Economics teaching

01/08/2025

30/07/2025

3 major inflation types
There are three major inflation types, each with a specific factor that contributes to the increase in prices. Consider the types of inflation below:
1. Demand-pull inflation
A reduced supply of goods and services may result in demand-pull inflation. The demand-pull inflation type occurs when the demand for goods and services is higher than the supply. The gap between demand and supply can lead to an increase in prices. For example, if a company records a total demand of 100 units for a clothing item and can only supply 60 units, the price for each unit may increase.
Demand-pull inflation may also occur when there's an increase in the amount of money in circulation. People can pay more than the regular price for products when they have enough money.
Related: What Is Market Demand and Why Is It Important? (With Types)
2. Cost-push inflation
When companies spend more than the usual amount to produce goods or render services, it leads to cost-push inflation. The two factors that may cause an increase in the cost of production include increased production materials price and higher wages for labour. For example, if a bakery now purchases a $45 bag of flour that was previously $25, it can lead to an increase in the price of the company's products. The cost-push inflation type can also occur when the supply of goods exceeds the demand for them.
As there's a reduction in the demand for the company's goods, they increase the prices to maximize profits. For example, if the demand for fashion items in a store reduces, the store can increase the price of the products to maximize profit.

3. Built-in inflation
Built-in inflation occurs when team members in a company increase demand for a higher salary for their labour to maintain their cost of living. Companies increase the price of their products to have enough to settle team members' demands.

30/07/2025

30/07/2025

What is inflation?

Inflation is an economic situation that occurs when the prices of goods and services increase. When a company is impacted by inflation, it will need to spend more than the regular price to purchase the same item. For example, if a bakery typically buys flour at the rate of $25 per bag, during a period of inflation it will be forced to spend more than $25 for a bag of flour. Irrespective of the inflation type, purchasing power reduces, so people buy fewer products for the same amount.

29/07/2025

Economics is the study of how people allocate scarce resources for production, distribution, and consumption, both individually and collectively.

29/07/2025

Reasons for public sector failure Management failures: - Lack of leadership, experience and training, might result in the improvement of one person and at the expense of someone else Apathy - Government shows no interest in delivering services to the public - No accountability - Corruption and poor service delivery are signs of apathy Lack of motivation - Frontline workers hardly receive incentives for good service delivery - This leads to limited services, high cost and low quality Bureaucracy - Individuals and enterprises influence government to act in their interest Structural weaknesses - Objectives and goals are not met

29/07/2025

public sector failure. ..guys....for today

29/07/2025

public sector failure, occurs when government intervention in the economy leads to a less efficient allocation of resources and a decrease in overall economic welfare.

29/07/2025

Let talk about public sector failure