Tuesday, February 23, 2010
Thursday, February 4, 2010
Learn These, Or Else!!!!
Ten Key Principles in Economics
Everything has a cost. There is no free lunch. There is always a trade-off.
Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.
One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).
Incentives work. People respond to incentives.
Open for trade. Trade can make all parties better off.
Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers.
Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)
Concentrate on productivity. A country’s standard of living depends on how productive its economy is.
Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.
!! Caution: In the short run, falling prices may lead to unemployment, and rising employment may lead to inflation.
permanent link
Everything has a cost. There is no free lunch. There is always a trade-off.
Cost is what you give up to get something. In particular, opportunity cost is cost of the tradeoff.
One More. Rational people make decisions on the basis of the cost of one more unit (of consumption, of investment, of labor hour, etc.).
Incentives work. People respond to incentives.
Open for trade. Trade can make all parties better off.
Markets Rock! Usually, markets are the best way to allocate scarce resources between producers and consumers.
Intervention in free markets is sometimes needed. (But watch out for the law of unintended effects!)
Concentrate on productivity. A country’s standard of living depends on how productive its economy is.
Sloshing in money leads to higher prices. Inflation is caused by excessive money supply.
!! Caution: In the short run, falling prices may lead to unemployment, and rising employment may lead to inflation.
permanent link
Wednesday, February 3, 2010
Tuesday, February 2, 2010
Friday, January 15, 2010
Thursday, January 14, 2010
Remedy For Our Ailing Economy? Sacrifice
After reading the article linked above, comment on the following statements in the box below.
*Unlike your grandparent's generation, who were born and raised during the Great Depression, your generation is ill-equipped to make the sacrifices necessary to get the nation's finances under control.
*America is an economy in decline, and in the foreseeable future there is nothing on the horizon that will generate the type of economic growth we witnessed in the 1950s and 60s. Therefore, our country should anticipate at least a decade of economic stagnancy.
Click on the comment link below and a box will appear.
*Unlike your grandparent's generation, who were born and raised during the Great Depression, your generation is ill-equipped to make the sacrifices necessary to get the nation's finances under control.
*America is an economy in decline, and in the foreseeable future there is nothing on the horizon that will generate the type of economic growth we witnessed in the 1950s and 60s. Therefore, our country should anticipate at least a decade of economic stagnancy.
Click on the comment link below and a box will appear.
Thursday, January 7, 2010
Wednesday, January 6, 2010
Tuesday, January 5, 2010
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