Sunday, March 12, 2017
Chapter 33 Blog Post
This chapter discusses the fluctuations that take place in the market on an often basis. In econ so far (or rather in macroeconomics) we have tended to pay more attention to the what typically happens to the market in the long term. In this chapter we now focus on what happens immediately, and how that may affect our expectations of what might happen in the long run. Much like any other chapter we explore the many different possibilities that may lead to a higher aggregate supply and aggregate demand. Aggregate supply and demand are variables basically dictated by how much we may want to purchase abroad, opposed to domestically. This to me still doesn't quite make that much sense to me, as I'm sure that we could very easily use what we learned from the last chapter to dictate all of this. The only positive to choosing the latter is that it seems to be very time efficient as it requires less graphs. I found the reading to once again be a little too time consuming and long. I believe that they made the chapter a little too long and content heavy so one can only imagine what the assessment on the chapter will contain.
Tuesday, February 28, 2017
Chapter 32 Blog Post
Chapter 32 begins to trace back on the topics that we have covered in the past. You can tell that the book is now finally coming to an end because the book is now summarizing an cross interpreting topics we have already covered. For example the chapter 26's loan-able markets concept and chapter 31's export and imports. This being the case, I felt as though I could easily get this chapter since this was a stuff we have already talked about it to an extent.
I think that the only thing that made this chapter a little more difficult than the rest of the chapters was the implementation of the supply and the demand curve. This is the much more different than the supply curve shown in the previous chapter so this completely messed me up. After trying so hard to grasp the curves and the logic behind them, I feel that this is contradicting them and this ultimately will mess me up during the ap free response testing.
I think that the only thing that made this chapter a little more difficult than the rest of the chapters was the implementation of the supply and the demand curve. This is the much more different than the supply curve shown in the previous chapter so this completely messed me up. After trying so hard to grasp the curves and the logic behind them, I feel that this is contradicting them and this ultimately will mess me up during the ap free response testing.
Thursday, February 16, 2017
Chapter 30 Blog Spot
This chapter touches on the topic of inflation. This is pretty appropriate in my opinion because we've just talked about the distribution of money and how the supply can increase or decreased based on different events. Given previous history classes I already associated excess money distribution with rising money levels and ultimately inflation. In this chapter however we learned about inflation in a different matter. The quantity theory of money finally made the idea that more money leads to inflation a real things (or at least a valid thought).
Despite understanding this chapter pretty well, the end kind of tripped me up ( which I suppose is pretty common at this point). I don't quite understand the point of classical dichotomy and why it is so important. I understand what it is, but not so much why it exists. Other than that I do understand monetary neutrality and actually find the idea of velocity of money quite interesting. I would have never guessed that there was an ounce of physics ideology in economics. Regardless it did help understand the concept a little more, as I do better on a more mathematically heavy topic. It also quite interesting that we try to figure out how quickly money will travel through the economy.
Finally I don't quite understand the idea of increasing revenue through inflation tax. Since the price level is increasing wouldn't the money really just be the same unless the government were able to immediately decrease the price level after collecting the tax?
Despite understanding this chapter pretty well, the end kind of tripped me up ( which I suppose is pretty common at this point). I don't quite understand the point of classical dichotomy and why it is so important. I understand what it is, but not so much why it exists. Other than that I do understand monetary neutrality and actually find the idea of velocity of money quite interesting. I would have never guessed that there was an ounce of physics ideology in economics. Regardless it did help understand the concept a little more, as I do better on a more mathematically heavy topic. It also quite interesting that we try to figure out how quickly money will travel through the economy.
Finally I don't quite understand the idea of increasing revenue through inflation tax. Since the price level is increasing wouldn't the money really just be the same unless the government were able to immediately decrease the price level after collecting the tax?
Thursday, February 9, 2017
Chapter 29 Blog Spot
This chapter begins to discuss the true definition of money and its actual importance in the financial system today. This chapter explains that money is essentially what helps us efficiently exchange items of variable values. Opposed to just assuming what's of equal trade value for everything, it is stated that money helps establish a measurement so that everyone is getting a fair trade. It also talks about how rare it is for two specific traders to want what the other has to offer. To avoid searching for items that hold equal importance, it's best that currency exists. This was a pretty simple concept, because this is stuff that I have witnessed. Despite not having though of it to this extent, I think that this only helped my understanding of the purpose of money.
