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REGULATION, CAPTURE THEORY: Control of a regulatory agency by those entities, usually the businesses of a particular industry, that the agency is designed to regulate. Those industries subject to economic regulation that is intended to protect the public interest (consumers) invariably find it beneficial to exert influence over the regulatory agency. One common way of doing this is to have former or future employees in the industry "temporarily" work for the regulatory agency.

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Menu of Lessons
A. Introduction
  • Economic Basics
  • Economic Science
  • Scarcity
  • Production Possibilities

  • B. The Market
  • Demand
  • Supply
  • Market
  • Market Shocks

  • C. The Macroeconomy
  • Macro Basics
  • Gross Domestic Product
  • Circular Flow
  • Business Cycle

  • D. The Aggregate Market
  • Aggregate Demand
  • Aggregate Supply
  • Equilibrium
  • Aggregate Shocks

  • E. Money and Banking
  • Money
  • Banking
  • Money Creation
  • Federal Reserve System

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    Macroeconomics

    Introductory Macroeconomics is the study of the aggregate economy, including the topics of inflation, unemployment, business cycles, gross domestic product, money, fiscal policy, and monetary policy.

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    DISEQUILIBRIUM PRICE

    A price that does not achieve equilibrium in the market. A disequilibrium price is either above or below the equilibrium price. A price below the equilibrium price creates a shortage and a price above the equilibrium price creates a surplus. In both case, the market imbalance prompts the price to change, moving toward the equilibrium price.

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    Today, you are likely to spend a great deal of time driving to a factory outlet looking to buy either decorative celebrity figurines or a flower arrangement with anything but tulips for your grandfather. Be on the lookout for malfunctioning pocket calculators.
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    North Carolina supplied all the domestic gold coined for currency by the U.S. Mint in Philadelphia until 1828.
    "You are never given a dream without also being given the power to make it true."

    -- Richard Bach, Author

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