Understanding Macroeconomic Variables and Concepts

Posted by on Feb 6, 2025 in Economy | 0 comments

Exogenous and Endogenous Variables

Exogenous Variables: Variables taken in/given out by models.

Qd = Demand(P,Y) | Demand depends on price (P) and income (Y).
If Y increases, Qd for pizza increases (Demand shifts right). An increase in costs shifts the supply curve to the left.

Sticky vs. Flexible Prices

Sticky Prices: Resistance of prices to change despite changes in the broader economy.

Flexible Prices: Adjust in the long run to market shortages/surpluses.

Gross Domestic Product (GDP)

GDP: Measures the

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OPEC, IEA, and Global Energy Dynamics

Posted by on Feb 5, 2025 in Economy | 0 comments

OPEC vs. Non-OPEC Countries

OPEC countries generally attempt to control the oil market by restricting production, though their success varies. Non-OPEC countries are often viewed as free-riders. OPEC, a coalition of 12-14 countries, is primarily driven by business and politics. The common belief that Saudi Arabia solely adjusts production to stabilize the market has been proven inaccurate on multiple occasions, although cooperation within OPEC persists despite past conflicts and failures since its

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Oligopoly and Market Dynamics: A Detailed Analysis

Posted by on Feb 5, 2025 in Economy | 0 comments

Oligopoly: Definition and Characteristics

An oligopoly is a market or industry dominated by a small number of sellers or producers. Because there are few participants, each oligopolistic firm is acutely aware of the actions of the others. The decisions of one firm significantly affect or influence the decisions of others. By exerting market power, they cause higher prices and reduced production. These companies maintain that power, partly by avoiding intense competition.

Types of Oligopoly Behavior

Non-

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Microeconomics vs. Macroeconomics: Key Economic Concepts

Posted by on Feb 5, 2025 in Economy | 0 comments

Microeconomics vs. Macroeconomics

MicroeconomicsMacroeconomics
Studies Individual IncomeStudies National Income
Analyzes Demand and Supply of LaborDeals with Aggregate Decisions
Studies Individual PricesStudies Overall Price Level
Analyzes Demand and Supply of GoodsAnalyzes Aggregate Demand and Aggregate Supply

Factors of Production

Factors of Production is the technical term economists use for resources. All things used in producing goods and services are called resources:

  • Land: Everything on the earth
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Labor Economics: Key Concepts and Applications

Posted by on Feb 5, 2025 in Economy | 0 comments

Key Concepts in Labor Economics

  1. The marginal product of labor tells us the additional [output produced by hiring one more worker].
  2. Diminishing marginal returns [occur because] hiring more employees means that each has less capital [to work with].
  3. Referring to [a] table… diminishing [returns set in with the] fourth [worker].
  4. [Referring to a table, the statement] which is INCORRECT [is that] the marginal revenue from selling [an additional unit of output is constant].
  5. [Referring to a table,] if wages
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Key Business Management Concepts and Terminology

Posted by on Feb 5, 2025 in Economy | 0 comments

Key Business Management Concepts

Nature of business: A decision-making organization involved in the process of using inputs to produce goods/services.

Entrepreneur: An individual who plans, organizes, and manages a business, taking on financial risks in doing so.

Intrapreneur: The act of being an entrepreneur but as an employee within a large organization.

  • Private sector organizations: Part of the economy run by private individuals and businesses rather than by the government.
  • Public sector organizations:
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