The second part of the chapter talks about money's cycle through institutions such as banks and Federal Reserve Banks. I found this to be interesting as, I never quite realized that banks relied on another "intermediary" when providing money. I found all of that dandy, however struggled to understand the money multiplier and fractional reserve banking stuff. Hopefully that is explained in great detail in class, so that I will be solid for the next test.
The second part of the chapter talks about money's cycle through institutions such as banks and Federal Reserve Banks. I found this to be interesting as, I never quite realized that banks relied on another "intermediary" when providing money. I found all of that dandy, however struggled to understand the money multiplier and fractional reserve banking stuff. Hopefully that is explained in great detail in class, so that I will be solid for the next test.
Sunday, February 5, 2017
Chapter 28 Blog Post
This chapter covers the topic of unemployed. Despite the common knowledge that there is a work force and people can choose to be in or out of it, not many people know what necessarily constitutes being in or out of the work force. This chapter uncovers all of the truths behind unemployment and the many different factors that are taken into consideration to qualify for unemployment aid (money from the government). From tis we also discussed the many different ways that people try to cheat the system such as faking attempt to get a real job, or getting paid under the table. This brings up many debatable topics but for the purposes of keeping the chapter concise they keep the controversy to a minimum.
I think that this chapter was not very difficult to understand. This is something that many of us in the class are familiar with, (the concept, to the situation). I think that the reading was pretty straight forward, however I know that this, much like all of Econ, will be hard to comprehend on a test. I hope to finally be able to go in during my free periods (3rd and 4th) to receive assistance so that my grade doesn't drop soon in the second semester.
I think that this chapter was not very difficult to understand. This is something that many of us in the class are familiar with, (the concept, to the situation). I think that the reading was pretty straight forward, however I know that this, much like all of Econ, will be hard to comprehend on a test. I hope to finally be able to go in during my free periods (3rd and 4th) to receive assistance so that my grade doesn't drop soon in the second semester.
Wednesday, January 25, 2017
Chapter 27 Blog Post
Shahid Monametsi
This chapter discusses the basic tools used in finance when analyzing a financial market ( by the looks of it they are mostly focused on bonds in this chapter). I found this chapter to be easy to understand as it is often times the applied situations on tests that I struggle to understand. This chapter, however, seemed to have none of that built into the lesson, so I am positive that I will be able to succeed. This chapter covers the range of approaches that people (investors) take when they consider purchasing ownership. It was a little easier to digest as the last chapter covered this topic in great detail (the slightly easier portion of the unit test). To me this all seems very relate-able as risk aversion happens in everyday life. It only seems natural that it play a part in finance when choosing a stock or bond. Even the equations in this chapter were easy to grasp as they were all covered to an extent in math classes.
The only thing that I struggle to understand was the utility function. I'm not really sure how they got that shape from the risk aversion. One would think that wealth would only raise and that the curve would be concave up. I fail to comprehend why it is a flat line and hope to uncover this in the future, before any testing.
This chapter discusses the basic tools used in finance when analyzing a financial market ( by the looks of it they are mostly focused on bonds in this chapter). I found this chapter to be easy to understand as it is often times the applied situations on tests that I struggle to understand. This chapter, however, seemed to have none of that built into the lesson, so I am positive that I will be able to succeed. This chapter covers the range of approaches that people (investors) take when they consider purchasing ownership. It was a little easier to digest as the last chapter covered this topic in great detail (the slightly easier portion of the unit test). To me this all seems very relate-able as risk aversion happens in everyday life. It only seems natural that it play a part in finance when choosing a stock or bond. Even the equations in this chapter were easy to grasp as they were all covered to an extent in math classes.
The only thing that I struggle to understand was the utility function. I'm not really sure how they got that shape from the risk aversion. One would think that wealth would only raise and that the curve would be concave up. I fail to comprehend why it is a flat line and hope to uncover this in the future, before any testing.
