Search over 10,000 free study notes

Opportunity cost is defined as the next best alternative foregone. An example of this is:  Someone gives up going to see a movie to study for a test in order to get a good grade. The opportunity cost is t...

A current account deficit arises when import expenditure exceeds export revenue. An increase in labour productivity implies that there is an increase in efficiency in production and also a rise in output ...

Automatic stabilizers are a form of autonomous adjustment that the economy does in booms and recessions. To understand automatic stabilizers we need to first know how fiscal policy works and know what a b...

The short-run is defined as the period during which one cannot vary at least one of the factors of production, i.e. at least one factor of production is fixed. The long-run is defined as the period during...

Price elasticity of demand (PED) is a measure of the responsiveness of demand for a product after a change in that product’s price. It is calculated with the following formula: PED = %change in quantity d...