Economic Concepts

Economic concepts are widely used but not always defined clearly. Read up on the nature of capitalism, learn how much power the Fed really has and more.


When you want sound financial advice, you probably don't think to consult the woman selling $30 tubes of lipstick at the cosmetics counter. But could she have a better handle on the whims of the economy than your CPA does?

In the type of free market Adam Smith, father of capitalism, imagined, markets would correct themselves in the face of recession by weeding out weak businesses and individuals. Why bail out bad failing business, then?

It may not be pretty, but recessions affect us all. So how do they occur? Trace the economy's path in the 21st century from subprime collapse to the mortgage crisis to the credit market crisis.

Imagine a world without cash or credit cards. You'd barter to get what you need and want. Today, people and businesses are still trading goods and services. But can these cash-free transactions be taxed?

E-commerce, or shopping online, offers advantages for both consumers and retailers. See how to make the most of online shopping.

While the history of e-commerce is short, e-commerce has changed how we do business online. Learn more about the history of e-commerce.

Bleak images from the Great Depression strike fear in the hearts of people who believe that a recession in the United States could cause history to repeat itself. But does recession always lead to depression?

Imagine a tightrope walker with ESP and a degree in economics -- that's essentially the Federal Reserve Chairman. By changing the interest rate, the Fed can offset inflation and unemployment. But how?

In a free market economy, the law of supply and demand dominates. But if the economy is in a downward spiral, could the government really save it?

Socialism is more than just agrarian communes: It's a principle, lifestyle and economic system that aims toward cooperative, ideal societies. But does it work?

The essence of capitalism is economic freedom and the belief that widespread personal wealth will lead to societal well-being. But does anyone even practice true capitalism these days?

Interest rates are simply the cost of borrowing money. Without them, lenders would have no reason to let you borrow money.

How can the government just take over and destroy property and buildings? And why do we let them? It's called eminent domain -- and it's in the Constitution. Learn about the controversy surrounding eminent domain.

The Five Day Weekend began as a clever marketing campaign to drive tourism. But some people like the idea and want to make it a law.

Who are the homeless? What are the effects of homelessness on society at large? And what can we all do to help? These are a few questions explored in this article.

America buys goods at a high rate, so it's no wonder the U.S. is considered 'the land of plenty.' Read about the daily U.S. consumption for 12 items, including denim jeans and movie tickets.

Times have changed and so has the price of groceries. Gas was roughly 27 cents a gallon in 1957, so how much less did items cost at the grocery store? Check out this list of grocery store prices for 14 items in 1957, including ground beef, butter, and mil

Mergers and acquisitions: These two words represent how companies buy, sell and recombine businesses. Not all M&As are peaceful, however. Sometimes, a company can take over another one against its will -- a hostile takeover.

Inflations seems to be in the news on a regular basis. Have you ever wondered what inflation is and how inflation affects the value of our money? Find out in this article.

The Fed: It's a very mysterious part of the government. But if you own a house, have a bank account or write checks, the Federal Reserve System affects your life every day.

What goes up must come down: Periodic recessions are a natural part of any nation's economic cycle. Who decides when the economy is in recession, and on what grounds?

I've heard a lot in the news lately about the Strategic Petroleum Reserve. What is the reserve, and how does the United States use the reserve? How much oil is held there, and how can a lot of oil be stored?

How does the Social Security system (in the U.S.) work? When I pay money into the system, where does my money go and where is my account kept (does some bank have the money in my account)?

E-commerce has exploded in the last 10 years. Find out how e-commerce works and how you can harness the potential of e-commerce, from affiliate programs to CPC links.