Thursday, January 19, 2017
Chapter 26 Blog Post
This chapter discusses financial economics. It covers the the investment aspect of economics which is more specifically the investments portion of GDP. While I originally knew how to derive/ isolate the I in the equation of GDP (Y), I'm not too sure how to find the other equations that the book gave us. I know that we will most likely have to have memorized those though, I know that I will definitely have to commit that to my memory in the coming days.
Another thing that this chapter cover was the idea that the laws of supply and demand play a similar role when talking about investments. This to me was very shocking, as I did not think that I would be using a supply and demand chart in a chapter like this. This, however did make the concept easier for me to understand as it is not very complex. From there the chapter then talks about the factors that then affect the equilibrium interest. This was too difficult to comprehend either as this was also very similar to the factors stated in supply and demand. I think that this chapter will not be bad, however the tests always trip me up, so we'll see.
Another thing that this chapter cover was the idea that the laws of supply and demand play a similar role when talking about investments. This to me was very shocking, as I did not think that I would be using a supply and demand chart in a chapter like this. This, however did make the concept easier for me to understand as it is not very complex. From there the chapter then talks about the factors that then affect the equilibrium interest. This was too difficult to comprehend either as this was also very similar to the factors stated in supply and demand. I think that this chapter will not be bad, however the tests always trip me up, so we'll see.
Monday, January 16, 2017
Chapter 24 Blog Post
This chapter moves onto CPI (consumer price index) and PPI (producer price index). This however becomes a little confusing at times, as one can't help but wonder what the purpose of GDP and the GDP deflator is at this point. It is important to remember (or learn I suppose) that GDP measures produced goods, while the CPI focuses on purchased goods. This most definitely one of the more trickier parts of the chapter. The equations were not that hard to grasp, however I'm sure that will trip up a lot of people. I hope to fully grasp the importance and differentiate the two measurements. I also hope to remember the factors that weight into CPI misconceptions (substitution biases, Introduction to new goods, and Unmeasured quality changes.
Something I didn't quite like from this chapter was how they approached the explanation of measuring inflation. I fail to understand the differences between the inflations received from CPI and GDP deflators. The chapter also makes it seem as though the price will always increase. I think that that is very misleading, as that may not be the case if one might be looking a recession. I myself am still not quite sure how to figure out when a recession occurs, but I think that it would be great if the writer (Mankiw) or Mr. Waller took time to explicitly talk about this.
Something I didn't quite like from this chapter was how they approached the explanation of measuring inflation. I fail to understand the differences between the inflations received from CPI and GDP deflators. The chapter also makes it seem as though the price will always increase. I think that that is very misleading, as that may not be the case if one might be looking a recession. I myself am still not quite sure how to figure out when a recession occurs, but I think that it would be great if the writer (Mankiw) or Mr. Waller took time to explicitly talk about this.
Sunday, January 8, 2017
Chapter 23 Blog Post
This chapter begins by differentiating between microeconomics and macroeconomics. After having spent the first half of the schools learning about micro it was nice to look back at the definition, because it reminds you the purpose of everything you've learned.
The new information in this chapter covers Gross Domestic Product and the many markets that contribute to a nation's GDP. I thought that this all seemed fairly similar as we have covered something similar to the flow chart in the micro section of econ. It also made sense that black market products did not contribute as they are not sold over the counter/ legally. While I knew about the Gross Domestic Product and its use before this chapter I had no idea that there were different types or about GDP Deflator. I don't quite understand the reason for there being two different measurement, but I acknowledge them. I like how the book thought to finish off by saying economically well off does not equate to happiness. This seems to be a common debate, and I found it interesting that the book even felt the need to bring that up.
The new information in this chapter covers Gross Domestic Product and the many markets that contribute to a nation's GDP. I thought that this all seemed fairly similar as we have covered something similar to the flow chart in the micro section of econ. It also made sense that black market products did not contribute as they are not sold over the counter/ legally. While I knew about the Gross Domestic Product and its use before this chapter I had no idea that there were different types or about GDP Deflator. I don't quite understand the reason for there being two different measurement, but I acknowledge them. I like how the book thought to finish off by saying economically well off does not equate to happiness. This seems to be a common debate, and I found it interesting that the book even felt the need to bring that up.
