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How does private savings impact investment?  Why is it important for individuals to save in an economy?  How do public policies such as tax policies affect savings rates?  How do government budget deficits affect interest rates? Private savings impact investment by individuals choosing to add to the nations savings. It is important for individuals toContinue reading “Chapter 13 Reflection”

What affects human productivity?  Does public policy affect the availability of resources people need to be productive?  How? Give an example of a public policy you think either inhibits or promotes long run productivity growth. I think many factors affect human productivity, the ability to be provided the correct tools to do the job, educationContinue reading “Chapter 12 Reflection”

Many of you live in an area with high cost of living.  Is that something you considered before you moved to a ski area? I do live in an area with a high cost of living. It was not something I considered when I moved here over ten years ago, however, it is something IContinue reading “Chapter 11 Reflection”

1.  What is the difference between an intermediate good and a final good?  Why do we care? The difference between an intermediate good and a final good is an intermediate good is part of the process that becomes the final good. In economics, we care because the GDP includes only the value of the finalContinue reading “Chapter 10 Reflection”

1.  Describe efficiency from the perspective of an economist. Efficiency from the perspective of an economist is defined as a state in which all resources are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency. 2. Why are producer and consumer surpluses important in determining market equilibrium? ProducerContinue reading “Chapter 7 Reflection”

Read this article from the Times: http://www.nytimes.com/2012/04/21/world/americas/venezuela-faces-shortages-in-grocery-staples.html?_r=1 (Links to an external site.) How does this relate to the theories from the chapter? The article about the Venezuelan government and its strict price controls on food in an attempt to help the poor relates to this chapter in a few ways. Food in free-market economies should follow theContinue reading “Chapter 6 Reflection”

In many large cities you can now use your cell phone to call Uber or Lyft instead of hailing a taxi.  Would you expect this to affect the prices of taxi medallions (that is really the supply of taxis)?  Why or why not?  Talk about supply and demand curves in your answer. Make sure youContinue reading “Chapter 4 Reflection”

What are two weaknesses in the buy local argument?A weakness in the buy local argument is that not much is 100% made locally in a modern economy and that some parts of production of an item comes from somewhere else. Also, buying locally would raise prices and limit the variety of products. After watching theContinue reading “Chapter 3 Reflection”

How does the use of a very simplified model of the economy such as those found in a production possibilities frontier help you to understand the economy? Did you find it useful?The use of a simplified model the economy such as the production possibilities frontier helps me to understand the economy by providing a veryContinue reading “Chapter 2 Reflection”

What in this chapter made you think about an economic concept differently than your previous beliefs?   Chapter 1 touched on Principle 6: Markets are usually a good way to organize economic activity. This section touches on the difference between central planned economies and market economies and the preference for most countries to move toContinue reading “Chapter 1 Reflection”