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Economics

In this category you will find information on economics, both in terms of macroeconomics and microeconomics. Economics is an important basis for the understanding of financial markets and financial instruments.

Functions of money

Money is a means of payment in an economy. Money performs important functions in the economy for a country. ...

Gini coefficient

The Gini coefficient is a key ratio of income distribution in a country. The Gini coefficient is calculated from the lorentz curve and indicates how unequally incomes are distributed in a country. ...

Government debt

The government is borrowing money which increases the national debt when the public sector has a deficit in the overall budget. ...

Gross domestic income (GDI)

The gross domestic income is equal to the gross domestic product if there are no claims on or liabilities to abroad countries. ...

Gross domestic product (GDP)

The gross domestic product is the total value of all finished products sold in a country during a year. GDP can be calculated from three sides. ...

Hecksher-Ohlin theorem | Trade theory

The Hecksher-Ohlin theorem is a theory that explains why there are comparative advantages. According to the Heckscher-Ohlin theorem, comparative advantages arises because countries is rich in various ...

Income distribution

Income distributon is about how the total income in a country are distributed among households in the economy. The income distribution can be very unfair in a pure market economy. ...

Incomplete information | Market failure

Incomplete information is regarded as one of all the market failures. Incomplete information means that resources might be allocated incorrectly. ...

Inflation

Inflation is defined as an increase in the average prices during a period in time. A high inflation and an unstable monetary value can give adverse effects on a country's economy. ...

Inflation gap

Inflation gap is an important concept in fiscal policy. With an inflation gap means that GDP is higher than it should be at full employment in the economy. ...

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