Sunday, December 4, 2016
Chapter 18 Blog Post
This chapter covers the idea of markets for factors of production. Before even reading this I immediately remembered the flow chart we received numerous chapters ago relating firms, households, job markets, and factors of productions. This chapter dives further into what factors of production might entail and why it is so important for a company to heavily consider them when pursuing their business.
This chapter overall made sense to me. I understood it pretty much as marginal cost only with people, which was made it easier take in at first. I understand that it is highly beneficial for competitive markets, however the book made it seem as though this were not applicable to markets such as monopolies of oligopolies. Would this idea not be just as beneficial to them? I was a little confused by this but I won't let this get in head. Another thing that kind of confused my in this chapter was the differentiated factors that affect supply and demand. I didn't quite understand why they some of the situations didn't go both ways, but again this is something that I know not to focus too heavily on. Overall the chapter was easy to understand, but a little clarification in class would be great.
This chapter overall made sense to me. I understood it pretty much as marginal cost only with people, which was made it easier take in at first. I understand that it is highly beneficial for competitive markets, however the book made it seem as though this were not applicable to markets such as monopolies of oligopolies. Would this idea not be just as beneficial to them? I was a little confused by this but I won't let this get in head. Another thing that kind of confused my in this chapter was the differentiated factors that affect supply and demand. I didn't quite understand why they some of the situations didn't go both ways, but again this is something that I know not to focus too heavily on. Overall the chapter was easy to understand, but a little clarification in class would be great.
Sunday, November 27, 2016
Chapter 17 Blog Post
In this chapter, Mankiw discusses oligopolies. It talks about the difficulties of maintaining such a market due to the greed of an individual firms and antitrust laws. It also talks about the many theories that go into maintaing an efficient market. I thought that this chapter was actually pretty easy to understand, because the chapter basically described something that fell in between perfectly competition and monopoly. I found it fairly easy to understand why oligopolies might've wanted to form cartels through collusion, and why it might've been a problem. It also made sense to how too many would just create another competitive market. Something that actually didn't quite make sense to me was the in depth game theory ideals. The stuff discussing Bonnie and Clyde kind of confused me, because I feel as though oligopolies would talk before making any decision. If this were the case then prisoner theory wouldn't actually be a problem worth worrying about (unless selfishness were the only factor driving decisions). Other than that the chapter was pretty interesting and I can't wait to have it throughly explained in class as I find that to be really helpful.
Wednesday, November 16, 2016
Chapter 16 Blog Post
This chapter begins by discussing/ exploring the idea that monopolies have the potential to also be competitive. This idea confused me from the beginning, as I thought that monopolies were characterized as having no competition what so ever. I know that I will struggle to grasp this chapter as I was able to get by the previous one with this understanding. It'll be a pain trying to distinguish markets, oligopolies, and markets in this aspect now since they're like all very similar. I also really thought that there were no close substitutes in the market when there was a monopoly so the fact that competition happens due to potential replacements definitely confuses me.
Besides this concept (really just the beginning) this chapter was not that bad. I was definitely able to understand the long and short run affects for the monopolistic market. It all made sense, because the previous chapter helped us understand what dictates profit and everything. I don't quite understand why it is so desirable to exactly break even, however I do know that that is a good place to be regardless so I might bring it up in class, or just shut up about it, depending on further reading/ rereading.
Besides this concept (really just the beginning) this chapter was not that bad. I was definitely able to understand the long and short run affects for the monopolistic market. It all made sense, because the previous chapter helped us understand what dictates profit and everything. I don't quite understand why it is so desirable to exactly break even, however I do know that that is a good place to be regardless so I might bring it up in class, or just shut up about it, depending on further reading/ rereading.
Monday, November 7, 2016
Chapter 15 Blog Post
Shahid Monametsi
This Chapter discuss the affects and rises of monopolies. I think that this is actually a fairly simple chapter to sink one's teeth into as this was not a very difficult chapter. I thought that this was fairly simple, because the we have kind of touched on the topic of monopolies and their power however it is nice to finally read the extent of their power. In this chapter you not only read about what they are (along with real world applications), but also the regulations put in place to check their power. This was once again easy to take in, because we have covered the idea that government intervention is necessary so that the market (perfect or not) works at full efficiency.
