Vaccines and masks as a public good


A public good has characteristics of non-rivalry and non-excludability. This means that once the good is provided, everybody benefits, and if one person benefits it doesn’t reduce the amount available to others. Public health can be seen as a public good. If you take precautions to remain healthy and not pass on Covid, you benefit …

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Advantages and disadvantages of population growth


Over the course of history, the world has seen rapid population growth. It has enabled a rich diversity of culture, technology and improved living standards. However, population growth is increasingly coming at a cost – in particular to the environment. High population levels are contributing to the depletion of natural resources and causing widespread pollution. …

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Alternatives to GDP


GDP measures gross domestic product. It is a measure of a nations economic output/income/expenditure. GDP is an excellent guide to the total number of marketable goods and services produced and consumed in an economy. It is a useful economic statistic – especially for managing the economic cycle, but has often become a short-hand for economic …

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The relationship between oil prices and inflation


Oil prices have a significant effect on the consumer price index, though the correlation between oil prices and inflation is less direct than it used to be in the 1970s. St Louis Fed estimates a correlation of 0.27 between changes in the oil price and inflation. In other words, a sustained 10% rise in oil …

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Effect of Higher Oil Prices


A look into the effect of higher oil prices on economies, firms and consumers.   Readers Question: With oil prices rising towards $100, what are the economic effects of rising oil prices? In the short term, higher oil prices will lead to higher costs of production, increased inflation, and decreased living standards for consumers of …

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Categories oil

Economic solutions to global warming


Global warming is a major economic and social problem facing the world. One study by Swiss Re, a provider of insurance suggested global warming could cost $23 trillion in lost output by 2050. In addition to the economic costs are perhaps the much more important costs to the environment, natural habitats and the life chances …

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Paradox of Value – Definition, Explanation, Examples


Definition The observation that some goods (e.g. water) which are more essential to human life can be cheaper than non-essential goods (e.g. diamonds) Explanation The paradox of value examines why goods that are not essential to life can command a much higher price than goods that are essential to life. For example, a classic example …

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