5 Basic Principles of Economics

Thinking Like an Economist

Tag: Equilibrium Compatibility

  • Navigating Tariff Uncertainty using Inventories

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    People in Canada are thinking about the tariffs, retaliatory tariffs, reciprocal tariffs and threats of more from the US. There was a time before and, eventually, markets will adjust to the time after. The challenge is to manage the time in between. The media focus on layoffs and, until other buyers can be found, production…

  • Economic Lessons Hidden in Popular Movies

    Economic Lessons Hidden in Popular Movies

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    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.

  • Thinking Strategically while Getting Punched in the Mouth

    Thinking Strategically while Getting Punched in the Mouth

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    Canada, and other countries, were just punched in the mouth by the threat of tariffs imposed by the US. When faced with a problem, some people propose a “plan” to fix it but a plan is not a strategy. Strategizing is hard work. Some memorable quotes offer memorable advice.

  • Economic Impact of a Dragon Year: Luck vs. Reality

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    The Year of Dragon is believed to auspicious and lucky in Chinese culture. Research has found that more than the usual number of babies are born in China during Dragon Years, and that there are more marriages than usual. Then what? To recognize the end of the Year of the Dragon and the start of…

  • Unexpected Economic Insights During Christmas

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    Christmas is an enjoyable time for many, including many non-Christians living in countries where Christians are a minority. It is a time for presents and food and thinking of others. This post identifies some unexpected ways that the five basic principles of economics appear during this time. Familiar attempts to apply economic ideas to Christmas…

  • Market Control: How Barriers Impact Prices

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    Some economic discussions start by assuming that the market in question is perfectly (or almost perfectly) competitive. Other discussions start by assuming that a firm is mostly monopolistic. Understanding the difference matters, for several reasons. There are examples of monopolists and of cartel agreements [1] [2] [3]. Other investigations are on-going while politicians ask for…