What Do We Mean by Market Failures, and How Do Governments Intervene to Correct them?
Markets are places where buyers and sellers meet to exchange goods and services. Markets can be physical, like a supermarket or a flea market, or virtual, like…
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How do People Make Decisons?...Rationality, Incentives, and Trade-offs
For every case, there are multiple options to choose from because our resources are scarce. But what makes us decide this option, and not the other one? Th…
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What Are the Economics Concepts that You Need to Know?
There are 3 basic concepts of economics; scarcity, choice, and opportunity cost. These concepts help us understand how people make decisions and how they …
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What Is Economics and Why Is It Important?
Are you really interested in economics? If your answer was yes, read this article carefully to understand. Economics is a social science that studies h…
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What Are Central Banks, and What are Their Tools and Powers?
Central bank??? monetary policy? What do they mean? These are actually two important concepts in economics and finance that affect how much money there is in …
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How Do Inflation and the Rise in Interest Rates Affect Our Money?
Inflation and interest rates are two important concepts in economics and finance that affect how much money we have, how much money we can borrow, and how …
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How Do Banks Create Money in the Economy?
Banks not only deposit your money. They also create new money to circulate in the economy through a system called Fractional Reserve Banking. Using this syste…
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