Chapter 1 Economics Defined
I. Basic Terms 3 Videos
II. Economic Models 1 Video
II. United States Economic Goals 1 Video
IV. Economic Disciplines 4 Videos
V. Why Economist Disagree 1 Video
VI. Sundry Materials 2 Videos
Preface: Political Economy American Capitalism is designed to efficiently maximize total production while creating the profit required to pay for perceived risk. American Politics is designed to satisfy perceived needs of the majority in accordance with the US Constitution. It evolves to meet majority needs while protect minority rights with decisions compatible with American Capitalism. Disputes settled by the Supreme court's interpretation of the US Constitution.
or Political Economy
I. Basic Terms
A. Economy is the social science concerned with the use of
resources like land and labor to fulfill human needs.
B. Resources are the inputs, want satisfaction is the output
C. Key Concepts for understanding and analysis
1. Scarcity of resources results in the need for choices by participants.
2. Purposeful behavior by participants (buyers and sellers) is exhibited
to enhance their own rational self interest.
See Economics in the dock 6 min video
3. Marginal analysis where the change in benefit received is balanced
with the change in cost is a common purposeful behavior.
See Margins and Thinking at the Margin
4. Fallacy of composition: applying to the whole that which is true for
a part without adequate proof. 1 and 3 are odd numbers, so four is
odd number. This fallacy is the basis of police profiling. See
Why Do People Continue to Believe Stupid Economic Ideas -
Mark Blyth 5 min video
5. Fallacy of division: This is the assumption that if something is true
for the whole then it must be true for its parts. The absolutely worst
abuse here involves inferring from an average that all elements are
6. Post hoc fallacy: Assumption that correlation proves causation.
This is related to the concept in law of circumstantial evidence.
7. Cum Hoc Fallacy :simultaneous correlations while post hoc refers
to sequential correlations.
8. Logical fallacies is a pattern of reasoning rendered invalid by a flaw
in its logical structure that can neatly be expressed in a standard
D. Economic methodology
1. Positive economics
a. What something is
b. Objective, can be measured
c. Example: measuring disposable personal income which is an
individual's salary after taxes
d. A Theorem on the Methodology of Positive Economics
e. Inflation Binary
2. Normative economics
a. What something ought to be
b. Subjective, difficult to measure
c. Requires value judgments by citizens, Political Action Committees
(PAC's), politicians, economists, etc.
d. Examples: should the minimum wage be increased, should
defense spending increase and social spending be lowered
3. Descriptive economics
a. Looking at the real-world to develop Economic Theory
b. Economic Theory
1. Generalizations concerning economic behavior based upon real
-world observations, empirical by nature
2. Economic theories are objective "positive economics"
3. Assumes behavior is rational and economic (self-serving)
4. Example: as the price of a product increases, consumers tend
to buy less
c. Economic Policy
1. Application of economic theory to solve economic problems
2. Economic policies are subjective, "normative economics".
3. How society makes economic choices such as in the 1980's
when spending for the elderly (Social Security) increased
and spending for children (Head Start) decreased 1234
4. Using Statistics
1. Why Do Economists Use Statistics?
2. Common Errors interpreting Statistics
3. Beginning with video 3 the series, statistics
are used in a questionable manner to analyze
to current economic issues of concern to Libertarians.
II. United States Economic Goals
D. Economic Report of the President
|Macro Activity||Micro Activity||
Schools of Economic Thought
|2016 Economic Trends Cleveland FED|
|1. Inflation rate||1. A product's price||Econometricians||Economicpopulist.org/ Articles, Videos|
|2. Economic growth||2. Pollution||
Behavioral- Economics 3 min
Behavioral Economics? 4 min
How Behavioral Economics Changed The World
85 min video
Regional Economist and
FRED down load FED data St. Louis FED
|3. Total employment||3. Poverty||International Economics||
Library of Economic
|4. The business cycle||4. A competitive market||
|Center for Economic and Policy Research|
Introduction to Macro
98 m Video
|What is Microeconomics 1:54 Video||Public Economics||
U.S. Political Economy
one-page on varied topics
|1 Wiki explanation is extensive, for now, the first few paragraphs are sufficient.||2 Wiki explanation is extensive, for now, the first paragraph is sufficient.||Financial Economics||textbooksfree.org/ much free stuff|
See How Economy Works 30 min video
|Economics is for Everyone 11.min video|