Your Life Ebook
The principal topic of this book is an important branch of mathematics called mathematical analysis. This includes differential and integral calculus and their extensions. Calculus was developed at the end of the seventeenth century by Newton and Leibniz. Their discoveries completely transformed mathematics, physics, and the engineering sciences, giving them all new life. In similar fashion, the introduction of calculus into economics has radically changed the way in which economists analyze the world around them. Calculus is now employed in many different areas of economics for example, it is used to study the effects of relative price changes on demand, the effects of a change in the price or availability of an essential input such as oil on the production process, the consequences of population growth for the economy, and the extent to which a tax on energy use might reduce carbon dioxide emissions.
You've no doubt encountered many models in your life. As a child, you played with model trains, model planes, or model people dolls. In a high school science course, you probably saw a model of an atom one of those plastic and wire contraptions with red, blue, and green balls representing protons, neutrons, and electrons. You may have also seen architects' cardboard models of buildings. These are physical models, three-dimensional replicas that you can pick up and hold. Economic models, on the other hand, are built not with cardboard, plastic, or metal but with words, diagrams, and mathematical statements.
Order for 'progress' to make any evaluative sense, there has to be some sort of progression, an accumulation of knowledge handed down from generation to generation rather than the perennial replacement of those who had in turn replaced their progenitors. It is in this loose sense that progress in economics is closer to the sciences than to the arts or humanities. It may be instructive to consider the starkly different situation in philosophy in order to dispel any lingering doubts about the status of economics. The history of philosophical thought may be said to exhibit strong discontinuities, that is to say, progress in philosophy seems to consider itself as a complete break with the past, as a new beginning or clean slate, involving a repudiation, even negation, of the past, including all the numerous earlier new beginnings which at the time had also been held to provide the subject with secure foundation for years to come. It seems to be a mark of the really great philosopher to...
If God is not, whether you live your life piously or sinfully is immaterial. But suppose that God is. Then if you bet against the existence of God by refusing to live a life of piety and sacraments you run the risk of eternal damnation the winner of the bet that God exists has the possibility of salvation. As salvation is clearly preferable to eternal damnation, the correct decision is to act on the basis that God is.
The first two duties are clear and straightforward the protection of individuals in the society from coercion whether it comes from outside or from their fellow citizens. Unless there is such protection, we are not really free to choose. The armed robber's Your money or your life offers me a choice, but no one would describe it as a free choice or the subsequent exchange as voluntary.
Traditional agriculture tends to be self-sufficient because it has to be. To become dependent on a number of external suppliers in poor countries is to risk losses when they fail you. And losses in this context means not only losing crops or livestock but losing your life as well.
Let me offer just one more striking example of formalism in modern economics, namely the so-called 'new economic geography'. Its leading advocate, Paul Krugman (1991, 1994, 1996), makes great play of the extent to which mathematical models incorporating the concepts of imperfect competition and increasing returns to scale have breathed new life into the old, defunct spatial economics of Thunen, Weber, Christaller and Losch. His technique is to write down non-linear general equilibrium equations expressing various pull and push aspects of local advantage and then solving them by using Fourier expansions different locational outcomes are then simulated by altering the key parameters in the equations. But apart from oblique references to illustrative cases, such as Silicon Valley or the Cambridge area in Massachusetts, Krugman provides no empirical applications of the new approach and it is difficult to see how the new economic geography illuminates the locational aspects of economic...
Seeing economics as a discourse and exploring its rhetorical dimensions, to which their works inspire, seems to bring new life to the conversation about economics. It breaks the grip that a narrow logic had on methodological thinking and stimulates one to see beyond epistemology (the points of departure in conventional methodology), and to watch the behaviour of economists more directly.
Although learning definitions is not always the most exciting of pursuits, it is important to read carefully and understand the concepts presented in this chapter. Not only are they continually used throughout the remainder of this text, but a firm grasp of these terms will give you a clearer understanding of the role that interest rates play in your life as well as in the general economy.
