Economics

Viewed by economists as tools, not a theory. The concept of supply and demand is a way of viewing the world, allowing economists to understand the market and its prices.…

An individual can save and invest in order to increase his or her income in the future. A small decrease in consumption today can lead to a much greater amount…

The entrepreneur is the driving force of a market economy. This is because he creates products, prices and wages. The competition (other entrepreneurs) ensures that the prices aren't too high…

In direct exchange, people cannot afford to specialize on one task only. They have to do multiple task themselves: get food, water, clothes, build a shelter etc. This gets much…

A direct exchange (or barter) occurs when we exchange consumption or producer goods with someone else.* It can be an apple exchanged for an orange or it can be a…

This is just a short introduction of what we are going to discuss next. In the last lesson, we discussed a one man economy. But what happens in a real…

For some people it can be almost impossible to imagine an economy when there is just one person. This is caused by people thinking economics is only about money. Truth…

Once again we can see that economics is a social science. In economy, we focus on purposeful action. We believe that only individuals can act. Now, why is that -…

One of the most basic and crucial distinctions we all make, often without even realizing it, is the difference between purposeful action and mindless behaviour.If I told you I'd give…

Economics is an independent science. That does not mean we experiment, calculate and deliver results. It means it is another way to view the world. You will not and cannot…