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Important issues in 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.
  1. Arbitrage
  2. Carbon Taxes and Gas Taxes
  3. Elasticity
  4. Government Policy
  5. Natural Disasters
  1. Prohibition
  2. Purchasing Power Parity
  3. Oil Supply
  4. Opportunity Costs
  5. Taxation


An examination of arbtirage - What is arbitrage? Where does arbitrage take place? Can you make arbitrage profits on sports gambling markets?

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.


Elasticity is a measure of responsiveness. In economics, elasticity is used to measure relationships, such as how much quantity consumed increases when prices fall.

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.

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.


All policies have costs and benefits. Here we examine the economic costs and the economic benefits of prohibition - specifically the prohibition of 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.

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?

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.


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?

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