If I had to really pick something tricky about this chapter, it would be the fact that there was so much covered in a single chapter. If I do recall this was same stuff was covered for markets, however it took around 4 or 5 chapters to summarize all of the knowledge pertaining to deadweight loss, government intervention etc. I know that it should be easy to understand to an extent, however I had a troubles taking in all of the information and I know that this will definitely mess me up on the test.
This Chapter discuss the affects and rises of monopolies. I think that this is actually a fairly simple chapter to sink one's teeth into as this was not a very difficult chapter. I thought that this was fairly simple, because the we have kind of touched on the topic of monopolies and their power however it is nice to finally read the extent of their power. In this chapter you not only read about what they are (along with real world applications), but also the regulations put in place to check their power. This was once again easy to take in, because we have covered the idea that government intervention is necessary so that the market (perfect or not) works at full efficiency.
If I had to really pick something tricky about this chapter, it would be the fact that there was so much covered in a single chapter. If I do recall this was same stuff was covered for markets, however it took around 4 or 5 chapters to summarize all of the knowledge pertaining to deadweight loss, government intervention etc. I know that it should be easy to understand to an extent, however I had a troubles taking in all of the information and I know that this will definitely mess me up on the test.
Monday, October 31, 2016
Chapter 14 Blog Post
Shahid Monametsi
This chapter discusses the competitiveness of the markets and how this affects separate competitors decisions when selling. This chapter also brings the ideas of supply and demand together with the fairly new concepts introduced in the previous chapter. This chapter really confused me. I know that it is hard especially since the last chapter was a little difficult for me to understand, however this was far less equation heavy. I didn't quite understand the graphs. It was not until I referred back to the elasticity laws/ logic that I was able to understand what was going on. Even then I was still left wondering how to calculate profit from this. I know that that is a pretty huge portion of the chapter, so I hope to learn that soon.
Another thing that I fail to understand is the idea of exits, enters, shutdowns, and sunk costs. If asked to figure that out on a graph (with the the total cost and what not given), I know that I would genuinely struggle with this. That also seems like a difficult yet important part, so I definitely plan on receiving help on this chapter.
This chapter discusses the competitiveness of the markets and how this affects separate competitors decisions when selling. This chapter also brings the ideas of supply and demand together with the fairly new concepts introduced in the previous chapter. This chapter really confused me. I know that it is hard especially since the last chapter was a little difficult for me to understand, however this was far less equation heavy. I didn't quite understand the graphs. It was not until I referred back to the elasticity laws/ logic that I was able to understand what was going on. Even then I was still left wondering how to calculate profit from this. I know that that is a pretty huge portion of the chapter, so I hope to learn that soon.
Another thing that I fail to understand is the idea of exits, enters, shutdowns, and sunk costs. If asked to figure that out on a graph (with the the total cost and what not given), I know that I would genuinely struggle with this. That also seems like a difficult yet important part, so I definitely plan on receiving help on this chapter.
Tuesday, October 25, 2016
Chapter 13 Blog Post
Shahid Monametsi
Chapter thirteen discusses the idea of total cost and how to calculate and interpret this through a graph. This chapter had a lot of content in it making it a little difficult to absorb when first reading it. After a while you begin to realize that this chapter was actually kind of reiterating everything in more complicated terms. For example the way to calculate the total marginal cost seemed pretty clear when it was discussed at the beginning of the chapter, yet the book still talks about calculating it, slope- wise. This seems incredibly redundant and makes a simple concept seem long and tedious.
Overall the content of this chapter was pretty easy to understand. I think that everything that we learned in previous chapter (especially chapter 4) has prepared us for the idea that the end goal is to have profits i.e make money. This made it very easy to use economic reasoning, once again, to work through the actual substance.
