cornell notes
Cornell Notes
Standards Review Notes
Page: 1__/2____
Topic: what is economics?
Name: Bartlett Shani
Chapter:
Date: 24/2/2014
Questions/ Main ideas
Vocabulary
Notes/ Answers/Definitions/ Examples/ Sentences
Economics
Both a social sience and a business sience.
It is concerned with understanding what economies produce, how they produce and who they produce for.
Two extream views
Market-orientated economists and economists that favour hierarchical command and control.
Market-orientated
Assume that individuals are most capable of deciding what is best for them.
Free and unfettered markets make available the sort of information that individuals need in order to make correct desisions, and that these desissions lead to best outcome for greatest number of individuals in society.
Hierarchical command and control
Believe that markets are inherently incapable of providing the appropriate information to individuals, and thus planners are capable of bringing about best. outcome for greatest number of individuals in society.
How is economics practiced?
It lies between the two extremes.
Which extreme is correct?
Neither.
Market can fail in many circumstances.
Benevolence necessary for success within planned economy is not common human trait and often has unintended negative consequences.
Aspects of economics
Philosophical and analytical.
Is it a good idea to avail young South Africans with wage subsidy to improve their employment chances?
Market-oriented = Yes if subsidy alleviated market failure, unless that failure was caused by minimum wage that was set above the equilibrium price.
Benevolent planner = Yes as long as subsidy increased youth employment, such policy cant be considered entirely within a vacuum.
Plausible that wage subsidy would increase youth employment, while reducing employment opportunities for non-youths.
Standards Review Notes
Page: 1__/2____
Topic: what is economics?
Name: Bartlett Shani
Chapter:
Date: 24/2/2014
Questions/ Main ideas
Vocabulary
Notes/ Answers/Definitions/ Examples/ Sentences
Economics
Both a social sience and a business sience.
It is concerned with understanding what economies produce, how they produce and who they produce for.
Two extream views
Market-orientated economists and economists that favour hierarchical command and control.
Market-orientated
Assume that individuals are most capable of deciding what is best for them.
Free and unfettered markets make available the sort of information that individuals need in order to make correct desisions, and that these desissions lead to best outcome for greatest number of individuals in society.
Hierarchical command and control
Believe that markets are inherently incapable of providing the appropriate information to individuals, and thus planners are capable of bringing about best. outcome for greatest number of individuals in society.
How is economics practiced?
It lies between the two extremes.
Which extreme is correct?
Neither.
Market can fail in many circumstances.
Benevolence necessary for success within planned economy is not common human trait and often has unintended negative consequences.
Aspects of economics
Philosophical and analytical.
Is it a good idea to avail young South Africans with wage subsidy to improve their employment chances?
Market-oriented = Yes if subsidy alleviated market failure, unless that failure was caused by minimum wage that was set above the equilibrium price.
Benevolent planner = Yes as long as subsidy increased youth employment, such policy cant be considered entirely within a vacuum.
Plausible that wage subsidy would increase youth employment, while reducing employment opportunities for non-youths.