Conspicuous Consumption: Definition & Examples
Conspicuous consumption is where the consumer spends excessive amounts in order to highlight their wealth to society.
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 Importance of Property Rights
An efficient free market is reliant on strong property rights as a fish is to water. Its purpose is to ensure that competitive control over economic resources is resolved in a peaceful way. Rather than disputes leading to violence, they can be resolved through the legal system.
Producer Surplus: Definition, Formula & How to Calculate
The producer surplus is the difference between what the producer sells its goods for and the minimum price it would be willing to sell for.
Perfect Competition: Definition, Examples & Characteristics
Perfect Competition is a type of market structure. In short, perfect competition is a market structure whereby there are many firms that sell a similar product.
Principal Agent Problem: Definition, Examples & Solutions
The Principal Agent Problem occurs when there is a conflict in interest between ‘the principal’, and ‘the agent’.
Gini Coefficient: Definition, How to Calculate & Formula
Simply put, the Gini coefficient is a statistical measure used to calculate inequality within a nation.
Public Goods: Definition, Characteristics & Examples
A public good is a good whereby no individual can be excluded from benefiting from it. In other words, everyone can benefit from its use.
Externalities: Definition, Positive & Negative Examples
In economics, an externality refers to a cost or benefit that is imposed onto a third party.
First Degree Price Discrimination: Definition & Examples
First-degree price discrimination is where a business charges each customer the maximum they are willing to pay.
Price Discrimination: Definition & Examples
Price Discrimination is a strategy businesses use to maximise revenue. Sellers charge customers different prices based on the maximum they think a customer is willing to pay.
