Definition of opportunity cost Opportunity cost represents the cost of a foregone alternative. Opportunity cost can be positive or negative. When it’s neg...

Production Possibility Frontier (PPF or PPC) PPF is the curve that shows the best (maximum) combinations of two outputs that an economy can produce given ...

The fundamental purpose of property rights, and their fundamental accomplishment, is that they eliminate destructive competition for control of economic r...

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Positive economics is objective and fact-based where the statements are precise, descriptive, and clearly measurable. Here’s an example of a positive econ...

By creating high-paying jobs and providing the raw materials essential to every sector of our economy, minerals mining helps stimulate economic growth. Th...

Apples are a relatively elastic good. If the price of apples goes up, people buy fewer apples. Are apples elastic? In the real world, price elasticity of ...

Spartan Economy Sparta’s economy relied on farming and conquering other people. Sparta didn’t have enough land to feed its entire population, so Spartans ...

Although plans for a Constitutional Convention were already under way, the uprising in Massachusetts led to further calls for a stronger national governme...

Definition: Price mechanism refers to the system where the forces of demand and supply determine the prices of commodities and the changes therein. It is ...