updated 9d ago
Modern Principles of Economics
Big Idea Two: Good Institutions Align Self-Interest with the Social Interest
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
Big Idea Three: Trade-offs Are Everywhere
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
The inevitability of trade-offs is the consequence of a big fact about the world, scarcity. We face trade-offs because we don’t have enough resources to satisfy all of our wants—more of this means less of that. The great economic problem is how to arrange our scarce resources to satisfy as many of our wants as possible.
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
The great economic problem is how to arrange our scarce resources to satisfy as many of our wants as possible.
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
The theory of comparative advantage says that to increase its wealth, a country should produce the goods it can make at low cost and buy the goods that it can make only at high cost.
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
quantity demanded The quantity demanded is the quantity that buyers are willing and able to buy at a particular price.
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
equilibrium quantity The equilibrium quantity is the quantity at which the quantity demanded is equal to the quantity supplied.
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 8mo ago
shortage A shortage is a situation in which the quantity demanded is greater than the quantity supplied.
from Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 7mo ago
The division of knowledge increases with specialization and trade. Economic growth in the modern era is primarily due to the creation of new knowledge. Thus, one of the most momentous turning points in the division of knowledge happens when trade is extensive enough to support large numbers of scientists, engineers, and entrepreneurs, all of whom s
... See morefrom Modern Principles of Economics by Tyler Cowen
Zach Kirshner added 7mo ago