Last Updated on 5/22/19 Hyperinflation is a dirty dog. For those who may not be familiar with what exactly hyperinflation is, it boils down to a government printing too much doggone money in relation to the productivity of its economy. It’s the classic situation where you have “too much money chasing too little goods and … More Zimbabwe and Hyperinflation: Some Thoughts
Here are some fundamentals of consumer choice: Limited income necessitates choice. Consumers make choices purposefully. One good can be substituted for another. Consumers make choices without perfect information, but knowledge & past experiences do help. The Law of Diminishing Marginal Utility: As the rate of the consumption of a consumer good increases, the marginal utility … More Some Fundamentals of Consumer Choice
The markets for resources and products are closely linked. Households supply resources (such as labor) to businesses earn income, and businesses supply products (goods and services) to households. It’s a yin and yang thang, baby. The labor market is a vital resource market. If there’s an increase in the demand for a product, then the … More Applications & Extensions of Supply and Demand
There is an inverse relationship between price and the quantity of a good that people are willing to purchase. As a natural function of markets, most people are willing to buy less of a good as its price increases, and they’re willing to buy more of a good as the price decreases. As a side … More The Law of Demand, Consumer Choice, the Market Process, Etc.
Private property rights involve three things: The right to exclusive use of the property (that is, the owner has sole possession, control, and use of the property, including the right to exclude others); Legal protection against invasion from other individuals who would seek to use or abuse the property without the owner’s permission; and The … More Private Property Rights and Private Ownership
Value can be created through exchanges that move goods to people who value them more. Trade is a way to facilitate this type of exchange. Trade creates value. There’s no way that anyone would willingly enter into a trade if he/she didn’t see some potential for a derived benefit from the transaction. If one country … More Trade and Transaction Costs
Economics is in actuality the study of human behavior. It’s the study of how choice affects outcomes, and what makes humans choose what they choose in light of the scarce availability of resources in the world. Economizing behavior is when you adjust your behavior to position yourself for the most benefit at the least possible … More Notes on Opportunity Cost, Etc.