An externality is a cost or benefit that affects a third party who did not choose to incur that cost or benefit. Externalities can be both positive or negative. A positive externality is anything that causes an indirect benefit to individuals. A GSM operator that uses the new technology to make phone calls cheaper and the vaccination of people against infectious diseases are examples of a positive externality. A negative externality is anything that causes an indirect cost to individuals. A factory's wastes that destroy plantations and some fishermen catch fish with purse seine in shallow wate ..read more

Devletin gerçek zenginliğinin kaynağının değerli madenler olduğunu savunan Merkantilist iktisadi düşünce kabaca 1450-1750 yılları arasında uygulama alanı bulmuştur. Merkantilizm,  ülkeye değerli maden girişini ve ülkeye giren madenlerin de yeniden çıkmaması için ihracatı teşvik edici, ithalatı sınırlayıcı korumacı politikalar öngörmüştür.    Merkantilist İktisadı Düşünce'yi hazırlayan şartlar arasında feodalizmin çözülmesi ve merkezi devletlerin kurulması, yeni buluşların deniz aşırı ticarete katkıları, dinde reform hareketeri, matbaanın bulunuşu ve yaygınlaşması, ekonomik ve so ..read more

Dışsallık, bir ekonomik faaliyet ve işlem nedeniyle o işlemin tarafı olmayan üçüncü şahıslar üzerine düşen maliyet ya da faydaları ifade eder. Bir ekonomik birimin üretim veya tüketim faaliyetlerinden elde ettiği özel faydanın yanında, diğer ekonomik birimlere fayda sağlıyorsa "dışsal fayda" veya pozitif dışsallık; zarar veya maliyet yüklüyorsa "dışsal maliyet" veya "negatif dışsallık söz konusudur. Bir fabrikanın atıklarının tarlaları tahrip etmesi, bazı balıkçıların karlarını azamileştirmek  arzusuyla sığ sularda gırgırla balık avlaması negatif dışsallıklara örnek iken; bir GSM operatör ..read more

We see a dramatic decrease in consumption and production, but at the same time, we can observe that the big businesses cry for the government to rescue them? Where is the invisible hand that magically coordinates the market in such an efficient way that we will always reach the most efficient, wealth maximizing outcome? Although all those hardworking CEOs beg the government to help them in bad times (once again), in good times they argue that a free market is the best solution while taxes, regulations and government intervention just undermines the optimal outcome. Everyone arguing for a mar ..read more

Industrialization, revolution in agriculture, deep-rooted economic and social transformations such as immigration from the countryside to cities, and rapid urbanization took place in Western Europe in the 19th century. In the same period, there was a significant demographic change. Throughout the 19. century, deaths in the West, especially infant deaths, declined. Despite this change in fatalities, the fertility rate did not decrease immediately. Prolonged life expectancy and not falling of fertilities immediately caused the rise of the population rapidly. 1801 1850 Rate of Increase Fra ..read more

In economics, an externality is the cost or benefit that affects a third party who did not choose to incur that cost or benefit. Externalities might be both positive or negative. Positive externalities are benefits that are infeasible to charge to gain; negative externalities are costs that are infeasible to charge to avoid. In other words, in both negative and positive externalities, consumers don't pay and producers are not paid for costs or benefits. Planting tree is an example of positive externality while air pollution is an example of negative externality. Externalities s ..read more

Despite being developed in the second half of the 18th century, lasting from 1760 to 1770 in a short term, it inspired Karl Marx and Liberal Economics thinkers. The term of physiocracy means "rule of nature". According to Physocrats the natural law is perfect and ideal order governed by God. They suggested the functioning of society occurs in a "natural law" as it is happened in physical events in nature. This argument of Physocrats is asserted “Laissez Faire Laissez Passer” statement by Vincent de Gournay who is the pioneer of Physiocracy. This slogan which is attributed to Liberal Thin ..read more