by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Lump of Labor Fallacy?The lump of labor fallacy is a belief that the amount of labor available in an overall economy can be distributed to create fewer or more job openings. It holds that there is a fixed amount of labor required in the entire economy....
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is the Production Possibility Frontier?The Production Possibility Frontier refers to a curve that presents the possible amounts at which two distinct products can be manufactured when the resources and technology that both goods require for their production are...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Mechanism Design Theory?Mechanism design theory refers to an approach in economics that tries to study how particular results or outcomes are achieved. Economists use this theory to compare, analyze, and regulate some instruments associated with a specific...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Minimum Efficient Scale?Minimum efficient scale refers to the lowest point on the long-run average cost curve where the firm can achieve economies of scale. How to Determine the Minimum Efficient Scale When it comes to classical economies, MES is the lowest...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is a Closed Economy?A closed economy is a type of economy that produces all consumers needs without importing or exporting any goods and services inside or outside the country. This type of economy is self-sufficient and independent. It has no trading activity...
by TheBusinessProfessor | Feb 23, 2025 | Economic Analysis & Monetary Policy
What is Classical Economics?Classical economics is a school of thought in economics that became popular in the 18th and 19th centuries. This school of thought had Spanish scholastics and French physiocrats as contributors.Other contributors include David Ricardo,...
