There's no place for economists in heaven because it doesn't have scarcity.
Conception:Scarcity
Scarcity isn't limits;it's a relative idea.People face scarcity all the time because we always demand more even though the resources are abundant.
Way to deal with scarcity Economize:Comparison between expected benefit and expected cost. Consumers should be rational to compare the value and cost, which are subjective and unique to everybody.
Other things that we care about in economics:(1)the rule of game (2)the belonging of the property (3)cultural laws
Incentive changes result
Example: The increase of profit that captains got changed their attitude toward criminals on the boats and thus ensure them to land on new world to work.
Economic studies prudence & temperance
Definition of Economics:
Study of emergence of order and wealth creation and consequences choices made as a part of standard order of human corporation.
No comments:
Post a Comment