Scarcity, Opportunity Cost and Competition impact our decision-making moment to moment. This makes economics the basis of life as we know it, after God. Nothing that people value is free, someone pays the cost. To gain that thing of value, scarce resources are given up and cannot be given up again for a different thing of value. And we all are competing to capture those scarce resources.
Sunday, February 28, 2010
Economic Development and US
From Thomas Sowell's book "Applied Economics", "All the numerous interacting factors behind economic development make it virtually impossible that different parts of the world would all have equal development, and therefore equal standards of living, at any given time. Yet the puzzlement, unease and dissatisfaction caused by seeing large economic disparities between societies have created demands for explanations - usually without creating an equal demand for years of study of the historical, geographical and economic factors behind these disparities. Instead, there has been a demand for simple and emotionally satisfying explanations, especially melodramatic explanations with ideological overtones...to solutions favored by those inclined toward controlling other people's lives."
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Share your unique economics experiences. What did you have to give up to gain that which at the moment seemed so necessary to you? Imperfect information spanked you and now diminishing marginal utility smacks you upside the head, eh?