technological advances have created structural unemployment in industries such as manufacturing.
Cyclical Unemployment Definition
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.
Subsidies Definition
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.
What is Economics
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.
The Importance of Free Trade
True free markets don’t exist anywhere in the world. This is because free markets and free trade go hand in hand. There exists no country that has free trade with every other. Although Hong Kong doesn’t operate a tariff regime, it is unable to export its products and services to others free of tariffs. Free market ideologies such as neoliberalism are attacked and concluded that they have failed.
