Essential Economic Concepts: Supply, Demand, and Market Dynamics

Posted by on Sep 3, 2025 in Economics | 0 comments

Key Economic Concepts Defined

Economy: Basic Principles

The economy is the science that deals with the study of the satisfaction of human needs with scarce resources that have alternative uses, from which choices are made.

Economics: A Political Science

Economics is the political science that studies the laws governing the production, distribution, circulation, and consumption of material goods to satisfy human needs.

Bid: Buyer’s Willingness to Purchase

Bid: The amount of goods that buyers are willing

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R Programming Essentials: Data Manipulation & Visualization

Posted by on Aug 28, 2025 in Economics | 0 comments

R Data Handling Essentials

Importing Data

Importing CSV Files

  • Use read.csv() to import a Comma Separated Values file:

    df <- read.csv("filename.csv")

Importing Stata .dta Files

  • Requires the haven package:

    library(haven)
df <- read_dta("stata_file.dta")

Managing Your Environment

Setting and Checking the Working Directory

  • Set: setwd("your/path/here")

  • Get: getwd()

Data Frame Basics

Accessing a Column

  • Access a column using the $ operator: df$column_name

Calculating Column Mean

  • Calculate the mean of a numeric column:

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Market Structures: Competition, Monopoly, and Monopolistic Forms

Posted by on Aug 19, 2025 in Economics | 0 comments

Perfect Competition: Characteristics & Output

Characteristics of Perfect Competition

  • Many Buyers and Sellers: No single firm or consumer can influence the market price.
  • Homogeneous Products: All firms sell identical goods, making them perfect substitutes.
  • Free Entry and Exit: No barriers prevent firms from entering or exiting the market.
  • Perfect Information: Buyers and sellers have full knowledge of prices and product quality.
  • Price Takers: Firms accept the market price determined by industry supply
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Economic Production Functions and Cost Relationships

Posted by on Aug 16, 2025 in Economics | 0 comments

Key Relationships in Production and Costs

APL and AVC Relationship

If APL (Average Product of Labor) is growing, AVC (Average Variable Cost) and ATC (Average Total Cost) are decreasing. There is an inverse relationship between APL and AVC (and ATC). Specifically, you can check that:

AVC = w / APL

MC = w / MPL

Example Calculation: AVC = 2 / (0.25L) = 2 / (0.25 ยท 2Q0.5) = 4 / Q0.5

MPL and MC Relationship

If MPL (Marginal Product of Labor) is growing, MC (Marginal Cost) is decreasing. There is an inverse

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Core Economic Concepts: Systems, Models, Production, and Demand

Posted by on Aug 7, 2025 in Economics | 0 comments

Economic Systems and Resource Allocation

  • An allocation of resources answers three fundamental economic questions: what to produce, how to produce, and for whom to produce.
  • Societies employ different processes to answer these questions, varying in the degree of centralized decision-making.
  • The optimal process for allocating resources depends on a society’s specific goals.
  • The method a society uses to answer these three economic questions defines its economic system. Economic systems are identified by
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Mastering Elasticity: Demand, Supply, and Market Dynamics

Posted by on Jun 17, 2025 in Economics | 0 comments

Test your understanding of economic elasticity concepts with these practice questions and answers. This section covers various aspects of price, income, and cross elasticity, along with their implications for market behavior and total revenue.

Price and Income Elasticity Fundamentals

  1. Which of the following is not characteristic of the demand for a commodity that is elastic?

    D. The elasticity coefficient is less than one.

  2. The price elasticity of demand for widgets is 0.80. Assuming no change in the demand

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