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In Economics, we tend to think of "best" as synonymous with "most efficient." There are many different types of efficiency, but the most important of them are allocative and product...

Definition mark: Economic growth is the increase in real GDP 

Explanation: 

Government can use two ways of increasing economic growth; supply side policies and fiscal polici...

A negative externality is defined as the cost suffered by a third party (not involved in the transaction) as a result of the transaction. The consumer and producer are the two main parties in the trans...

Monopolistic markets do not meet the criteria for the most important kind of social efficiency - allocative efficiency. If the market is allocatively efficient, firms will be producing at a point where...