1 / 64

First papers

First papers. Ok, what’s up with all those scrawls on my paper??. MLA. 2000 Ford Mustang GT. Mint, mint, mint! Low miles... 81,000 Think how quickly you can get from SCTI to Meadowlands Worship Center Price:. 2000 Ford Mustang GT. Mint, mint, mint! Low miles... 81,000

albany
Télécharger la présentation

First papers

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. First papers

  2. Ok, what’s up with all those scrawls on my paper??

  3. MLA

  4. 2000 Ford Mustang GT Mint, mint, mint! Low miles... 81,000 Think how quickly you can get from SCTI to Meadowlands Worship Center Price:

  5. 2000 Ford Mustang GT Mint, mint, mint! Low miles... 81,000 Think how quickly you can get from SCTI to Meadowlands Worship Center Price: only $145,000!!!!!!!!!!!!!!!!!

  6. Is that the price?

  7. Bonus: did you see an F/E on preceding slides?

  8. Presenting The Pricing Players In a world-premier production of Prices

  9. “Since we know that the key task facing any economy is the allocation of SRTHAU, the next question is: How does an economy do that?”

  10. Prices

  11. Prices No one person or bureaucracy -- whether in Moscow, Beijing, Tallahassee or Washington -- can possibly effectively coordinate all the millions of economic transaction that occur each minute in a complex society

  12. Prices No one person or bureaucracy -- whether in Moscow, Beijing, Tallahassee or Washington -- can possibly effectively coordinate all the millions of economic transaction that occur each minute in a complex society Example of USSR food system compared to Britain’s

  13. Prices No one person or bureaucracy -- whether in Moscow, Beijing, Tallahassee or Washington -- can possibly effectively coordinate all the millions of economic transaction that occur each minute in a complex society Example of USSR food system compared to Britain’s Gorbachev with “little understanding of economics” as leader of the biggest nation

  14. Primary Roles of Prices

  15. Primary Roles of Prices Convey terms of financial transactions among consumers, producers, retailers, workers, landlord, etc.

  16. Primary Roles of Prices Convey terms of financial transactions among consumers, producers, retailers, workers, landlord, etc. Prices help determine how much of each resource get used, where it gets used, and how the resulting products are distributed

  17. Primary Roles of Prices Convey terms of financial transactions among consumers, producers, retailers, workers, landlord, etc. Prices help determine how much of each resource get used, where it gets used, and how the resulting products are distributed Provide incentives to affect behavior in the use of resources and their resulting products

  18. “Prices are like messengers conveying news”Why is that?

  19. Prices • Why does Dr. Sowell compare prices to the worldwide web?

  20. Prices • Why does Dr. Sowell compare prices to the worldwide web? • Prices connect you to anyone, anywhere where prices operate freely

  21. Prices • Why does Dr. Sowell compare prices to the worldwide web? • Prices connect you to anyone, anywhere where prices operate freely • Price-coordinated markets enable people to signal to other people how much they want and what they’re willing to pay

  22. Prices • Why does Dr. Sowell compare prices to the worldwide web? • Prices connect you to anyone, anywhere where prices operate freely • Price-coordinated markets enable people to signal to other people how much they want and what they’re willing to pay • VW Jetta

  23. Profits & Losses • Why are losses as important as profits to businesses in a free market economy?

  24. Profits & Losses • Why are losses as important as profits to businesses in a free market economy? • Profits provide incentives to use scare resources more efficiently because decisions are guided by prices

  25. Profits & Losses • Why are losses as important as profits to businesses in a free market economy? • Profits provide incentives to use scare resources more efficiently because decisions are guided by prices • Losses tell producers what to stop producing

  26. Prices and Central Planning • Countries with socialist or Marxist economic systems rely on central planners to set prices and determine what goods are produced and where

  27. Prices and Central Planning • Countries with socialist or Marxist economic systems rely on central planners to set prices and determine what goods are produced and where • Importantly: at no point in history can we find an example where central planning has consistently produced more prosperity than allowing prices to fluctuate via supply and demand

  28. Growing U.S. Central Planning

  29. Growing U.S. Central Planning Health care reform (aka Obamacare) creates 159 new federal agencies

  30. Growing U.S. Central Planning Health care reform (aka Obamacare) creates 159 new federal agencies Financial reform act (aka Dodd-Frank) creates dozens of new agencies to do everything from set credit card interest, ATM fees and dictate % of minorities/women in financial businesses

  31. Growing U.S. central planning Health care reform (aka Obamacare) creates 159 new federal agencies Financial reform act (aka Dodd-Frank) creates dozens of new agencies to do everything from set credit card interest, ATM fees and dictate % of minorities/women in financial businesses All federal agencies such as EPA and SEC aggressively expanding regulations

  32. “No matter how much we wish to organize everything rationally, without waste, no matter how passionately we wish to lay all the bricks of the economic structure tightly, with no chinks in the mortar, it is not yet within our power.” Nikolai Shmelev & Vladimir Popov USSR economists

  33. Consequences matter more than ______

  34. Consequences matter more than intentions

  35. Prices and Costs Prices become economic realities only if others are willing to pay them

  36. Prices and Costs Prices become economic realities only if others are willing to pay them Not up to us to decide prices

  37. Prices and Costs Prices become economic realities only if others are willing to pay them Not up to us to decide prices Up to other producers selling same goods and services and what others are willing to pay

  38. Gordon Gekko: ‘Greed is good’

  39. Do high prices reflect greed?

  40. Do high prices reflect greed? Competition is what limits what you can charge and still make sales

  41. Do high prices reflect greed? Competition is what limits what you can charge and still make sales Alex Rodriquez, New York Yankees $231 million in earnings so far

  42. Do high prices reflect greed? Competition is what limits what you can charge and still make sales Alex Rodriquez, New York Yankees, $231 million in earnings so far Retail clerk: $15,000-$20,000 year

  43. Do high prices reflect greed? Competition is what limits what you can charge and still make sales Alex Rodriquez, New York Yankees, $231 million in earnings so far Retail clerk: $15,000-$20,000 year What news do those figures bring us?

  44. How do prices allocate SRTHAU?

More Related