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Economics: Difference between revisions
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[Category:Social Studies] | [Category:Social Studies] | ||
Economics point of view | |||
== Economists look at human relations and outcomes through certain lenses, including: == | |||
* values & exchange | |||
* utility | |||
* incentives | |||
* impacts | |||
== Useful Economic vocabulary, models & theories == | == Useful Economic vocabulary, models & theories == | ||
=== Cost === | === Cost === | ||
* prospective cost | |||
** a cost of a transaction that may be avoided if action is taken | |||
* sunk cost | * sunk cost | ||
** a cost of a transaction that has already been incurred, and is therefore irretrievable (can't be taken back) | |||
=== goods === | === goods === | ||
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* Substitute good | * Substitute good | ||
=== | === labor === | ||
* division of labor | |||
* flexibility of labor | |||
=== externalities === | |||
* = impacts or consequences upon others (external) | * = impacts or consequences upon others (external) | ||
* externalities have an inherent duality | * externalities have an inherent duality | ||
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* the "prisoner's dilemma" represents a clash of individual versus group interests | * the "prisoner's dilemma" represents a clash of individual versus group interests | ||
** "dilemma" = a problem for which the solutions all reach a negative outcome | ** "dilemma" = a problem for which the solutions all reach a negative outcome | ||
*** as opposed to a "paradox" | *** as opposed to a [[Paradox|"paradox"]] | ||
* in the prisoner's dilemma, two prisoners must select between 1) confess to the crime or 2) remain silent | * in the prisoner's dilemma, two prisoners must select between 1) confess to the crime or 2) remain silent | ||
** each is held separately and does not know what the other will choose | ** each is held separately and does not know what the other will choose | ||
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|P1 goes free | |P1 goes free | ||
|P2 serves longest term | |P2 serves longest term | ||
| | | ✔ | ||
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| | | ✔ | ||
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|P2 goes free | |P2 goes free | ||
|P1 serves longest term | |P1 serves longest term | ||
| | |✔ | ||
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|↑ | |↑ | ||
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* aggregate supply | * aggregate supply | ||
=== Supply & demand === | === Supply & demand === | ||
* Say's Law | |||
** from Jean-Baptiste Say, "A Treatise on Political Economy" (''Traité d'économie politique''), 1803 | |||
* states that production is the source of demand | |||
** production = making things, providing services or things of value) | |||
** i.e, demand for things necessarily follows their production or offering | |||
*** demand may pre-exist something, but nothing of value is exchanged until that thing is produced and offered | |||
** Say's law is criticized for ignoring "gluts" (supply exceeds demand) and monetary impacts (such as inflation or deflation, which can impact demand outside of supply) | |||
* in general, Say's law correctly identifies the source of exchanged value: something must be offered for value | |||
=== Tragedy of the Commons === | === Tragedy of the Commons === | ||
== Corporate governance == | |||
=== ESG === | |||
=== Shareholder Theory === | |||
* for criticism of ESG and support of Shareholder Theory see: [https://www.theepochtimes.com/the-long-term-negative-effects-of-esg-will-be-catastrophic_5032320.html The Long-Term Negative Effects of ESG Will Be Catastrophic] | |||
=== Stakeholder Theory === | |||
== Lesson Plans == | == Lesson Plans == | ||
* [[Economics & ethics lesson plan|Economics & ethics lesson plan]] | * [[Economics & ethics lesson plan|Economics & ethics lesson plan]] | ||