Balance of Trade
We have made the blanket assertion that free trade, in currency if not utility (think overall happiness, we’ll get to […]
International Trade
International Trade
Can Trade Hurt Wages?
The assessment of trade just given indicates that international trade is always a good thing, that it just extends the
International Trade
Comparative Advantage
Consider two countries, we’ll call them Rich and Poor. Rich is fully industrialized and has, on average, twice the productivity
International Trade
International Trade
While most people understand the benefits of trade on a free market within a country, free international trade is not
Productivity
Productivity Summary
To recap, labor productivity refers to the value of output (say dollars’ worth of cars) produced when compared to the
Productivity
Measuring Productivity
Businesses are always striving to minimize the cost of producing a given level of output. When designing a factory, for
Productivity
Productivity in Economics
Productivity in economics refers to the amount of labor and other inputs that are required to produce a good or
Factors of Production
Box: Raising the Minimum Wage, Jobs & Utility
Let’s look at how a rise in the minimum wage affects the economy under ideal market conditions. To review, in
Factors of Production
Substitution of Factors
In economics it is assumed that one can, to an extent, substitute one factor for another. So, when one buys
Factors of Production
Other Factors of Production
Recently some economists have posited “entrepreneurship” as a separate factor of production. The entrepreneur is thought of as orchestrating the