Reviews for Economics and the Family

The average rating for Economics and the Family based on 2 reviews is 3 stars.

Review # 1 was written on 2018-06-13 00:00:00 Ariel Rieken As a review of this book, Macroeconomics, third Edition (Krugman and Wells), I will overview the intro and the first chapter. a) The invisible hand, my benefit your cost, good and bad times b) And some of the principles that underlie individual choices (principle 1 and principle, how economies work (principle 5 and principle 9), and finally economy-wide interaction (principle 10 and principle 12). Invisible hand The invisible hand refers to the way in which the individual pursuit of self-interest can lead to good results for society as a whole. This concept was appearing for the first time in a famous passage in the book (The Wealth of Nations) of one of the pioneers of economics, the Scottish Adam Smith. The pursuit of this self-interest also implied either in the production, the distribution or the consumption of goods and services, and the study of this whole activity is what are called economics. The first chapter is also about principles; which are the core of economics and underlie individual choice; such as: Principle 1: people must make choice because resources are scarce. There are at least two factors that constrain people to not have all they want: the limited time and income. Even though someone may have the necessary money to purchase all he/she wants, but the fact is there’s not enough time to use or enjoy all of them. So people need to make choices. Principle 2: the opportunity cost of an item-what you must give up in order to get it-is its true cost. Resources are limited, a choice has to be made about what goods or services to have or not. By making a choice, certainly they have any other goods and services that would be left out, and this is the price to pay for the one you opt for. In economics, this term (the opportunity cost) refers to what you must give up when making a choice. Principle 3: “How much” decisions require making trade-offs at the margin: comparing the costs and benefits of doing a little bit more of an activity versus doing a little bit less. (“How much” is a decision at the margin) Principle 4: People usually respond to incentive, exploiting opportunities to make them better off. As people tend to make choices in each of the situation that presents to them, so incentive would be a key element to encourage and prompt people in making a specific choice rather than another one. The invisible hand and the twelve principles, respectively, for the introduction and the first chapter is the basis to dive into the rest of the book, but also the necessary key element in order to have a better understanding of economics in general.

Review # 2 was written on 2011-04-13 00:00:00 Pia Hilton .