Pareto Principle: Definition, Pros, Cons & Examples
The Pareto Principle is the idea that 20% of causes lead to 80% of effects. In other words, a minority of factors cause the majority of results.
Microeconomics
The brand of economics that looks at the behaviour of individuals and businesses. In other words, it examines how consumers and businesses react to changes in variables. For example, how do consumers react to price changes and how does quality affect this decision making.
The Tragedy of the Commons: Definition & Examples
The tragedy of the commons is where shared resources are over-exploited because each individual is following their own self-interest.
Asymmetric Information: Definition, Causes & Examples
Asymmetric information or information asymmetry is where one party in a transaction has more information than the other.
The Invisible Hand: Definition, Pros, Cons & Example
The invisible hand was first coined by Adam Smith who explained how the self-interest of the individual benefits the rest of society.
Social Capital: Definition, Types & Examples
Social capital refers to the links and bonds formed through friendships and acquaintances.
Coase Theorem: Definition & Example
Coase theorem is the idea that under certain conditions, the issuing of property rights can solve negative externalities.
Regressive Tax: Definition, Pros, Cons & Examples
A regressive tax is where the tax rate falls for those who are in higher income brackets.
Consumer Goods: Definition, Types & Examples
A consumer good, also known as a ‘final good’, is the end product a business produces and is purchased by the consumer.
Progressive Tax: Definition, Pros, Cons & Examples
A Progressive tax is where taxes increase in line with incomes.
Economic Goods: Definition, Types & Examples
An economic good is a product or service that is provided to meet the needs and wants of consumers.
