Nifty little online guide to Economics 101 - a very interesting read!

[Roy G Biv]

I found this while doing a google search. It's from some college economics professor. The thing that I like best about this introductory tutorial is that the writer understands and clearly explains that human beings respond to incentives. If the government creates such-and-such policy, then how will people respond? If the price of something changes, then how will people respond? I have always believed that the study of economics involves a substantial amount of psychology, because human beings do respond to incentives:

http://www.harpercollege.edu/mhealy/eco212i/lectures/5es/5es.htm

[drewb]

1. Study of economics is the study of human behavior...

If you really want to read something interesting check this book out...

http://www.amazon.com/exec/obidos/tg/detail/-/0945466358/qid=1072266420/sr=1-1/ref=sr_1_1/002-6113795-1419208?v=glance&s=books

or this one...

http://www.amazon.com/exec/obidos/ASIN/0471449733/qid=1072266494/sr=2-1/ref=sr_2_1/002-6113795-1419208

[izzie]

2. I will try and get them on loan Ec0.101 tells me I can not buy them

This statement over and over really gets me up-tight. Rich people hire people and no poor people give any one jobs. Most of the jobs in this town are made from the 'poor' people of this town. In the small city next door it is the same. The food market gets money from me and it helps pay the women checking out the food, the man behind the fish counter, Need I go on? If we must fight about this with GOP it will be the chicken and egg thing.We need each other and I would say they need us more than we need them. Barter is getting a lot of play in the last 10 years or so.

[drewb]

3. Ebay is a good example of a truly free market...

Prices are set there everyday on all kinds of items...

That is how an economy is supposed to work...

[cprise]

4. But people don't rely on eBay to supply food & shelter

eBay is a nice addition to the economy. But it isn't anywhere near a good model.

[drewb]

5. Why would you say that it isn't a good model?

Honest question...

[cprise]

6. Because people don't reduce everything to remote transactions

For many things, we like to interact with a person, inspect the product or service offered personally.

Imagine trying to feed yourself through something like eBay.

[drewb]

8. ok

good point...

I'm an oddball in that I prefer to not deal directly with people...

[micsca]

10. The jobs aren't "made" by the poor.

the "women checking out the food, the man behind the fish counter" do not own their jobs, the store does.

"Most of the jobs in this town are made from the 'poor' people of this town. " The jobs aren't "made" by the poor.

[SharonAnn]

12. To create wealth, labor is always involved but maybe not capital

Capital alone cannot create wealth. Having capital won't feed you and if no one will "labor" to grow it for you, you won't have food.

[Sir_Shrek]

14. Good point

Idle capital won't create wealth. In that case, it would probably just be called "money". It would only become capital when actually put to work.

[stevebreeze]

11. I could not disagree more

"Austrian school economics" is extremely unrealistic. It's basically the Ayn Rand, libertarian point of view. We are all better off if we don't give a shit about anyone else. I have been getting an e-mail from "misses.org." http://www.mises.org/elist.asp for some time.

I would recommend it only to give your self a different perspective.

A far better list serve can be found at http://www.cepr.net/
sign up there for economic reporting review.

:kick:

[drewb]

13. I'll check it out, can never have too many opinions...

n/t

[GAspnes]

7. I found it a little breezy and un-rigorous

but maybe that's just my style preference.

There are two real problems with trying to plug pyschology into economics, I think.

1) Everyones' psychology isn't the same. Children want different things than adults, my desire for a car is less than yours, &tc. &tc., and;

2) At the best of times, psychology is a pretty inexact discipline. It's occasionally possible to predict how a group may act, but it has rarely been the case that predictions about individuals are accurate.

It's a cute overview though.

[wetbandit2003]

9. The definition of Economics

This Guy's Definition of economics is a bit vague.
The correct Definition of economics is,
The social science that deals with how humans allocate scarce resources to satisfy their needs and insatiable wants.. In other words. Humans will allocate limited resources to attain their maximum utility for his / her needs and unlimited wants. There are always costs associated with using scarce resources, ie "opportunity costs"
Opportunity costs is defined as,,,the benifits(utility) forgone by choosing next best alternative" a good illustration of this concept is, you have $1.00 and you are at a gas station. your gas tank is empty and your house is 1 mile away. You are also hungry and see candy bars for $0.95. Which choice would you make. you could buy the candy bar and you wont be hungry, but you now have no money to put gas in your car. If you choose to buy the gas, you can put gas in your car, drive home and get something out of the fridge. The $1.00 bill got you home and got you something to eat, wheras if you just bought the candy bar, you satisfied your hunger, but your chance to get your car home was forgone.

Economics answers the question,,,,What do I Need v/s what do I want.


A very good book on economics to concider.
Hazlett's "Economics in one lesson"