This is a video on youtube, directed by George Mason University's Russell Roberts. It details the conflicting economic philosophies of famed economists Friedrich Hayek and John Maynard Keynes, but in rap form!
We think you'll enjoy it:
http://www.youtube.com/watch?v=d0nERTFo-Sk
Happy viewing!
-MaroonEcon
EDIT:
Here's another one:
http://www.educationalrap.com/music-contents/Demand_Supply-m764_p816.html
Friday, November 5, 2010
Why should I give a sh** about economics?
Hey everyone!
So this is our first post. Before we explore other topics of interest more in depth, we thought we should shed light on the relevance and practicality of having economics knowledge. Economics is not the "dismal science," but takes part every day in our lives.
Imagine this: it's a hot summer's day, and you're outside. You have plenty of liquid asset on you (liquid asset=cash), but the nearest grocery store to buy a drink from is a mile away, and you're on foot. Looks like you'll probably dehydrate before you even turn the street corner...
But wait! Could it be??? Out of the corner of your eye, you glimpse a young entrepreneur. Yes, it is an elementary school student selling lemonade! Your dehydration problems are solved!
"How much for a cup of lemonade?", you inquire of the future economist.
"Just 25 cents," he responds.
You open up your wallet, remove a quarter, and hand it to the boy. In exchange, he hands you a delicious cup of homemade lemonade. This transaction maximizes utility (utility=satisfaction derived from consumption) for both of you: you get to quench your thirst, the budding entrepreneur makes a profit. You value the lemonade more than the quarter, and the young lemonade salesman values the quarter more than his cup of lemonade. Mmmmmm delicious.
This is not a hypothetical scenario-it's probably not hard to believe that I actually had this experience, as I am sure many of you out there have as well.
Right as I was about to leave, the kid informed me that "refills are fifteen cents." When I heard this statement, I chuckled sheepishly to myself. This is the Law of Diminishing Marginal Utility in action, demonstrated by a child who is half my age!
Economists like to think in marginal turns, which is, we like to think of the costs and benefits associated with each additional unit consumed. Perhaps I wasn't thirsty enough to pay another whole quarter for a cup of lemonade, but when the price was lowered, I found that the benefit, or enjoyment, I get from that new cup of lemonade exceeds the price I had to pay.
Economics does not just apply to lemonade. Pretty much any decision you make, whether to eat another hamburger at McDonald's, whether to take an additional class this term in college, or whether or not to buy a new car, involves the analysis of the cost you have to pay, and the benefit you receive. It should be noted that cost is not always monetary-something that is "free" could take up a lot of your time, which you could have used to do something else.
So now you see how economics has applications in even the most trivial of daily occurences. Hopefully you found it somewhat enlightening, or at the at least interesting. In future posts, we will continue to explore more intriguing topics.
-Kelly Tian
So this is our first post. Before we explore other topics of interest more in depth, we thought we should shed light on the relevance and practicality of having economics knowledge. Economics is not the "dismal science," but takes part every day in our lives.
Imagine this: it's a hot summer's day, and you're outside. You have plenty of liquid asset on you (liquid asset=cash), but the nearest grocery store to buy a drink from is a mile away, and you're on foot. Looks like you'll probably dehydrate before you even turn the street corner...
But wait! Could it be??? Out of the corner of your eye, you glimpse a young entrepreneur. Yes, it is an elementary school student selling lemonade! Your dehydration problems are solved!
"How much for a cup of lemonade?", you inquire of the future economist.
"Just 25 cents," he responds.
You open up your wallet, remove a quarter, and hand it to the boy. In exchange, he hands you a delicious cup of homemade lemonade. This transaction maximizes utility (utility=satisfaction derived from consumption) for both of you: you get to quench your thirst, the budding entrepreneur makes a profit. You value the lemonade more than the quarter, and the young lemonade salesman values the quarter more than his cup of lemonade. Mmmmmm delicious.
This is not a hypothetical scenario-it's probably not hard to believe that I actually had this experience, as I am sure many of you out there have as well.
Right as I was about to leave, the kid informed me that "refills are fifteen cents." When I heard this statement, I chuckled sheepishly to myself. This is the Law of Diminishing Marginal Utility in action, demonstrated by a child who is half my age!
Economists like to think in marginal turns, which is, we like to think of the costs and benefits associated with each additional unit consumed. Perhaps I wasn't thirsty enough to pay another whole quarter for a cup of lemonade, but when the price was lowered, I found that the benefit, or enjoyment, I get from that new cup of lemonade exceeds the price I had to pay.
Economics does not just apply to lemonade. Pretty much any decision you make, whether to eat another hamburger at McDonald's, whether to take an additional class this term in college, or whether or not to buy a new car, involves the analysis of the cost you have to pay, and the benefit you receive. It should be noted that cost is not always monetary-something that is "free" could take up a lot of your time, which you could have used to do something else.
So now you see how economics has applications in even the most trivial of daily occurences. Hopefully you found it somewhat enlightening, or at the at least interesting. In future posts, we will continue to explore more intriguing topics.
-Kelly Tian
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