Of course there are other ways of distinguishing between the basic needs and ultimate ends of life each culture must define its own. It is thus important to distinguish between needs and wants. A want is a wish, craving or desire for luxuries that extend beyond our basic life needs or sufficiency. In their book Your Money or Your Life, Joe Dominguez and Vicki Robin describe the relationships between the money we spend on meeting our basic life needs and our level of fulfillment. They argue that people fall somewhere on a spectrum of economic well-being from survival mode (subsistence) through a comfort zone (sufficiency of basic needs) to the zone of wants, luxuries and a 3. The final 10 of well-being is attributed to your life circumstances, including your income, material possessions, marital status, the weather and where you live (your neighborhood)10
In the previous section we discussed the subjectivist method of mind constructs without acknowledging the two different forms that method can take. The first form is most closely related to the traditional subjective theory of value and we shall call it static subjectivism. In this case, the mind is viewed as a passive filter through which the data of decision-making are perceived. To the extent that this filter can be understood, the whole process of decision-making is perfectly determinate. The second form, on the other hand, views the mind as an active, creative entity in which decision-making bears no determinate relationship to what went before. Here, decision-making is literally a cut, a new beginning (Buchanan, 1982a). This form of subjectivism we shall call dynamic subjectivism.
Tariffs are the oldest form of trade policy and have traditionally been used as a source of government income. Until the introduction of the income tax, for instance, the U.S. government raised most of its revenue from tariffs. Their true purpose, however, has usually been not only to provide revenue but to protect particular domestic sectors. In the early nineteenth century the United Kingdom used tariffs (the famous Corn Laws) to protect its agriculture from import competition. In the late nineteenth century both Germany and the United States protected their new industrial sectors by imposing tariffs on imports of manufactured goods. The importance of tariffs has declined in modern times, because modern governments usually prefer to protect domestic industries through a variety of nontariff barriers, such as import quotas (limitations on the quantity of imports) and export restraints (limitations on the quantity of exports usually imposed by the export
Arguably, American liberals should break through iconoclasm to make a new beginning, even as neo-liberals did four decades ago. In doing so they must better explicate their own intellectual system from theoretical top to applied political bottom, thereby dismissing antagonists, as Sch n and Rein describe, by using their analyses to cast doubt upon the competing metacul-tural frame. To this end, esoteric research must be translated into practical applications. An example is behavioural economics. Recently (2000), Princeton psychologist Daniel Kahneman won the Nobel Prize for pioneering research in this emergent subfield. Behaviourists describe how individuals often act irrationally, thereby supporting the case that government may need to play a role in guiding markets and individuals in areas where failure
What are the most important values in your life What makes life Q3. What is going well in your life right now Q4. What is not going well in your life right now Q5. What areas of your life would you like to improve today Q6. Overall, how would you rate your level of happiness
From its very beginning, of course, the Austrian School was identified as being 'subjectivist'. Whereas the classical theory of value had sought explanations in terms of the objective conditions surrounding physical production, the Austrians emphasized the market processes initiated by the actions of valuing, choosing, consumers. But explorations of subjectivism in recent years have drawn our attention to several quite different levels at which individual choice may be discussed. In particular two levels have been identified one terminology identifies them as (a) 'static subjectivism' and (b) 'dynamic subjectivism' (Buchanan 1982 O'Driscoll and Rizzo 1985 Chs 2, 3 Ebeling unpublished). (After the late Professor Machlup's delightful survey of the numerous different uses made in economic terminology of the static-dynamic distinction, it is of course wholly unnecessary to spell out which of these two levels is to be considered the more profound' (Machlup 1963). There are some differences...
The idea of a national Genuine Wealth Index or a national Genuine Progress Index has taken on new life through the Canadian Index of Well-being (CIW). The CIW, which has been sponsored by the Atkinson Foundation of Toronto (Joseph Atkinson was the publisher of the Toronto Star newspaper), is an effort by some of the world's experts in measures of sustainability, well-being and quality of life, including Ronald Colman (GPI Atlantic), myself, and many others with support from Statistics Canada and the Honourable Roy J. Romanow, to tell Canadians how we are doing as a country and to measure definitively what matters most to us.20
There is no single right answer to that question. It depends on the individual person's risk tolerance. Let's say you saved up enough money to live out your life in relative comfort but without the ability to make extravagant expenditures. I come along and offer to give you ten-to-one odds on the flip of a coin. The only catch is that you have to bet your entire net worth. That bet has a tremendous edge, but it is probably a bet that you wouldn't want to make, because the value of what you can gain, even though it is a much larger sum of money, is much less than the value of what you could lose. If, however, you are just out of college with 10,000 in savings and your whole earnings career ahead of you, you would probably want to take the same bet. As a fund manager, the correct answer as to how
Your Credit Score Like your shadow, your credit score, or credit rating, follows you throughout your life. It's a number from 300 to 900 that shows how responsible you've been with your finances recently and in the past. The higher your score is, the more likely you are to get credit and a low interest rate.
