Microeconomics

oligopoly graph

Oligopoly Definition

Oligopoly is derived from the Latin ‘olígoi’ – meaning “few”, and ‘pōléō’ – meaning “to sell”. So loosely translated, it means ‘few sellers’. This is a key characteristic of oligopolistic markets as it is defined by a few firms dominating the market.

tariffs definition

Tariffs Definition

A tariff is an import tax on goods coming into a country. So when a good arrives at customs from sea, plane, or motor vehicle, an import tax is due based upon the current ‘schedule’.

supply and demand curve chart

What is Supply and Demand?

Supply and demand. Demand and supply. However you call it, they both interact with each other. So what is supply and demand? Simply put, supply and demand relates to the relationship between, the amount of products/services produced, the amount that people want, and the impact that has on prices.

Adverse Selection Definition (1)

Adverse Selection Definition

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.

What is Economics

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.

Consumer Surplus Definition

Consumer Surplus Definition and Example

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.

free market with people buying and selling

Why Free Markets are Important

According to the Collins Dictionary, a free market is an economic system that allows supply and demand to regulate prices, wages, etc, rather than government policy. To be defined as a free market, government must not be involved at any point during the exchange. This means that there is no government intervention, whether in the form of subsidies, tariffs and quotas, or regulation.