The Effects of a Black Market Using Supply and Demand

Q: How can we show what happens when a product is made illegal using supply and demand analysis? What does a black market look like on a typical supply/demand chart? Great question! Black markets are a subject which seem to come up in every freshman course...
 
 
 
 
 

Bottle Water Bans and Substitution Effects

As an economist who also supports environmental issues, I often get asked if it's hard to reconcile the two. I usually answer "not at all - many policies are both good economics and good for the environment". But I understand where people get the idea that the two must conflict, ..

Take Lecture Notes in Your Economics Class

The best way to be ready for your economics exams is to take good notes of your economics lectures and your readings. This article focuses on lectures. If you follow the dos and don'ts in this article you will be well on your way to understanding the class material and having a great set of notes to study from!..

 

 

 

Ace Your Econometrics Test

Econometrics is the most difficult course for Economics majors. These tips should help you triumph over your Econometrics test. If you can ace Econometrics, you can pass any Economics course.

Difficulty: Easy

Time Required: As Little Time As Possible

Here's How:..

How To Write Different Types of Economics Exams

It's almost the end of the term - you're probably looking forward to going home, relaxing and having some fun. But first you have to write your exams! Hopefully you've studied (if not check out this article on how to cram). But even if you know everything from the course you still need to know how to write the exam. I've outlined how to write the three most common exams types: ..

How To Study For Your Economics Exam

Exams are coming, or they might already be here for some of you! Either way it's time to study but don't panic. Economics guest writing Hannah Rasmussen has outlined some study tips for your exam, whether your exams are three weeks away or tomorrow. In section 1 we look at how to study for an exam that is a few weeks away. In section 2 we consider how to cram the night before a test. Good luck! ...

 

 

 

 

 

 

What Is Economics?

Question: What Is Economics?

Answer: There's no one universally accepted answer to the question "What is economics?" Browsing the web, we will find various answers to the question: ...

 

 

 

 

 

The Tragedy of Unemployment

THE world faces an unemployment crisis. Across the globe, an estimated 210 million people are unemployed, an increase of more than 30 million since 2007. Three-fourths of this increase has occurred in the advanced economies. The problem is particularly severe in the United States—the epicenter of the Great Recession and ...

How Much Does Public Policy Contribute to Long-Term Unemployment?

We've spent the last seventy years increasing the hidden overhead and downside risks associated with hiring a worker -- which meant the minimum revenue-per-employee threshold below which hiring doesn't make sense has crept up and up and up, gradually. This effect was partly masked by credit and asset bubbles, but those have now popped. Increasingly it's not just the classic hard-core unemployables (alcoholics, criminal deviants, crazies) that can't pull enough weight to justify a paycheck; it's the marginal ones, the mediocre, and the mildly dysfunctional....

Can You Impose an Externality on Yourself?

My issue is that he keeps saying 'sin taxes' are not Pigovian. I've disagreed on this point, and I disagree continually. A basic definition of a Pigovian tax is: a tax levied on a particular behavior in the market that is generating negative externalities. The idea is the tax re-aligns the real social cost with the benefits of the activity. ..