Important issues in Economics
By Mike Moffatt, About.com Guide to Economics
Economists are interested in a great number of issues. Some include, but are not limited to arbitrage, government spending, carbon taxes, oil supply and monetary policy.
Arbitrage
An examination of arbtirage - What is arbitrage? Where does arbitrage take place? Can you make arbitrage profits on sports gambling markets?
- What is Arbitrage?
- Can Sports Arbitrage Software Make You Easy Money?
- Arbitrage in the Sports Gambling Market
Carbon Taxes and Gas Taxes
One of the proposed means of reducing greenhouse gas emissions is to raise taxes on fossil fuels and other forms of carbon emissions. Learn more about the proposals here.
- Gas Tax and Carbon Tax FAQ
- Will Changing The Way Gas is Taxed Have an Impact at the Pump?
- Pigovian Taxes - Joining the Pigou Club
- Kyoto - Symbolism vs. Envrionmental and Economic Policy
- What is the Optimal Carbon Tax Rate?
- What's the Price Elasticity of Demand for Gasoline? (Hint: It isn't zero)
- The Gas Tax - Answering NoPigou's Questions
- Can Gas Tax Increases Be Deficit Reducing?
- Will Higher Taxes on Gasoline Lead to Higher Government Spending?
- A Non-Pigovian Argument for Higher Carbon Taxes
- If Banning Incandescent Light Bulbs Saves Money, Is It Good Public Policy? No.
- Is Canada Abandoning the Kyoto Accord?
- Payroll Tax Reduction - One Approach to a Carbon Tax
- How would a gas tax reduce consumption?
- How can we be sure the government would use the additional revenue to offset oth
- How would a gas tax reduce road congestion?
- How do we know that governments will not just spend the additional revenue?
- How long would it take for a gas tax to be effective?
- How is a gas tax better than just improving emissions standards?
- Why should an economist support such a political infeasible thing as a gas tax?
Elasticity
Elasticity is a measure of responsiveness. In economics, elasticity is used to measure relationships, such as how much quantity consumed increases when prices fall.
- A Beginner's Guide to Elasticity
- Arc Elasticity
- Using Calculus To Calculate Price Elasticity of Demand
- Using Calculus to Calculate Elasticities
- Using Calculus To Calculate Income Elasticity of Demand
- Using Calculus To Calculate Cross-Price Elasticity of Demand
- Income Elasticity of Demand
- Price Elasticity of Supply
- Price Elasticity of Demand
- Cross-Price Elasticity of Demand
- Elasticity Practice Question
- What's the Price Elasticity of Demand for Gasoline? (Hint: It isn't zero)
- Using Calculus To Calculate Price Elasticity of Supply
Government Policy
Government policies can have all kinds of impacts on the economy. Here we examine all types of government policies - the good, the bad and the ugly.
- The Logic of Collective Action
- Should ATM Fees Be Regulated By the Government?
- If Banning Incandescent Light Bulbs Saves Money, Is It Good Public Policy? No.
- A More Economically Efficient Kind of Gun Control?
Natural Disasters
Natural disasters impact the economy - some argue that they impact they can actually improve the economy. We examine whether or not this is possible.
- Hurricane Katrina and the Economy
- Will Hurricane Katrina increase GDP?
- The Economic Cost of a Flu Pandemic
Prohibition
All policies have costs and benefits. Here we examine the economic costs and the economic benefits of prohibition - specifically the prohibition of marijuana.
- Should Governments Legalize and Tax Marijuana?
- Time to Legalize Marijuana? - 500+ Economists Endorse Marijuana Legalization
- Would Marijuana Legalization Increase the Demand for Marijuana?
Purchasing Power Parity
Purchasing-power parity theory is a theory which states that the exchange rate between one currency and another is in equilibrium when their domestic purchasing powers at that rate of exchange are equivalent. Here we examine that theory.
- A Beginner's Guide to Purchasing Power Parity Theory (PPP Theory)
- Purchasing Power Parity: Link Between Exchange Rates and Inflation
- What is the difference between relative PPP and absolute PPP?
Oil Supply
The oil supply is arguably one of the biggest topics in economics. What impact does rising oil prices have on the economy? Will oil run out? What will happen to the economy if we cannot find alternatives to fossil fuels? What impact will a carbon tax have on fuel consumption... and on the economy?
- We Will Never Run Out of Oil
- Can We Expect $100 Barrels of Oil in 2006? - Oil Futures Say No
- Why are Oil Futures so Undervalued?
- Possible Reasons Why Oil Futures are so Undervalued
- What's the Price Elasticity of Demand for Gasoline? (Hint: It isn't zero)
- Why Do Oil Prices and the Canadian Dollar Move Together?
- Peak Oil and the Oil Supply - How Likely is Oil to Hit $100 a Barrel in Dec 2007
- The Intellectual Bankruptcy of the Peak Oil Movement
Opportunity Costs
The opportunity cost of any action is simply the next best alternative to that action - or put more simply, "What you would have done if you didn't make the choice that you did". It is one of the most fundamental ideas in economics.
Taxation
What impact does high taxes have on the economy? What are the economic benefits of lowering taxes? Do some taxes harm the economy more than others?