Making Generalizations Historically, expansions in money supply have set off inflation. Something similar might have happened to you. Identify a period in your life when you had a little more money than usual. How did you spend the extra cash Were prices as important to you then as they were at times when you did not have as much to spend Why do prices tend to increase faster when more money is available
However, in April 1955 the head of Bomber Command, Sir George Mills, argued that deterrence would be better achieved by threatening centres of population and administration rather than military targets. As a result of his initiative, Bomber Command was directed to plan on the basis of destroying the enemy's will to fight in the shortest possible time. Combined planning with the US Strategic Air Command from 1957-8 led to a shift back to military targets, including bomber bases and IRBM sites, although the British Global War Studies Committee reported in March 1959 that a purely counter-force strategy was no longer credible, as it was unlikely that either side could knock out all of the other's nuclear forces. From 1958 British strategic plans had two separate lists of targets, one for joint action with the United States and one for unilateral action even so, whereas the 1958 unilateral plan targeted forty cities, in 1962 there were only fifteen on the list. Baylis concludes that there...
On any given day, you are probably exposed to hundreds of advertisements. The morning newspaper announces special sales on clothes, computers, and paper towels. On the way to class, you might see numerous billboards competing for your attention, suggesting that you stay at the Holiday Inn, eat at Burger King, or organize your life with a Palm Pilot. You will likely spend more time watching advertisements for breakfast cereals on television than you will spend eating them. And as you search for information on the World Wide Web, ads for home shopping services, webzines, and Internet access providers flash before your eyes. No doubt about it Advertising is everywhere in the economy.
All these reasons, and many more, make good sense. Still, as we have come to realize, there is one overriding reason for learning the basic lessons of economics All your life from cradle to grave and beyond you will run up against the brutal truths of economics. As a voter, you will make decisions on issues that cannot be understood until you have mastered the rudiments of this subject. Without a study of economics, you cannot be fully informed about international trade, the economic impact of the Internet, or the trade-off between inflation and unemployment. Choosing your life's occupation is the most important economic decision you will make. Your future depends not only on your own abilities but also on how economic forces beyond your control affect your wages. Also, your knowledge of economics may help you invest the nest egg you save from your earnings. Of course, studying economics cannot make you a genius. But without economics the dice of life are loaded against you.
We began this chapter by noting that perfect competitors never advertise and monopolies advertise relatively little. But advertising is almost always found under monopolistic competition and very often in oligopoly. Why All monopolistic competitors, and many oligopolists, produce differentiated products. In these types of markets, the firm gains customers by convincing them that its product is different and better in some way than that of its competitors. Advertising, whether it merely informs customers about the product ( The new Toyota Corolla gets 45 miles per gallon on the highway ) or attempts to influence them more subtly and psychologically ( Our exotic perfume will fill your life with mystery and intrigue ), is one way to sharply differentiate a product in the minds of consumers. Since other firms will take advantage of the opportunity to advertise, any firm that doesn't advertise will be lost in the shuffle. In this section, we use the tools we've learned in this chapter to...
Another way of reconfiguring economics as a natural science - also related to the issue of how we understand the mind - derives from the work of Herbert Simon. Simon is best known for developing the idea that human rationality involves satisficing behavior and a bounded rationality in which individuals make use of limited information and a limited computational capacity. But Simon's thinking about bounded rationality and human beings' reliance on rules of thumb and heuristics in decision-making also served as the basis for his later thinking about how to model artificial intelligence systems (Simon, 1957 1945 cf., Sent, 1997). Computers, he demonstrated, could be designed to employ the same rules of thumb and heuristics as are generally observed in human decision-making. But this implied that if computers are information-processing systems, then the human mind could also be conceived as essentially an information-processing system. Simon's original work in this regard long antedated...
