The Great Recession of 2007
What caused the downfall? The Great Recession of 2007 – 2009 is actually still going on in 2012. I know they say it’s a double-dip recession, but quite frankly, it’s…
Perfect Competition
Pure Competition Perfect competition, also known as pure competition has four basic characteristics: Large number of participants Standardized products Price takers not price makers Easy to enter or exit the…
Market Failure
Can markets fail? When markets don’t function properly, we have what “economists refer to as market failure” (McConnell, Brue, & Flynn, 2012, p. 92). Market failure happens on either the supply…
Free Market Society
What is a free market? In a free market society, such as the one people enjoy in the United States, supply and demand give rise to prices and products available…
Nothing Goes International
Is it time to produce Something? Nothing, Ltd. has grown into a huge corporation, successful beyond our wildest dreams. Going global appears to be the next logical step in our…
Money Created from Nothing
How banks make money from nothing Money is a fascinating subject. Since the dawn of man, people have used money in one form or another, often using a barter system…
The Cost for Nothing
Market Structure for Nothing It may be difficult at first glance to tell what type of market structure our company, Nothing, Ltd. fits into, and so we need to take…
The Market for Nothing
Supply and Demand Basics Now that we have mastered the laws of supply and demand, we are ready to learn about the market. In simple terms, the market is defined…
Something for Nothing
Or How Low Will They Go? Supply and demand are at the very core of a capitalistic economy. Quick-thinking, forward-moving entrepreneurs recognize consumer’s demands, and compete for the right to…