Chapter thirteen discusses the idea of total cost and how to calculate and interpret this through a graph. This chapter had a lot of content in it making it a little difficult to absorb when first reading it. After a while you begin to realize that this chapter was actually kind of reiterating everything in more complicated terms. For example the way to calculate the total marginal cost seemed pretty clear when it was discussed at the beginning of the chapter, yet the book still talks about calculating it, slope- wise. This seems incredibly redundant and makes a simple concept seem long and tedious.
Overall the content of this chapter was pretty easy to understand. I think that everything that we learned in previous chapter (especially chapter 4) has prepared us for the idea that the end goal is to have profits i.e make money. This made it very easy to use economic reasoning, once again, to work through the actual substance.
Sunday, October 23, 2016
Chapter 11 Blog Post
Shahid Monametsi
This chapter was very interesting in my opinion. Despite not having any complicated math behind the concept, I still find that there are some concepts that may trip me up on the test. I understand the terms "rival in consumption" and "excludability", however I have troubles trying to sort the 4 categories of goods. Natural monopolies always confuse as I still don't quite understand how they are not rival in consumptions thus leading me to mix them up with private goods. I am also confused by the difference between tragedy of the commons and the free rider problem. I understand when and how they are both applicable, yet I fail to see the difference in the two ideas. This most likely won't be a problem on a quiz however it was definitely something that puzzled me throughout the reading.
Overall this chapter was fairly simple. I can see how it might be viewed as a little more difficult than the previous chapters however I found it overall to be very comprehendible. I for the most part discusses the ideas of moral and common sense so if ever in doubt I know that I could reason through a question which I find comforting.
This chapter was very interesting in my opinion. Despite not having any complicated math behind the concept, I still find that there are some concepts that may trip me up on the test. I understand the terms "rival in consumption" and "excludability", however I have troubles trying to sort the 4 categories of goods. Natural monopolies always confuse as I still don't quite understand how they are not rival in consumptions thus leading me to mix them up with private goods. I am also confused by the difference between tragedy of the commons and the free rider problem. I understand when and how they are both applicable, yet I fail to see the difference in the two ideas. This most likely won't be a problem on a quiz however it was definitely something that puzzled me throughout the reading.
Overall this chapter was fairly simple. I can see how it might be viewed as a little more difficult than the previous chapters however I found it overall to be very comprehendible. I for the most part discusses the ideas of moral and common sense so if ever in doubt I know that I could reason through a question which I find comforting.
Sunday, October 16, 2016
Chapter 10 Blog Post
Shahid Monametsi
I actually really enjoyed reading this chapter because despite focusing on the practical human greed aspect of business and economics I find it refreshing to also read about the social effects business have/ must uphold. I know that extrenalities are dealt with for the purpose of furthering profit and all, however I think that this is a very important for those who actually want to go into this discipline to understand that there are consequences for all actions and I think that this is one of those lessons.
Despite finding most of this section to be common sense I did not actually know that there was such a thing as positive of extrenalities. The concept was easy but it seemed as though extrenalities only had a negative connotation. The Coase's Theorem is also relatively new to me however I found that this was really just a way of talking about settling disputes, which is the chapter in its entirety.
I actually really enjoyed reading this chapter because despite focusing on the practical human greed aspect of business and economics I find it refreshing to also read about the social effects business have/ must uphold. I know that extrenalities are dealt with for the purpose of furthering profit and all, however I think that this is a very important for those who actually want to go into this discipline to understand that there are consequences for all actions and I think that this is one of those lessons.
Despite finding most of this section to be common sense I did not actually know that there was such a thing as positive of extrenalities. The concept was easy but it seemed as though extrenalities only had a negative connotation. The Coase's Theorem is also relatively new to me however I found that this was really just a way of talking about settling disputes, which is the chapter in its entirety.
Monday, October 10, 2016
Chapter 8 Blog Post
Shahid Monametsi
Chapter 8 was not at all a very difficult chapter to grasp. It was really just an extension of the previous two chapter which talked broadly of the idea of taxes. This chapter simply verified the idea that taxes kind of screw over both the buyer and the seller. I have yet to come up with an actually proposal however I feel like there should be a better way to fund for public amenities.
