Tag: Economics (Field Of Study)

Entry, Exit, and Supply Curves: Constant Costs

Entry, Exit, and Supply Curves: Constant Costs

♪ [music] ♪ – [Alex] Okay — this talk is going to be a bit more involved. What we’re going to show is how a constant cost industry generates a flat supply curve. Let’s begin. A constant cost industry is one where it’s very easy to expand output without pushing up costs. So for example, …

The Costs and Benefits of Monopoly

The Costs and Benefits of Monopoly

♪ [music] ♪ – [Alex] In our final talk in monopoly, we’re going to discuss the costs of monopoly, but also the potential benefits. The major costs of monopoly is that compared to competition, monopoly is inefficient. It leads to a loss in the gains from trade or a deadweight loss. Let’s remind ourselves about …

Business Cycles Explained: Keynesian Theory

Business Cycles Explained: Keynesian Theory

Simple way to think about the Keynesian model. Keynesian, New Keynesian. But let’s boil it down to essentials. Economic downturns are very often caused by a shortfall in aggregate demand. Aggregate demand you can think of very crudely as spending. So more formally, aggregate demand is consumption plus investment plus government spending. Think of that …

The Hockey Stick of Human Prosperity

The Hockey Stick of Human Prosperity

♪ [music] ♪ – [Don] The astonishing growth in prosperity in the last two or three hundred years is one of the greatest events of humankind. Take the average human in, say, the year 1000 BC. He’s poor, fighting to find food and to fend off diseases. Fast forward 500 years to the time of …

Comparative Advantage and the Tragedy of Tasmania

Comparative Advantage and the Tragedy of Tasmania

♪ [music] ♪ – [Don Bourdreaux] Let me tell you about the island of Tasmania. It’s about 130 miles off the coast of South Eastern Australia A long time ago when seas were low Tasmania was part of Australia. During that time the archaeological record documents that Tasmanians fished, and they used bone tools. About …

Division of Labor: Burgers and Ships

Division of Labor: Burgers and Ships

♪ [music] ♪ – [Don] The benefits of voluntary trade are obvious. Suppose this guy has bananas and this guy has oranges. He needs oranges for marmalade and this guy needs bananas for banana bread. They swap — they exchange. Each guy is made better off through trade. In our last video, though, we saw …

Robert J. Shiller: “Phishing for Phools” | Talks at Google

Robert J. Shiller: “Phishing for Phools” | Talks at Google

MALE SPEAKER: Good afternoon. Welcome to Talks at Google in Cambridge, Massachusetts. Today it’s my great pleasure to introduce Robert Shiller. Dr. Shiller is Sterling Professor of Economics at Yale and winner of the 2013 Nobel Prize in economics. He’s the author of the New York Times best seller “Irrational Exuberance,” and with George Akerlof, …

Why Some Countries Are Poor and Others Rich

Why Some Countries Are Poor and Others Rich

There are 196 countries in the world. 25 of them are very rich, defined as having an average wealth per person of over $100,000 a year. They are: But far more countries are quite poor, and some – which we’re considering here – are very very poor. These are the 20 poorest countries in the …

The Foundations of Wealth – Full Video

The Foundations of Wealth – Full Video

MAN: I’m an average man. WOMAN: And I am an average woman. MAN: One thing about being the average man leading the primitive life – it gives you plenty of time for thinking. My wife thinks a lot. WOMAN: It’s true. Although we’re living ten- thousand years ago, I do think a lot but then, …