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

Macroeconomics | 0 comments

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

Investments, Macroeconomics | 0 comments

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

Energy | 0 comments

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

General | 0 comments

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

Microeconomics | 1 comment

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

Microeconomics | 0 comments

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...

Dilution and Earnings Per Share: Financial Terms and Explanations

Finance | 0 comments

Continuing a discussion on the introductory article on financial terms and explanations, this article discussion common share dilution. Firstly, some background for EPS, let’s use a firm’s Net Income (NI), in this case on a per-share basis. The formula to...

Corner Solution – Perfect Substitutes: Demand Theory

Microeconomics | 0 comments

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...

Personal Budget Basics for Beginners

Personal Finances | 0 comments

DON’T say the B-word. What caused this stigma I have no idea, but one thing is for certain, people who don’t know how to handle their money in the most basic ways know one thing for sure, don’t tell me to ‘budget’. The fact of the matter is...

Treasury Bills (T-Bills) and Interest Rates Summary

Banking | 0 comments

Here is some brief notes on the function and descriptions of these financial instruments. Treasury Bills (T-Bills) Government of Canada issues T-Bills in certain lengths: 98,182, 364 days – issued in denominations of $1000.00 – bought at a discount –...