Earn your certification as a Financial Modeling & Valuation Analyst (FMVA)®. Register today!

Economics Articles

Learn the most important economics principles and concepts.

Economic Guides and Resources

CFI has generated a wide range of guides on important economic principles and concepts. These resources will serve as a self-study program so you can learn at your own pace, and based on what you think is important and relevant. Key concepts you will discover include the business cycle, GDP formula, consumer surplus, economies of scale, economic value added, supply and demand, equilibrium, and more.

 

economics guides

 

Concepts for Financial Analysts

The guides and resources you will find below are designed to cater to financial analysts and the most important concepts they need to know. When building a financial model or performing analysis it’s critical to have a firm grasp of economic concepts and how they influence financial results for a business.

 

Browse All Guides…

Balance of Payments

What is Balance of Payments? The Balance of Payments is a statement that contains the transactions made by residents of a particular country with the rest of the world for a specific time period. It is also known as the balance of international payments and if often abbreviated as BOP.  It summarizes all payments and receipts...

Economic Value Added (EVA)

What is Economic Value Added? Economic Value Added (EVA) or Economic Profit is a measure based on the Residual Income technique that serves as an indicator of the profitability of projects undertaken. Its underlying premise consists of the idea that real profitability occurs when additional wealth is created for shareholders and that projects should create...

Barriers to Entry

What are Barriers to Entry? Barriers to entry are the obstacles or hindrances that make it difficult to enter a given market. These may include technology challenges, government regulation and patents, start-up costs, or education and licensing requirements.     American economist Joe S. Bain gave the definition of barriers to entry as “an advantage of...

Gross National Product

What is Gross National Product (GNP)? Gross National Product (GNP) is a measure of the value of all goods and services produced by a country’s residents and businesses. It estimates the value of the final products and services manufactured by a country’s residents, regardless of the production location. GNP is calculated by adding the personal...

All Economics Articles A-Z