Economics Archives

Price Control in Economics: The Pros and Cons

Why do governments enact price controls? How do they determine what the appropriate prices are? And what happens when a good or service is priced either too low or too high? In economics, price controls are regulations set by governments to ensure goods and services are appropriately priced. When the pricing is mis-optimized, it causes misallocation of resources. The real losses come from the misallocation of scarce resources and a reduction in the total wealth of society. In this article, you’ll learn when the government intervenes in the pricing of goods and services and the implications of these interventions.

Investing by Age: Best Advice For Each Stage of Life

Are you looking for a guide to investing by age? How should your investing strategy change as you age? Age may just be a number, but it’s vitally important when deciding how to allocate your investments. For example, someone in their twenties will have completely different priorities and considerations than someone who is retired. As such, it’s important to consider investing by age recommendations. Keep reading for our complete guide to investing by age.

The Best Advice for Investors: 12 Powerful Rules

What is the best advice for investors? What are Burton Malkiel’s 12 rules for successful investments? From maximizing your savings to avoiding unnecessary taxes and diversifying your portfolio, Burton Malkiel offers the best advice for investors in his book A Random Walk Down Wall Street. Knowing his helpful rules will help you make the most out of your investments. Find the best advice for investors below.

Main Causes of the Wall Street Crash of 1929

What are the causes of the wall street crash of 1929? How did irrational optimism lead to an economic bubble that was bound to burst? The Wall Street Cash of 1929 is one of the most notorious speculative bubbles in history. Causes of the Wall Street Crash range from irrational optimism to the unsavory practices of traders. Understanding the main causes of the wall street crash will help you better understand how economic bubbles form (and why they inevitably burst). Find out the cause of the Wall Street Crash below.

The Government and the Economy: Economics Basics

Systemic Inequality and Racial Segregation in Housing

What role does government play in an economy? How would free-market economies function if left to their own devices? The government provides a number of functions that are highly relevant to the economy’s function. Specifically, governments enforce rules on market transactions to ensure a fair and efficient economy. In this article, you’ll learn how the government and the economy work in tandem and several ways the government facilitates a functioning market economy.

Economic Bubbles in History: Tulip Mania to Bitcoin

Are you looking for the best examples of economic bubbles in history? What can you learn from these examples? From tulipmania in 17th Century Holland to the recent speculation around bitcoin, economic bubbles can be seen throughout history. Caused by public speculation and irrational optimism, economic bubbles are an inevitable consequence of the stock market. Keep reading for a complete list of economic bubbles in history.

The Random Walk Hypothesis: Is the Market Random?

What is the random walk hypothesis? How does it prove that the future of stocks doesn’t depend on its past, but instead resemble a “random walk”? Many investment theories rest on the assumption that the past movements of stocks give an indication of future trends. However, Burton Malkiel’s random walk hypothesis debunks this idea, claiming that the rise and fall of the stock market resembles a “random walk” rather than any noticeable trends. Keep reading for more about the random walk hypothesis.

Types of Financial Advisors: 4 You Should Know

What are the different types of financial advisors? Which types are more effective? According to economist Burton Malkiel, there are four main types of financial advisors: investment advisors, standard advisors, automated advisors, and hybrid services. Understanding the different types of financial advisors and what services they offer can help you make the right choice. Learn about the different types of financial advisors below.

Retirement Investment Strategy: Planning Your Future

What is the best retirement investment strategy? What advice will help you plan effectively for the future? If you want to have a comfortable retirement, it’s important to have a financial retirement plan. Knowing the different options available, including lifecycle funds and annuity will help you build an effective retirement investment strategy. Keep reading for the best retirement investment strategy.

Understanding the Economics of the Labor Market

How is the price of labor determined in an economy? How do economies regulate labor compensation and working conditions? Human labor is a resource like any other. However, unlike in other resource markets (where goods and services are priced efficiently without the need for central control), there are artificial changes to labor prices in the form of artificial floors (e.g. minimum wage laws, mandatory benefits, job security, working conditions, collective bargaining, etc). As a result, the price of labor is above what it’d in free competition. This causes a surplus of supply and less demand for labor. In this article,