Tag: Comparative Statics
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Communicating Probability Margins in Economics
Economists spend a lot of time talking about some margins of adjustment, such as quantity, quality and price. Other margins are rarely discussed formally, such as the likelihood that a stock price will rise tomorrow (or next year) or the probability that a natural disaster is so bad that it causes a “hundred-year flood”. A…
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Ticketmaster Monopoly Ruling: A Law and Economics Perspective
A couple of weeks ago, the media reported that a jury had found Ticket Master (and Live Nation) guilty of being an illegal monopoly. The media quoted people on the street who said the obvious: “I am looking forward to paying lower prices for concert tickets.” Yet, there is no cartel amongst concert promoters (that…
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The Girl Who Cried Pearls: A Hidden Economic Masterpiece
A previous post noted that many movies contain economic lessons. The purpose of this very short post is to encourage you to watch The Girl who Cried Pearls for many reasons. It won an Oscar for Animated Short Film last night, which adds to the NFB‘s long list of awards. I think that this story…
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An important question to ask yourself when investing
You might have heard the news that stock price indexes are hitting record highs. So, many people are asking: is now the time to sell or is now the time to buy? My goal in this post is to explain why that is the wrong question and that the answer to the better question depends…
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Three Quotes that Define True Education Success
As students return to classrooms, it is good time to think about what is worth learning. Many facts could be learned but, if that were the goal of an education, graduation ceremonies should be replaced with trivia contests. The real goal is wisdom, because wisdom overcomes ignorance and guides applications.
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Economic Lessons Hidden in Popular Movies
The Oscars® are handed out on March 2, and, in many Canadian provinces, Spring Break for high school students is soon after. So, now is a good time to remember that some movies present important economic ideas entertainingly. Most movies do a bad job of conveying economic ideas precisely.
5 Basic Principles of Economics 