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Continuing his discussion of prices, Baetjer explains what can go wrong when outside interference prevents genuine market prices from emerging.
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Having discussed supply and demand separately, Baetjer explains how, together, they describe the way markets operate.
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Baetjer explains the “supply” half of “supply and demand. ”
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Baetjer explains the “demand” half of “supply and demand. ”
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All economic behavior occurs at the margin. The decisions of economic actors are “bit by bit” decisions, not all-or-nothing ones.
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Baetjer explains scarcity, the problem that any given good of finite supply can only ever be put to some of the many ends for which we might use it, and opportunity cost, the concept that taking one option costs us the benefit we would have gotten from taking the next-best option instead.
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Howard Baetjer outlines some basic concepts essential to understanding economics, including the natures of wealth and economic value.
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What would a libertarian society look like? Which changes in that direction are most important?
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Dr. Miron briefly discusses criminal justice, intellectual property, scientific research, risk management, campaign finance, abortion, and behavioral economics.
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National defense is a legitimate function of government, but military spending and the scope of military action tend to grow to excess.
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Policies aimed at economic stabilization do more harm than good. Macroeconomic policy should be focused not on stabilization, but on economic growth.
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There’s a plausible case, though not a fully persuasive one, for redistributing income to relieve poverty. Other forms of redistribution should be eliminated.
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Government intervention has lowered the quality of medical care and made it more expensive.
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Even though markets aren’t perfect, most regulations end up being counterproductive. Other regulations, like contract enforcement and rules against fraud, help.
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Markets have been shown to be effective to a degree in combating certain types of discrimination. Anti-discrimination laws have drawbacks we shouldn’t ignore.
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