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Economic Theory

A collection of Articles that aim to dive into economics as a study. You can find basic economic theory to advanced economic theory here.

quantitative easing

What Is Quantitative Easing And Why Does It Matter?

Economists tend to have a way of applying confusing terms to important actions made by governments and central banks which can definitely cause confusion...
asset price inflation

The Nasty Little Problem Of Asset Price Inflation

There is a problem hidden in the heart of economics and government statistics that has been bothering me for some time - The measure...
common pool resources

Should Governments Manage Common Pool Resources?

What is a common pool resource?  From an economics perspective: A common-pool resource (also known as a common property resource), is a type of good consisting of a natural or human-made resource system (e.g....
charlie munger vs. warren buffett

Charlie Munger vs. Warren Buffett

It’s interesting how Howard Buffett (Warren’s son) had the following to say about Charlie Munger:"I've been quoted in the past (out of context, of...
consumers

How To Encourage Consumers To Buy Any Product

What was the last thing you bought?Was it a product or a service?Now, what made you make that purchase decision? Usually, we can't directly...
financial institution

What Is The Role Of The Financial Institution In An Economy?

The Financial Institution First off, we need to understand what a financial institution is. A financial institution is basically an establishment that conducts financial transactions...

Game Theory: Can oligopolies maximize profits?

Introduction Oligopoly is a market structure with only a few sellers occupying the majority of the market share and offering a similar/identical product. The market...
capitalism vs socialism

Capitalism Vs. Socialism: Which Is Superior?

 Throughout history, the economic ideologies of both capitalism and socialism have dominated the economic, and, indeed, the political sphere.Some argue that capitalist economies...
Gas Station Prices

The Gas Station Argument: Why Direct Competition Leads To Different Prices

  Fields. Rural towns. Big cities. Different gas stations charge different prices. This is a simple principle in economics. Price elasticity of demand. To Calculate elasticity...
gold prices

The Two Factors That Influence Gold Prices

Here’s two of the most intuitive factors: Supply and demand as well as inflation. It may be an oft-overlooked point, but simple supply-and-demand economics can...

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