I suppose this chapter did introduce the two new ideas though: the concept of deadweight loss and Laffer's model. I don't actually understand how we might be tested on the model however I feel as though I understood the meaning of the curve. It makes sense that there is a "sweet spot" in the sense that too little levied leads to no benefit and too much may result in economic chaos. deadweight loss makes me once again question the efficiency of tax, but I understand how to calculate it nonetheless.
Chapter 8 was not at all a very difficult chapter to grasp. It was really just an extension of the previous two chapter which talked broadly of the idea of taxes. This chapter simply verified the idea that taxes kind of screw over both the buyer and the seller. I have yet to come up with an actually proposal however I feel like there should be a better way to fund for public amenities.
I suppose this chapter did introduce the two new ideas though: the concept of deadweight loss and Laffer's model. I don't actually understand how we might be tested on the model however I feel as though I understood the meaning of the curve. It makes sense that there is a "sweet spot" in the sense that too little levied leads to no benefit and too much may result in economic chaos. deadweight loss makes me once again question the efficiency of tax, but I understand how to calculate it nonetheless.
Tuesday, October 4, 2016
Chapter 7 Blog Post
Shahid Monametsi
This chapter confused me numerous times. I know that this was meant to be on of the easier topics (especially after tax wedges and what not), however I feel as though I failed to grasp a lot of the concepts covered at the moments. I feel as though the book made calculating the consumer surplus far more complicated than it actually is, and I found myself getting lost in the transition. Nonetheless, I think that this chapter is very intriguing because it further explains the human reactions in the economy. I felt as though this chapter was more realistic than the earlier chapters in the sense that it takes into account human reaction and the tendency to want more for less (greediness).
One part of the chapter that came across completely clear to me was the social planner bit. While I thought price was the only thing guiding the market (as explained in the invisible hand ideal), having a character/ person in charge made everything easier to follow for some reason. The equations provided to find Total Surplus seemed logical, however I know that I could never derive them if ever needed.
I found the end of the chapter to be a brief summary of everything we've learned. While the term Market Failure is new, I believe that the cause and effects made perfect sense based off of what we've already learned (policy makers interferences and efficient proaction).
This chapter confused me numerous times. I know that this was meant to be on of the easier topics (especially after tax wedges and what not), however I feel as though I failed to grasp a lot of the concepts covered at the moments. I feel as though the book made calculating the consumer surplus far more complicated than it actually is, and I found myself getting lost in the transition. Nonetheless, I think that this chapter is very intriguing because it further explains the human reactions in the economy. I felt as though this chapter was more realistic than the earlier chapters in the sense that it takes into account human reaction and the tendency to want more for less (greediness).
One part of the chapter that came across completely clear to me was the social planner bit. While I thought price was the only thing guiding the market (as explained in the invisible hand ideal), having a character/ person in charge made everything easier to follow for some reason. The equations provided to find Total Surplus seemed logical, however I know that I could never derive them if ever needed.
I found the end of the chapter to be a brief summary of everything we've learned. While the term Market Failure is new, I believe that the cause and effects made perfect sense based off of what we've already learned (policy makers interferences and efficient proaction).
Wednesday, September 28, 2016
Chapter 6 Blog Post
Despite struggling to grasp the concept of elasticity until the near end, I am happy to move on. I found that chapter 5 required a little too much calculating for my liking which brings me to why I thoroughly enjoyed chapter 6. This chapter discussed the effect that the government has on demand and supply. It reiterates one of the ten principles again (government can benefit the market) to show just how well the government can effect the quantity demanded of supplied for goods. I thought that this chapter for the most part was easier to follow, because there were real life examples with every term. Not only does this show the practically/ real world application of the idea, but also helps me personally understand the term(s).
Overall I think the policy making and theoretical aspect of economics is a lot easier, and I think that this chapter was much easier to digest. I actually really found the bit on taxes and who ends up paying the most from that system. I hope to talk more about the elastic and inelastic properties of this section though, because that was definitely one portion that confused me.
Overall I think the policy making and theoretical aspect of economics is a lot easier, and I think that this chapter was much easier to digest. I actually really found the bit on taxes and who ends up paying the most from that system. I hope to talk more about the elastic and inelastic properties of this section though, because that was definitely one portion that confused me.
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