Category: Terms and Concepts

Inequality

“At first countries’ incomes were all bunched together, but with the Industrial Revolution the differences exploded, and the countries have “flown” further apart from each other. . . . [it] pushed some countries forward onto the path to higher incomes while others stayed at the point where they had been for millennia. ....

Indifference curve

The universe seems neither benign nor hostile, merely indifferent. Carl Sagan   Suppose that there are only two types of goods which you, as a customer, buy and use. What amount would you prefer to buy from each one of these two goods? Why? Yeah, for sure, there are far...

The Cobra Effect: Unintended consequences

    But Mouse, you are not alone, In proving foresight may be vain: The best laid schemes of mice and men Go often askew, And leave us nothing but grief and pain, For promised joy! – Robert Burns, 1785 In the 19th century, during the British colonial rule in...

Hollis Johnson

The Big Mac Index: A delicious indicator

The Big Mac Index was written by Pam Woodall in The Economist in 1986. The index, also known as Burgernomics, is published every spring by The Economist. According to the magazine, it serves as a lighthearted guide to whether currencies are at their correct level while seeking to make exchange-rate...