Micro Economics Discussions Questions

Micro Economics Discussions/ 150 WORDS EACH

2. Slave redemption

https://www.youtube.com/watch?v=XOC_nIQ5its

Have you ever heard of this?  Could good intentions go awry?  What do you think?

3. Externalities

https://www.youtube.com/watch?v=FBjFDtH-iZM

This is a video from AC/DC econ about spillover effects we in economics like to call externalities.  These leakages from transactions make pricing and provision of these types of goods difficult for private companies.  Just like with the virus.  How does society deal with individual decisions that have a impact on bystanders?  It’s a tough one, many times necessitating some rules, regulation or public provision of goods.  Hope you like this.  Mr. Clifford uses the movie, Anchorman.

4. Bees and externalities

Ever thought about pollination being a positive externality?

https://www.youtube.com/watch?v=00HPak2RLlQ

So, what is the Coase Theorem?  What is the problem here?  What do Cowen and Tarrobak say are vague?  This is an important idea, especially today.  Many people don’t seem to feel like they need to worry about externalities (your effect on a bystander).  Some people refuse to admit they exist.  Maybe it’s just easier for them.  Did you know that bee stealing is a problem?  Folks steal bee hives, usually easy because they are many times in remote locations.  They take them to big growing states and make a bunch o money.

5. Why do we specialize?

Have you ever thought about why it is so productive to specialize and trade?  What principle struck you here?  Trade is responsible for our ever growing lifestyle.  Growth in textiles markets make our clothes short term expendable goods.  Wear it a few times, then toss it.  What would our grandmothers say!?

Here’s an interesting video from MRU.  These folks are really da’ bomb.

https://mru.org/courses/everyday-economics/division-labor-burgers-and-container-ships?utm_source=EX&utm_medium=MRU&utm_campaign=MRUEmail&utm_content=division-labor-burgers-and-container-ships&__s=79b855eshyhr2pvpb66g

Opportunity cost is the cost of choosing one item or activity over another. As mentioned in the referenced video about opportunity cost, if a person chooses to do multiple things, they have first to consider the time and resources for which they to do those things. This consideration is the practice of delegating the scarcity of time. Everyone’s resources and time are different; therefore, the cost of doing the same things is different. Opportunity Cost is the cost of each individual’s time and resources used to do one thing over another. I can see that it would be difficult to understand because placing a cost on items is more accessible than placing a cost on personal actions. Realizing cost does not necessarily mean a physical dollar amount will help me remember that opportunity cost is the cost of choosing one good or item over another. Hopefully, my description can help others also.

6. Nixon price ceilings

Nixon wage and price controls

https://mru.org/courses/principles-economics-microeconomics/price-controls-definition-nixon?utm_source=EX&utm_medium=MRU&utm_campaign=MRUEmail&utm_content=price-controls-definition-nixon

Why did Nixon do this?  What did most economists think about this?  Does good econ policy = good political theater?

Many other spillover effects from this policy.  Some are a little funny.