How real GDP helps us know if we’re ‘better off’ than before

Note: This is post #71 in a weekly video series on basic economics. “Are you better off today than you were 4 years ago? What about 40 years ago?” These sorts of questions invite a different kind of query, says Alex Tabarrok: what exactly do we mean, when we say “better off?” And more importantly, how do we know if we’re better off or not? Continue Reading...

How marginal utility affects consumer choice

Note: This is post #69 in a weekly video series on basic microeconomics. When we buy a good or make a decision about how to use our time, we do so because we believe we are getting some sort of value from our choice, such as a sense of happiness or satisfaction. Continue Reading...