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Consumer Surplus is the difference between the price that consumers are willing to pay, and the price that they actually pay. Similarly, Producer Surplus is the difference between the price for which prod...

Commodities are a raw material or primary good, and they are often fungible. There are three main types of macroeconomic policy. Fiscal policies use taxation and government spending to affect AD, monetary...

A budget deficit arises when government spending in terms of transfer payments,capital expenditure and and current expenditure exceeds government revenue mainly from taxes. This is, when government spendi...

William J Baumol’s theory of contestable markets (1982) holds that there are markets served by a small number of firms, which are nevertheless characterized by competitive equilibria, and therefore, desir...

First of you must define the terms listed in the question throughly. The Economic Problem, in its most simple form, is that there are unlimited wants and limited resources/factors of production. The Econo...