Opportunity cost is an important element in maximising social benefit. Suppose there are two agents deciding whether or not to commit to a transaction, each agent will want to maximise their potential benefit given their constraints. For example, a consumer may want to maximise their utility whilst the producer wants to maximise their profit. An … Read more

There are many different measures of economic growth. As mentioned above Gross Domestic Product (GDP) is perhaps one of the most popular measures as it allows us to compare growth in domestic production with other countries. However, economic growth, in terms of the growth of output (domestic income), is not always a good indicator of … Read more