Sometime in your life, you have probably been told, Don't cry over spilt milk, or Let bygones be bygones. These adages hold a deep truth about rational decisionmaking. Economists say that a cost is a sunk cost when it has already been committed and cannot be recovered. In a sense, a sunk cost is the opposite of an opportunity cost An opportunity cost is what you have to give up if you choose to
The topic of money, banking, and financial markets is an exciting field that directly affects your life interest rates influence earnings on your savings and the payments on loans you may seek on a car or a house, and monetary policy may affect your job prospects and the prices of goods in the future. Your study of money, banking, and financial markets will introduce you to many of the controversies about the conduct of economic policy that are currently the subject of hot debate in the political arena and will help you gain a clearer understanding of economic phenomena you frequently hear about in the news media. The knowledge you gain will stay with you and benefit you long after the course is done.
Economists define money (also referred to as the money supply) as anything that is generally accepted in payment for goods or services or in the repayment of debts. Currency, consisting of dollar bills and coins, clearly fits this definition and is one type of money. When most people talk about money, they're talking about currency (paper money and coins). If, for example, someone comes up to you and says, Your money or your life, you should quickly hand over all your currency rather than ask, What exactly do you mean by 'money'
You will now offer some amount of the 10.26 to Player 2. Take as much or as little time as you like to decide. Once you have decided on your offer, write it in the appropriate place on the next page. We will compare your offer to the appropriate Player 2's recorded demand. If your pair has reached an agreement, we will pay each of you the agreed-upon amounts. If your pair has not reached an agreement, we will pay each of you nothing. At no time will Player 2 know your identity, nor will you know his.
Straightforward empirical application the model could have been used for, namely to conduct a crucial empirical test, was conspicuous by its absence during the quarter-century that followed its publication. It was not until the controversy between the Keynesian orthodoxy (as it had become in the meantime) and the monetarists under Friedman, in the 1960s and 1970s, that the IS-LM model was used in attempts to settle the theoretical controversy by empirical means. This started with Friedman's reformulation of the old quantity theory of money into a theory of money demand (in Friedman, 1956). What he had to do further in order to challenge the dominant Keynesian theory on its own ground was to formulate a monetarist version of the theory of income determination. Though he did not complete this exercise, he succeeded in diverting the argument to the question of the stability of the money demand function.21 Friedman shifted the controversy into the empirical domain by asserting that this...
A developer has acquired the large piece of vacant land across the street from your house and plans to build a large shopping mall on the property. How might you benefit from the mall How might it negatively impact your life Read Chapter 7 to learn about market structures and economic growth.
What's your story of Genuine Wealth What are you thankful for Are you living your life with an attitude of gratitude for the abundance of genuine wealth that you have What have you to celebrate today What changes would you like to make in your life, now or tomorrow If we are going to live authentic and genuine lives, each one of us must get in touch with our inner teacher. Who are you Why are you here What are your dreams If we begin to live more authentic lives, true to our inner nature and in a way that our souls and hearts are glad, then we can be more fully available to others in service. Most importantly we begin to enjoy the happiness that comes in both giving and receiving and appreciating the abundance of our common wealth.
Economists do not even like the question 'what is happiness '. To them happiness is not a concept clearly distinct from pleasure, satisfaction or welfare. Ng (1997) defines happiness as 'welfare', for Oswald (1997) happiness means 'pleasure' or 'satisfaction', and Easterlin, is even too explicit 'I use the terms happiness, subjective well-being, satisfaction, utility, well-being, and welfare interchangeably' (2001, p. 465). To Frey and Stutzer (2005) 'Happiness research in economics takes reported subjective well-being as a proxy measure for utility' (p. 116). The sociologist Ruut Veenhoven 'use s the terms happiness or life satisfaction for comprehensive judgment' (2005, p. 245, original emphasis). Happiness, by economists, is not generally defined, but empirically measured, on the basis of the answers to questionnaires that ask people 'how happy are you '. The WVS questionnaires ask people about both happiness ('how happy are you ') and life satisfaction ('how satisfied are you with...
