Microeconomics: Profit Maximizing Output

Looking for introductory information about profit maximizing output for producers (firms)? Look no further than DiscussEconomics’ microeconomics article section for the latest information on the economy. Let’s begin by asking: How do we know if we have...

How Worried Are Canadians About a Housing Bubble?

Current worldwide Google searches pit 6 Canadian cities at the top for the ‘housing bubble’ keyword. After the federal government implemented new changes to mortgage rules for Canadian home buyers, opting for 25 year maximum mortgage terms down 5 years,...

Profit Maximization: Marginal and Average Revenue

Here are some intro explanations and examples of microeconomic principles behind profit maximization, marginal, and average revenue. In our examples we will make some assumption in perfect competition scenario. Assumptions of perfect competition: Homogeneous product...

What is Money? The Functions of Bills and Change

Money. Can’t live without it. Can’t buy everything with it, but if you’re living in any developed economy chances are you have it. You want more of it, wish it could buy happiness, and sometimes despise it, (or at least those who want yours). But...

Why Bonds Trade at par, Discount, or Premium

Here is a quick reference chart to help you determine market price and coupon rate of bond trades. – When a bond trades at par value: – Market Price = face value – Coupon Rate = market interest rate – When a bond trades at a discount: –...

The Pros of Import Quotas In Comparison to Tariffs

Originally posted in May 2009. This is a response to an article from about.com about the cons of import quotas, we decided to suggest a few pros and expand on some more cons. Now don’t get me wrong, the article brings up 3 smart points, but let’s not all...

GDP Growth Slows in US and Canada

*Note: Data compiled from RAND California unless otherwise indicated. Compiled with help from San Diego Bankruptcy Lawyers* The US Department of Commerce released  Quarter 1 2012 GDP data and the American economy saw an expansion of 2.2%. Expectations pegged growth...

Canadian Market Volatility Explained

Not long ago a bank teller and I got into a conversation about hair. She asked me: What can I do to have nice hair? Mine is falling out and it’s thin. I told her make sure to eat enough protein and vitamins, giving her examples of some foods she could eat. Then she...

Top Mythical Ways to Save Money on Gas – Pragamatic Tips

We’ve all read the top 10 lists on how we can conserve our gasoline and drive a few extra stops before our tank runs empty. These stories are particularly popular given the consistent rising price at the pumps. But here’s a question: how many of these...