According to Keynes, cyclical unemployment is caused by too little aggregate demand. It arises when there is a decrease in the demand for goods and services in an economy. If this type of unemployment is eliminated in the economy, then we consider the economy to be at full employment. In other words, the absence of … Read more

Market share is a type of market prospect ratio that shows the number of sales in an industry that a company generates compared to the total sales generated in that industry. We will look at the market share formula, examples, and the different types of market shares with their analysis. … Read more

Externalities definition in economics Externalities in economics are the indirect cost or benefit that a producer cause to a third party that is not financially incurred or received by the producer. In other words, the term “externalities” refers to a cost or benefit that an unrelated third party experiences from … Read more

Monopolists can achieve any level of profit they desire because they have unlimited market power. In monopolistic competition, firms can have some market power. The only firms that do not have market power are firms under perfect competition. This is because both buyers and sellers in the market are price … Read more

Public works program definition Public works programs (PWP) are government activities that are created in order to help the poor in exchange for their labor or services. The government can pay cash, and give food or vouchers in exchange for services or labor that are often intensive. Public works programs are … Read more

Fiscal policies are measures carried out by the government to stabilize the economy by altering the level of its spending or by altering the types and levels of taxes. These policies can influence the economy by increasing the money available to the citizens or reducing the money available to them … Read more