This article introduces the market for loanable funds and shows how the forces in that market determine real interest rates.
This article outlines the logistical differences in the implementation of monetary versus fiscal policy.
This article introduces the concept of asymmetric information, explains why it is problematic in markets, and describes two ways that asymmetric information manifests itself in markets.
This article defines the principal-agent problem and explains why it leads to economic inefficiency.
This article provides some definitions related to the balance of trade in an economy and describes how the trade balance is related to other economic quantities.
This article introduces the concept of bundling and shows how bundling can be advantageous both for producers and consumers.
This article introduces the government budget at a high level and defines the concepts of deficit, debt, and surplus.
This article explains the difference between "saving" and "investment" and explains when the two concepts do and do not reach parity.
This article outlines the editing heuristics outlined by Kahneman and Tversky in their description of prospect theory.
This article explains what the endowment effect is and why it arises in individual decision making.