Priyanka's Econ Blog

THE ECONOMIST August 31, 2009

Filed under: Section 1 — priyanka821 @ 5:12 am

The Economist, a commendable, interesting, and vivid magazine, is also available online. I would recommend  it  to anyone and everyone to visit it at least once a day. I can guarantee that anyone could find something they are interested in, whether it be about the Afghanistan elections, books and art or Japan’s jobless rate. From stock markets, fish markets to shoe markets, the site accounts for changes and how mundane events affect our economy. The universal magazine is based in Britain, but successfully  covers  events from around the globe. Not only  is it packed with useful articles, but  graphs and charts are available when appropriate to help the reader understand  highlighting trends. So, when you’re sitting at home alone on a rainy day, sipping coffee, bored out of your mind, definitely visit The Economist  online because I assure you, you will learn something worthwhile.


Opportunity Cost August 28, 2009

Filed under: Section 1 — priyanka821 @ 1:20 am


Opportunity Cost of War

Opportunity Cost of War

1. Reservation Price:  What is the actual maximum value

2. Total Utility: BENEFIT

3. CHECK YOUR RESERVATION PRICE- testing the prices you would pay for the product. Example: highest price you would pay for a pair of Jacob shoes.

4. Do a cost benefit analysis

5. Account for all factors and  translate  into money

6. Opportunity cost value: the next best thing

7. Benefits equal the highest price you’ll pay – reservation price


Japanese Nurses August 26, 2009

Filed under: Section 1 — priyanka821 @ 10:05 am

With a shortage of nurses and abundance of senior citizens, Japan faces a crisis. I believe that it is perfectly acceptable to recruit foreign nurses to cope with this shortage, especially because Japanese nurses do not want to take upon this job.

The idea of robots replacing nurses does not appeal to me. No one wants to grow old and be taken care by robots.  I would never want to be taken care of by a robot; I would prefer a nurse whom I can talk to about the latest Prada collections and news. It doesn’t seem right to replace robots to take of old people, when there are perfectly healthy people in foreign land who are willing to nurse. These foreign nurses also have a lower wage than Japanese nurses, and therefore it is economical. It is also nicer for the old people sincethey won’t have to stare at an innate object that listens to their commands everyday .

I disagree that these foreign nurses do not have scope in Japan. I know many families that have hired Filipino house-keeprs, and the house-keepers seem to enjoy their life here and also make a greater income than they would back in their home countries. While some may call this expoilt, it can also be seen as a favor to the foreign nurese as they are earning more than they would in their own countries.


Why I Chose Economics August 25, 2009

Filed under: Section 1 — priyanka821 @ 12:33 pm
Someone Who Truly Cares For the Economy

Someone Who Truly Cares For the Economy

I chose Economics because I love bags. And shoes. This is the only subject which will teach me to  make wise decisions with money because after all, my want and need for bags and shoes  are unlimited. Especially in a time like this, with Economics making the headlines everyday and a depression not so far away, I believe it’s important to know how to handle and invest money to ensure future success.  In our world today, money is a prime factor and basically essential for survival. Economics is the study of choices regarding how people allocate their resources and I believe it is important to atleast know the fundamentals of economics to be succesful, and it  holds the secrets to owning lots of shoes and bags :).


Scarcity, Survival, Society August 24, 2009

Filed under: Section 1 — priyanka821 @ 11:06 am

1. How are scarcity and survival intertwined?

Every resource or good is limited, however, our wants (the desire for Mark Jacob shoes and Gucci bags) are unlimited. Economics is the study of how we allocate our resources and goods to fit with our wants and needs. Economics is the study of how scarcity impacts our needs and how we reach them. In order to survive, we must meet our needs (and no, Gucci bags are not a need). Our resources are scarce and limited butwe must obtain them to live. In Darwinian, those who cannot reach their needs are weeded out by society. So, in order to survive we must satisfy  our needs even though the resources are limited. An example of this is water. Luckily for us this is not an issue, but for those in Sudan who barely get water everyday, water is a scarce resource . There is competition for the water, and those who satisfy their need for water survive as water is an essential part in survival.

2. What are advantages and disadvantages of the two ways societies have been organized in the past?

The first of two ways the economy has been managed in the past is through a traditional economy. In this economy, work is customized by passing it down to each generation from their fathers. This meant that there would never be food shortage because there were enough farmers. All jobs would be done sufficiently as each person would be specialized to do their own duty for the community. However, geniuses would be lost in this society. What if Isaac Newton was assigned to be a potter? We would not know what pulls us down to the earth. And if Christian Dior was assigned to be a farmer, we would have lost a major part of fashion to the farms.

The second way man organized society is through a harsh authoritarian society. This society’s leaders have already planned their economic survival through authoritative power and by assigning jobs to certain people , in turn, making sure each job is done. This may mean each member of the society or in each person in a section of specialization is receiving the same amount of pay. This leaves no incentive to make new discoveries or work hard because in the end, everyone gets about the same. An example of this sort of society is North Korea; while each person is entitled to their job, leaving a very small rate unemployed, productivity is not at its highest.

3. Why was there no need for economists throughout most of history?

Economics is a brand-new science dealing with the study of choices people make  with their money to content their wants and needs. Up until recently(last few hundred years), most communities were traditional or authoritarian, meaning people had no control over the choices they make with their money. Tradition and authoritarian societies oppressed the birth of economics. Finally, the market system, where every person was responsible for their own survival arose, leaving each person responsible for attaining their own needs and wants. This was more incentive to work, and resulted in economic growth as well as an expansion of knowledge.

4. Why do you think the Economic Revolution was so disturbing?

While the Economic Revolution was a very important and successful one, it was one which caused a lot of uneasiness. As this new idea of a market system arose, the prevailing centuries’ economic security blanked was lifted. In a traditional society all the occupations were distributed and so there was a balance within the community to make sure that the lavish and lousy jobs were done. In an authoritarian society, there was always a figure of power who could correct any detrimental flaws in their system. On the other hand, the market system left each player in the market depending on themselves to survive and acquire the limited resources they needed. Although a risky step, after the revolution people were free to do any job they wished to ensure monetary success.  Louis Vuitton was free to make hand bags, Charles Dickens was free to write, and the Wright Brothers were free to invest and make the first airplane. Each person could choose their own passion to develop which provided incentive to work.