Found 235 Articles for Economics

Introduction It is important for economists and statisticians to know how many people are employed and how many are seeking employment. Since employment is one of the most trusted sources to understand the health of an economy, the rate of unemployment is a decisive factor for any economy. Rate of Unemployment in Economics The rate of unemployment is the percentage of unemployed people among the total labor force. In other words, it is the number of people unemployed but who are actively seeking employment. The unemployment rate is collected by national statistical institutes on a regular basis because the rate ... Read More

Introduction Economists often need to calculate various expenditures made by households to understand the nature and condition of the economy. As inflation and deflation are key terms that dictate the well-being of economies, the related factors such as Consumer Price Index (CPI) become very important terms for them. What is Consumer Price Index (CPI)? The consumer price index is a measure of the prices of household goods and services. The price often keeps changing and hence the government bodies (the Bureau of Labor Statistics in the US) that keep track of CPI calculate CPI on a regular basis (for example, ... Read More

Introduction Inflation is a very common term in economics. It is also pretty popular among public domains. Governments do everything to keep inflation at a low level as it impacts their credibility. However, sometimes, it is impossible to control inflation by resorting to external measures. That is why inflation is a matter of concern for both the general public and the governments. What is Inflation? When the purchasing power of a certain currency declines over time, it is referred to as inflation. The decline in purchasing power is indirectly measured by the increase in average prices of a basket of ... Read More

Introduction There is a popular belief in economics that combining the merits of two types of economies, such as capitalist and socialist, can bring better welfare for everyone. Therefore, most modern economies are a hybrid form of capitalist and command economies. While there are advantages of mixed economies, there are some monumental disadvantages too. Definition: Mixed Economy A mixed economy is a combination of a free market and a command economy. In mixed economies, there is a scope of government intervention in some specific areas. As a purely capitalist or free-market economy and a pure command economy both fail in ... Read More

Introduction The pure forms of economies, the market economy, traditional economy, and command economies have their own loophole. In order to mitigate these loopholes, a form of the economy may be needed where the best attributes of all these three economies are available. The result of such a search ends in a mixed economy. What is a Mixed Economy? A mixed economy is a form of economy where a free market co-exists with a little of a command economy. This means that although the market is free, there is some form of government intervention in specific areas of the economy. ... Read More

Introduction Economies can be divided into various forms depending on their authorities. In most common examples of economies - the capitalist and the socialist economies, the matters of the economy are mainly controlled by private players and governments, respectively. However, there is still another type of government-controlled economy that is known as a command economy. What is a Command Economy? In a command economy, there is a central authority that has complete command over the economy. Such central authorities are often the government bodies that dictate the terms of running the economy. The government is responsible for planning and dictating ... Read More

Introduction There are many types of economies depending on the nature of control of the economy. Some forms look for individual profitability while others look for social good. Capitalism is a type of unique economy where private ownership is prevalent. The capitalist economy is the opposite of the socialist economy where ownerships belong to governments and social good is put on a higher pedestal than individual gains. Capitalist Economy or Capitalism The capitalist economy or capitalism is a form of economy where private players control and manage the property. The private players can act freely on their behalf and ... Read More

Introduction Economists are always interested to know the characteristics of markets in terms of supply and demand. As the markets are governed mostly by supply and demand they have unique natures and attributes. These attributes are applicable to market economies or free-market economies. What is a Market Economy? A market economy, in economics, refers to a market system that is governed by forces of demand and supply instead of government control. In such economies, the production of goods and services depends on demand and supply. The market in the case of a free-market economy acts depending on voluntary exchange. ... Read More

What is Carbon Tax? A carbon tax is a tax levied on industries and organizations in order to limit the emission of carbon dioxide and greenhouse gases that are harmful to the environment. It is generally believed that attaching a tax to the emissions would encourage the industries to reduce the emissions of carbon dioxide. Thereby, the rate of harm caused by industries would go down. All fossil fuels that are used by industries contain carbon which turns to carbon dioxide when burned. Carbon dioxide is a greenhouse gas which means it is a gas that affects the infrared radiation ... Read More

What is Employability? Employability is the process of having skills, understanding, knowledge, and personal attributes that make individuals more likely to find and choose occupations in which they can be successful and satisfied. These skills provide help in gaining a job and keep doing the job efficiently. However, employability also refers to changing the job if required and the ability to be able to work in a new role in the organization. Some economists believe that employability is not just a set of skills but a long range of attributes and experiences that are created using higher-level learning. Therefore, employability ... Read More