Відео

Published on 29 Mar 2012 GDP is generally understood to represent the health of a nation's economy, and most people realize that if GDP is growing, things are going well, while if it's falling things have turned sour in the economy. But what, precisely, does GDP measures? There are two primary methods for measuring GDP, which should yield the same result even though they measure completely diff...

Uploaded on 17 Jan 2012 Macroeconomics policymakers have two general tools in their kit to manage the level of aggregate demand in an economy. The first is fiscal policy, which involves government changing the levels of taxes and government spending to manage demand. Central banks engage in the second type of demand-management, known as monetary policy. By changing the supply of money available...

Uploaded on 18 Nov 2011 This video lesson introduces the concept of market failure and examines one type of market failure, a negative externality of production. If the producers of a good face lower costs than society as a whole, too much of the good will be produced and the market fails to achieve efficiency. In such a case, government may be needed to intervene and promote a more socially op...

Uploaded on 29 Feb 2012 Exchange rates are the "prices" of one country's currency expressed in terms of another country's currency.Exchange rates are determined through the market forces of supply and demand, just like prices for any good, service, or resource. This lesson will explore the different determinants of exchange rates, focusing on the markets for Swiss francs in Europe and the marke...

Published on 20 Mar 2012 Two men are in custody for a crime they may or may not have committed: armed robbery. The police have the men in separate cells and have told them the following: Confess to the crime of armed robbery and we will let you off with a light term of three years in jail with parole after one year. Remain silent and we will throw everything we have at you, you will get 10 year...

Published on Sep 16, 2015 The additional benefits enjoyed by consumers pay less than they are willing to pay and by producers who sell for a price higher than they are willing to sell for are known as consumer and producer surplus. Together they make up the "total welfare" of a market. This lesson introduces and explains these concepts, important for understanding what makes the market system e...

Published on 1 Mar 2012 After studying the theories of perfect competition, we not transition into the opposite extreme in the spectrum of competition between firms. 'Mono' means 'one' and 'poly' means 'seller'. A monopolistic market, therefore, is one in which only a single seller produces the output for the entire market. Examples of pure monopolies are rare, but they do exist; some examples ...

Uploaded on 31 Oct 2011 This lesson introduces the macroeconomic concept of Aggregate demand. AD is defined, and its components are explained individually, focusing on the factors that can lead to a change in the overall demand for a nation's goods and services in a particular period of time at a range of price levels.

Published on 15 Aug 2012 In a previous lesson we introduced the basic economic concepts of scarcity, opportunity cost, and the production possibilities curve (PPC). In that lesson, we examined the tradeoffs an individual faces in the use of her time between "work" and "play". We showed that the opportunity cost of one hour of work is always the one hour of play that the individual could have en...

Published on 13 Aug 2012 By this point in your course you may have learned the definition of a market: A place where buyers and sellers meet to engage in mutually beneficial exchanges. But what is a market economy? Two basic types of markets exist in any market economy: resource markets and product markets. The exchanges that take place in these markets benefit both the households and the firms...

Published on 13 Aug 2012 The basic economic problem is one rooted in both the natural world and in human greed. We live in a world of limited resources, but we seem to have unlimited wants. This results in scarcity, which gives rise to the very field of Economics, which deals with how to allocate scarce resources between the competing wants and needs of society. This lesson will introduce these...

Published on 9 Oct 2015 While Economists generally agree that free trade creates more winners than loser, policymakers don't always agree, and turn to protectionism to shelter domestic producers from foreign competition. A tariff is one form of protectionism employed around the world by governments to shelter domestic firms from cheap imports. This lesson examines the impact tariffs have on the...