Author Archives: bust20

1.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 saving impacts investment because it is a good investment of your money if you can make intrust onContinue 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. Human capital Investment will always lead to an increase in human productivity. Public policy can defiantly effect the availability ofContinue reading “Chapter 12 Reflection”

1.How much can someone change the rate of inflation they face by changing what they purchase? Is this a serious overestimation problem with the CPI? Do you time your purchases around sales? Do you change your purchases because of sales? If someone is very frugal with their money, they can change the rate of inflationContinue reading “Chapter 11 Reflection”

What is the difference between an intermediate good and a final good?  Why do we care? The difference between intermediate goods and final goods are that intermediate goods are used to create final goods, and the final goods are what counts towards our GDP, intermediate goods do not count toward our GDP. We do careContinue reading “Chapter 10 Reflection”

1.  Describe efficiency from the perspective of an economist. From the view of an economist, efficiency can be described as a statistic of the total surplus received by everyone in the economy. 2. Why are producer and consumer surpluses important in determining market equilibrium? Producer and consumer surpluses are very important in determining the marketContinue 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? This article relates to chapter 6, because in Caracas Venezuela, there was a shortage of groceries that could have been prevented if price floors had been imposed. If those price floors were imposed, Caracas couldContinue reading “Chapter 6 Reflection”

1) 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?  The use of cellphones for Uber and other ride share platformsContinue reading “Chapter 4 Reflection”

Video Link: https://www.mruniversity.com/courses/everyday-economics/buy-local-movement-shop-small-business 1) What are two weaknesses in the buy local argument? Even if you are buying local, the local business usually don’t keep the money flowing in the local community. Just because a product is made locally, the supplies used to make the product are not necessarily local supplies. 2) After watching theContinue reading “Chapter 3 Reflection”

1) 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? Models such as the production possibilities frontier can be very useful in understanding the economy. I found this model useful to understandContinue reading “Chapter 2 Reflection”

1) What in this chapter made you think about an economic concept differently than your previous beliefs? In this chapter, the most important thing I learned is about the importance opportunity cost. High net-worth individuals might have a larger opportunity cost when considering their time. 2) What new questions do you have now about theContinue reading “Chapter 1 Reflection”