Posts tagged with: market

Note: This is the seventh post in a weekly video series on basic microeconomics.

In previous videos in this series from Marginal Revolution University we learned how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. In the next couple of videos you’ll see why the equilibrium price (he market price where the quantity of goods supplied is equal to the quantity of goods demanded) is the only stable price and whether this model works in the real world.


(more…)

Note: This is the fourth post in a weekly video series on basic microeconomics.

Now that we know what the supply and demand curves are we can put them together to understand how they affect prices.

In this video from Marginal Revolution University, we learn how prices reach equilibrium and how the market works like an invisible hand coordinating economic activity. We also discover why at equilibrium the price is stable and gains from trade are maximized, and why when the price is not at equilibrium, a shortage or a surplus occurs.

(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)

Previous in series: How to understand the supply curve

alfonso-mechanicAlfonso was looking for a “fast life,” and as a result, he got mixed up in illegal drugs and landed in prison.

For many, that kind of thing might signal the beginning of a pattern or slowly define and distort one’s identity or destiny. But for Alfonso, it was a wake-up call.

While in prison, he began to realize who he really was, and more importantly, whose he really was. He began to understand that God created him to be a gift-giver, and that the work of his hands was a form of worship to his Creator.

When he was released, he started an automotive repair shop, where he continues to meet the needs of his community in a variety of ways, material, spiritual, and otherwise.

Hear more about his story here:

(more…)

Blog author: jsunde
Tuesday, December 31, 2013
By

????????????????????????????????????In a recent piece for the Wall Street Journal, Emory economics professor Paul H. Rubin makes an interesting argument about the way economists tend to over-elevate and/or misconstrue the role of competition in the flourishing of markets.

“Competition plays a supporting role,” he argues, but “cooperation makes markets thrive”:

The way we use the term competition instead of cooperation fosters anti-market bias. “Competition” carries a negative connotation because it implies winners and losers, and our minds naturally feel sympathy for the losers. But cooperation evokes a positive response: It’s a win-win situation with no losers. And in fact the word competition doesn’t depict market activity as aptly as the word cooperation. The “competitive economy” would be better described as the “cooperative economy.”

Consider the most basic economic unit, the transaction. A transaction is cooperative because both parties gain from a voluntary exchange. There is competition in markets, but it’s actually competition for the right to cooperate. Firms must compete for the privilege of selling to consumers—for the right to cooperate with consumers. Workers compete for the right to cooperate with employers. Competition matters because it ensures that the most efficient players will gain the right to cooperate on the best terms available. But competition plays a supporting role, while cooperation makes markets thrive. (more…)

Over at Fieldnotes Magazine, Matthew Kaemingk offers a good reminder that in our social solutions-seeking we needn’t be limited to thinking only in terms of market and state. By boxing ourselves in as such, Kaemingk argues, Christians risk an overly simplistic, non-Biblical view of human needs and human destiny:

When presented with almost any social problem (education, health care, poverty, family life, and so on), today’s leaders typically point to one of two possible solutions—a freer market or a stronger state. But in opposition to these rather myopic solutions, I think there is a more complex and biblical lens through which leaders can consider the social eco-system and the people who move around in it.

Instead of simplistic descriptions of human beings as either clients of the state or competitors in the market, the Christian Scriptures present humanity in a refreshingly complex way. We find a complex creature with a wide variety of gifts, abilities, interests, aspects, loyalties, and solidarities. Created in the image of God, human beings in the Bible are anything but simple. They are musical, communal, religious, artistic, familial, charitable, scientific, literary, moral, athletic, fun, and funny. The robust anthropology found in the Bible depicts a creature that could never be fully defined, controlled, content, or nourished by the market or the state alone—thank God.

This perspective ties in well with Rev. Robert Sirico’s final chapter in his book, Defending the Free Market, where he criticizes the popular notion of homo economicus, from which plenty of bad economic policy and market decision-making has been generated:

Any man who was only economic man would be a lost soul. And any civilization that produced only homines economici to fill its markets, courts, legislative bodies, and other institutions would soon enough be a lost civilization. Familial love, voluntary dedication to philanthropy and faith, the creation of art and music would be at their most minimal level, and whole sectors of life would completely vanish. Focusing the whole of life on the acquisition of quantifiable goods does not bring true happiness or peace, as almost everyone knows. We all have material appetites, but we do not (pray God) always feed them…Human beings find ultimate fulfillment not in acquisition but in developing, sharing, and using their God-given creative capacities for good and giving themselves to others. (more…)

What is the role of the marketplace in the Kingdom of God and in the redemptive process of God’s mission? Join David Doty, Founder and Executive Director of Eden’s Bridge, for an AU Online lecture series to discuss those questions. The Building a Marketplace Theology course is scheduled to begin Tuesday, January 22, 2013 at 6:00pm EST.

David Doty will lead a discussion based largely on the book, Eden’s Bridge: The Marketplace in Creation and Mission, and material developed subsequent to its publication. The four online sessions will be held on Tuesdays and Thursdays from 6:00-7:00pm EST January 22 through January 31, 2013. Visit auonline.acton.org for more information or to register.

Blog author: mhornak
Friday, October 19, 2012
By

Is the “secular vs. sacred” worldview struggle just another first-world problem? Join us in a discussion of this topic in the AU Online series Freedom and Virtue in the Developed World. The first lecture of this AU Online series will be held on Tuesday October 23 at 6:30pm EDT. Don’t miss your chance to explore this important topic!

In the Freedom and Virtue in the Developed World series, Acton’s Director of Research, Dr. Samuel Gregg, will lead us through a theoretical and practical reflection of the far ranging economic, social, and political causes and impacts of the West’s identity crisis.

If you’re interested in participating but might not have the extra time in your schedule, don’t worry! Everyone who registers for an AU Online series will have access to recordings of the live online lectures to view at their convenience. Visit the AU Online website for more information or to register. For further questions about AU Online, please contact the AU Online team at auonline@acton.org.