Ometime in your life, you will have to deal with the economy's financial If you reflect for a moment on the many financial decisions you will make during your life, you will see two related elements in almost all of them time and risk. As we saw in the preceding two chapters, the financial system coordinates the economy's swing and investment, which in Mm are cTuci.il determinants of economic growth. Most fundamentally, the financial system concerns decisions and actions we undertake today that will affect our lives In the future. But the future is unknown. When a person decides to allocate some saving, or a firm decides to undertake an investment, the decision is based on a guess about the likely result. The actual result, however, could end up being very different from what was expected.
Almost every day of your life you come into contact with some kind of business. Businesses can be organized in a number of ways. Some are corporations, while others are small companies, owned and operated by one individual or by a few people. The small business remains the main economic force in many American communities Small businesses employ the bulk of the workers In New Orleans and spell the future of the area economy, a local economist said In his latest study, Timothy Ryan, dean of the University of New Orleans College of Business, found that over the past decade, there had been a 36 percent increase in the number of businesses that employ fewer than 100 employees. The number of firms with more than 100 employees
That very little is written or taught about how money is created in our modern economies yet it is the most important driver of human behavior. One of my favorite authorities is Vicki Robin's and Joe Dominguez's book Your Money or Your Life which provides an important plain-language approach to understanding money and our relationships with it. The authors remind us we spend much of our life trading our life energy or time in exchange for money. Ironically, however, while time is genuinely real and limited (we will all die), money on the other hand is an illusion in that has no basis in real wealth. Robin and Dominguez offer a simple calculation to determine how many minutes and hours you expend each day, month or year to earn an income this includes adding up the value of unpaid hours spent related to working, including the time spent dressing and getting ready to work, time commuting, time worrying and stressing about deadlines and time recovering from a stressful day and commute...
Deliberations which could be done in order to optimize the result of a decision, only the cost eventually incurred by an optimizer who chooses to pay for means to improve the quality of a decision which are offered for sale - such as the eventual hiring of the services of counsellors available on the market -should be included in what counts as a cost when it comes to discussing the optimality of a decision. The estimated psychological cost of the extra deliberation which might have been made to reach a theoretical optimal point should not be considered when establishing this economically optimal point.9 By proceeding in this way, the notion of economic optimization will find new life because it will no longer be true that any adopted position will be said to be optimal thanks to the accounting of these avoided psychological costs. Naturally, it would still be possible to say that it is preferable for any reason to adopt a position which is not optimal from the point of view of...
Of the whole field of the social sciences as well as some knowledge of history and philosophy. Of course real competence in some particular field comes first. Unless you really know your economics or whatever your special field is, you will be simply a fraud. But if you know only economics and nothing else, you will be a bane to mankind, good, perhaps, for writing articles for other economists to read, but for nothing else. If you have only three years7 this double task of acquiring technical competence in a narrow field plus a general education is a formidable task. But you will find it will for long be the only opportunity you have to collect a great deal of varied knowledge whose meaning and significance you will recognize only later. And if you mean to make the academic study of one of the subjects your life-work, it is even more important that during your undergraduate years you let your interests range rather widely. Any successful original work on one of the social sciences...
Despite the painful facts of history, the idea persists in many places that political decisions are more moral than decisions made through the marketplace. Writers for the San Francisco Chronicle referred to how amoral the marketplace can be when explaining why the water supply owned by the city of Stockton could not be entrusted to private enterprise. Water is too life-sustaining a commodity to go into the marketplace with, they quoted the mayor of Stockton as saying. Yet, every day, life-sustaining food is supplied through private enterprises, as are many life-saving medicines. The net result is that people in most market economies are less likely to suffer from malnutrition than from obesity-just the opposite of what happens in countries where political authorities control food-and most new life-saving medicines are developed in market economies, notably that of the United States. As for privately run water systems, they already exist in Argentina.
Tampering with the significance level always reduces the risk of committing one type of error at the cost of increasing the risk of committing the other type of error. Thus you cannot reduce both risks together. In the face of this trade-off, the selection of a significance level is a compromise that reflects the costs incurred by either type of error. In our example, committing a Type II error costs you another five dollars. A Type I error costs you your life. So it certainly makes sense to set the significance level very, very low, to reduce the risk of committing a Type I error towards zero. When economists test their theories they routinely choose 5 significance levels. Occasionally, significance levels of 10 or 1 are also applied.
Where Can I Get Power Quadrant System
Power Quadrant System is not for free and currently there is no free download offered by the author.