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…
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…
Table of Content 1. How does ITQs Help Reduce Overfishing? 2. How to Allocate Quotas? 3. Challenges with ITQs 3.1 What is Bycatch? 3.2 What is High Grading? 4. How to Solve the Challenges of ITQ We've discussed how common resources te…
A common resource is a resource that has two characteristics. Non-excludable Rivalrous I want to give you an example to explain what those terms mean. So let's take the ocean it's very difficult to exclude people from being able to use the …
We've been discussing how public goods can lead to a market failure because of the free-rider problem which basically says that why would people want to pay for a public good if they believe it's going to be provided anyways and there's…
A public good is any type of good that is both nonrivalrous and non-excludable . What nonrivalrous means is that the marginal cost of providing this good to one extra person would be zero. Let's take national defense as an example. Let'…
Previously we've been talking about how negative externalities can create a problem because we've got one person imposing costs on another person but not reimbursing him or her for the harm that's being done. In a pigouvian tax and cap…
