Capital intensive is a term that describes a production process that requires a substantial amount of capital investment in fixed assets, such as buildings, machinery, and equipment. Capital-intensive industries are those that require significant up…
What Is Gross Domestic Product (GDP)? Gross Domestic Product (GDP) is a key metric for measuring a country's overall economic output and growth. It represents the total value of all goods and services produced within a country's borders over…
What are the barriers to exiting a market? Barriers to exit refer to the obstacles or hindrances that make it difficult for firms to leave a market or industry. These barriers can take various forms, including economic, legal, and technological fact…
What is Absolute advantage? Absolute advantage is a concept in international trade that refers to the ability of a country, company, or individual to produce a good or service at a lower cost or in a more efficient way than its competitors. This con…
Some countries use housing vouchers as a way to ensure that all families can have access to affordable housing. For example in the United States, we have a program called section 8, and section 8 provides vouchers to low-income families to make sur…
Fracking is a really good way to understand how supply and demand work in a real market. First of all, fracking stands for hydraulic fracturing and it's basically a way that companies will drill a well into the ground and then they will spray wa…
If you've ever flown on an airplane you might have wondered how safe the airplane was and how regulatory agencies such as the FAA in the United States made decisions about how safe the airplane should be. So basically this is all about trade-of…
Most countries have some type of regulatory agency that's in charge of approving new drugs. So let's say a pharmaceutical company comes up with a drug that's intended to treat cancer. Now this regulatory agency which in the United States…
