Economics Articles

Learn the most important economics principles and concepts.
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consumer surplus formula

Consumer Surplus Formula

Learn how to calculate the consumer surplus formula. When consumers pay less than they are willing to, it creates an economic benefit to them

 the businessc cycle in economics

Business Cycle

The classic business cycle in economics includes expansion, peak, recession, depression, trough, recovery, and then repeats. Learn about each stage…

 economies of scale - economic concept

Economies of Scale

When companies increase their scale the cost of production often decreases, creating an incentive and a benefit for them to increase their size

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.

 

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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 over 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...

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 for new companies to enter a given market. These may include technology challenges, government regulations, patents, start-up costs, or education and licensing requirements.     American economist Joe S. Bain gave the definition of barriers to entry as, “an...

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...

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