Scarcity: What it is in Economics, Examples & Causes
Scarcity refers to the limit upon resources that we have which force economical decision making.
Macroeconomics
The branch of economics that looks at the economy as a whole. It looks at factors which affect the wider economy rather than individuals. Examples include inflation, trade, unemployment, and economic growth.
Nominal Gross Domestic Product: Definition & Formula
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: Formula & Characteristics
Gross Domestic Product (GDP) refers to a nations economic output, including the goods it produces and services it sells.
Structural Unemployment: Definition, Causes, Example
Structural unemployment occurs when there is a change in the economic demand for a set skill or job.
Cyclical Unemployment: Causes, Effects, Examples
Cyclical unemployment is where unemployment trends in line with the business cycle.
Subsidies: Definition, Examples, How they work, Pros & Cons
Subsidies are government grants given to private companies, usually to keep prices down.
Fiat Money: Definition, Examples, Pros & Cons
Fiat money is a type of currency whereby the value is guaranteed by government decree.
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.
