The minimum wage as a price floor

Note: This is post #27 in a weekly video series on basic microeconomics. Minimum wages are a type of price floor, and as with all prices floors, when prices are kept artificially high they can lead to several consequences that hurt the consumer. Continue Reading...

How price controls can hurt the poor

Note: This is post #25 in a weekly video series on basic microeconomics. Suppose there is a mild winter on the West Coast and a harsh winter on the East Coast, says Alex Tabarrok, in this video by Marginal Revolution University. Continue Reading...

When Nixon tried to control prices

Note: This is post #21 in a weekly video series on basic microeconomics. President Nixon had a problem—inflation was out of control. So in 1971 he attempted to implement a drastic solution: he declared price increases illegal. Continue Reading...

Can prices predict the future?

Note: This is post #20 in a weekly video series on basic microeconomics. Prices can convey information about events. But can they even predict the future? Can we predict Middle East politics based on the price of oil futures? Continue Reading...

Is economic speculation immoral?

Note: This is post #19 in a weekly video series on basic microeconomics. Speculation is often considered to be morally dubious. But, can speculation actually be useful to the market process? Continue Reading...

How information and incentives solve economic problems

Note: This is post #18 in a weekly video series on basic microeconomics. To solve economic problems we need to solve information and incentive problems. In this video, Alex Tabarrok looks at how Nobel Prize-winner Friedrich Hayek described the price system and its approach to solving the information problem. Continue Reading...