Economic Newsletter

Economics and the Environment

How are economics and the environment related? The quick answer is that environmental quality is a worthy goal, but there is an economic trade-off -- a clean environment does not come without costs. The September 2014 Page One Economics article, "Economics and the Environment", provides...

View NewsletterView Classroom Edition

The Economics of Immigration: A Story of Substitutes and Complements

America is a nation of immigrants, who currently make up about 13 percent of the overall population. The May 2014 issue of the Page One Economics Newsletter shows how immigration affects the average American. The essay weighs the costs and benefits of immigration and discusses the concept of...

View NewsletterView Classroom Edition

Would Increasing the Minimum Wage Reduce Poverty?

The nonpartisan Congressional Budget Office tackles that question in a new report and highlights the trade-off presented by increasing the minimum wage. This issue of the newsletter explains the debate and discusses whether other approaches may be more effective in helping alleviate poverty.

View NewsletterView Classroom Edition

The Rising Cost of College: Tuition, Financial Aid, and Price Discrimination

The cost of a college education seems to be skyrocketing—but is it really? Learn about the concept of price discrimination and how it affects college costs.


View NewsletterView Classroom Edition

The Global Economy: It's a Small World After All

To understand why people trade, suppose you were limited to consuming only items you could find within walking distance of your house. Or, perhaps even worse, only items you could produce yourself. For most of us, this restriction would severely diminish the variety of goods and services we enjoy...

View NewsletterView Classroom Edition

Why Scarce Resources Are Sometimes Unemployed

The unemployment rate always seems to be in the news, but did you know there are different kinds of unemployment? There is the natural rate of unemployment; cyclical, frictional, and structural unemployment; plus underemployment. Read the October 2013  Page One Economics Newsletter, “Why...

View NewsletterView Classroom Edition

What Are the "Ingredients" for Economic Growth?

Is there a recipe for economic growth? Perhaps some Miracle-Gro for the economy? If only it were that easy. While the exact recipe is a mystery, economists have identified some of the key ingredients. This month’s newsletter discusses the role that economic institutions play in fostering...

View NewsletterView Classroom Edition

Making Sense of the Ups and Downs of Prices

"Back in my day, a gallon of gas cost a quarter!" Has your grandfather ever said something like this to make a point about how expensive things are now?  The price of gasoline indeed used to be much lower. In fact, the price of gasoline has risen from a little over $1 per gallon in...

View NewsletterView Classroom Edition

GDP: Does It Measure Up?

How is the total value of all the goods and services produced in a country’s economy measured? Gross domestic product (GDP) is one common and fairly comprehensive measure. This month’s newsletter explains GDP components and how it is calculated. It also describes what GDP does—and...

View NewsletterView Classroom Edition

Glossary

Definition of the Week

Internalizing The Externality:

Altering the incentives so that individuals and firms incorporate the costs and benefits that have been shifted to third parties into their decisionmaking.
 

View Glossary >>

Related Reading

Aug 29, 2014
By John A. Weinberg
Federal Reserve Bank of Richmond,Region Focus,Second/Third Quarter, 2012. 
Why should a poorer population sacrifice some prosperity to aid wealthier populations?

Aug 29, 2014

By Scott Wolla 
Federal Reserve Bank of St. Louis, The Economic Lowdown Video Series, Episode 5. 

In this episode Scott Wolla, economic education specialist, explains externalities. Viewers will learn how costs and benefits sometimes affect bystanders and discover how taxes and subsidies can be used to “internalize” externalities.

 

More Related Reading >>

Please enter your information
* indicates required field

Top Economic Indicators


Featured Data Series

The labor force participation rate for native-born workers in March 2014 is 63.2%, while the labor force participation rate for foreign born is 66.1%.

Data Practice Using FRED

FRED Graphing Tutorials

Contact

Send questions or comments regarding the Page One Economics website to PageOneEconomics@stls.frb.org


Recently Viewed Series


Subscribe to our newsletter for updates on published research, data news, and latest econ information.
Name:   Email:  
Twitter logo Google Plus logo Facebook logo YouTube logo LinkedIn logo