EconGuru » Library » Basic Economic Concepts
What is Economics…And Why Should I Care? Part 1
Instead of giving you a definition of economics, I’m going to give you an example that works on a microeconomic level but also helps explain macroeconomics by way of analogy. This week, we will look at your home and household budget as its own economic ecosystem.
What’s with all the economic rent after all?
Gross Rent: Gross Rent refers to the rent paid for the services of land and the capital invested on it. It consists of economic rent, interest on capital invested for improvement of land and reward for risk taken by the landlord in investing his capital.
Supply demand curve: right shift demand
With supply staying still and demand increasing (right shifting), both the price and quantity supplied are elevated. This is one of the most fundamental and classic graphs in Economics.
Law of Diminishing Marginal Utility
Law of Diminishing Marginal Utility
Q – quantity of good
TU – total utility
MU – marginal utility (ΔTU)
Macroeconomic Unemployment Explained
While many of us surely don’t appreciate it from a personal perspective, unemployment is unavoidable in any economy. However, it is not necessarily harmful. In a healthy economy, a certain degree of unemployment indicated as a percentage reflects the fact that there constantly are job seekers and employers voluntarily running after better opportunities for their own good.
