Supply & DemandThe supply and demand for goods at different prices. These are basic forces that are used to model production, prices and behavior.
MarketsCompetition in markets that explains things like prices and quality improvement.
Market FailureInefficient markets such as a monopoly that artificially raises prices and decreases quality.
Monetary & Fiscal PolicyInterest rates, money supply and government spending and its impact on growth, unemployment and inflation.
CapitalTangible things such as machines and intangible elements such as human talent that are expected to create value in the future. For example, a business cycle where an industry invests in capital when prices are high causing prices to fall and capital investment to cease.
Government PolicyThe impact of taxes, regulations and government services such as education and healthcare. For example, competition tends to breakdown without laws governing monopolies and anti-competitive behavior.
SustainabilityEnvironmental and social problems can be modeled in economics using foundations such as common goods and quality of life.
|Overview: Economics Definition|
|Definition||The science of value creation and distribution.|
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