Tag: Economics

Intro to Cost-Benefit Analysis

hello and welcome to this video series on cost-benefit analysis in this first video will quickly introduce the difference between looking at decision making from the perspective of a private firm and from the perspective of a larger society and hopefully you’ll start to get a feel for what a cost-benefit analysis is meant to …

What Is the Factor Income Approach?

What Is the Factor Income Approach?

♪ [music] ♪ – [woman] What is the “factor income approach”? It describes one approach to calculating GDP through income. Also known as the “income approach,” the factor income approach measures GDP by adding up employee compensation, rent, interest, and profit. Now this may seem a little bit odd. Didn’t we define GDP as the …

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 …

Keith Chen: Could your language affect your ability to save money?

Keith Chen: Could your language affect your ability to save money?

Translator: Timothy Covell Reviewer: Morton Bast The global economic financial crisis has reignited public interest in something that’s actually one of the oldest questions in economics, dating back to at least before Adam Smith. And that is, why is it that countries with seemingly similar economies and institutions can display radically different savings behavior? Now, …

Why The Rich Pay Lower Taxes

Why The Rich Pay Lower Taxes

Good morning John, and welcome to this special edition of Vlogbrothers where we discuss the basics of the United States Tax Policy and why Warren Buffett pays a lower tax rate than his secretary. According to the United States government, there are basically three ways to make money. One: You can inherit it when someone …

5 Inequality Myths

5 Inequality Myths

ANTONY DAVIES: Myths about inequality. Myth number one. Profit and plunder are the same thing. Imagine a person who provides services to society. Maybe he mows lawns, or fixes cars, or paints houses, and in return for these services he provides to others, he asks for something in return, maybe some food, clothing and shelter. …

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 …