Why Alberta Oil Savings is Not like Norway but should

Why Alberta Oil Savings is Not like Norway but should

It is entirely plausible the only result from the Alberta savings fund (currently at just under 18 billion) after the oil boon will be a paltry 4.6 billion. That’s $4.6 billion generated from decades of revenues and trillions of royalty dollars. A handful of...

Could we see $20 per barrel price of oil?

The answer is yes, and the ones who will suffer? Well, everyone will, but North American producers, particularly in the shale and bitumen markets, will suffer the most. Why is this happening? Well North American production has increased and nobody else worldwide is...

Infrastructure Spending Is Zero. That’s 0 with a zero

Lawrence Summers, Professor and President Emeritus at Harvard University, has made an assertion that has startled many economists and has gotten the the policy thinkers in a buzz. His models suggest that the total government spending (of all levels) adjusted for...

Consumption Bundle Assumptions

Introductory Macroeconomics Following up from our introduction to economics/macroeconomics article, this post talks about ‘self-interest’ and maximizing over a set of preferences subject to constraints. Let’s start off with some examples, but first,...

The Impact on the Economy: Oil Prices Dip Below $50 a Barrel

It seems like a bygone era when fuel prices were this low. Oil dipped below $50/barrel for the first time in 10 years. Prices at the pump are the lowest in a decade which makes commuters and truckers thrilled, but what about the economy as a whole, and what can we...

Merry Christmas From DiscussEconomics

From everyone here at DiscussEconomics we want to wish you a great Christmas. Hopefully your bills won’t get the better of you this season, but hey, if people didn’t spend we’d have nothing to talk about! If you don’t do the Xmas thing then...

Introduction to Microeconomics Cost Formulas

Let’s carry on from our introduction into microeconomics with a focus now on how firm’s costs vary with output in the short run (6months to 2 years). Let’s Make an Important Assumption: Prices of inputs are assumed given (ie., firms can’t...

Microeconmics: The Monopoly

Let’s start our introduction to monopolies by offering a definition: An industry comprising of only one firm. Examples include utility companies (gas, electric, water), rail, and cable companies. Reasons for monopoly: (1) No close substitutes – If...

Corner Solution – Perfect Substitutes: Demand Theory

Continuing on with demand theory. Previously we discussed the Cobb Douglas function, now we move into perfect substitutes and the corner solution. Here are some factors to keep in mind. 1. Indifference curves must interest one of the axis (not necessity or essential...