Economics – A Definition
ByJust a heads up: I am going to use this blog to increase my own vocabulary, and maybe yours (if you are as limited as me). Considering the topic of economics came up, I figured I would look it up. Just a simple dictionary definition, but good to check out nonetheless.
economics |ˌekəˈnämiks; ˌēkə-|
plural noun [often treated as sing. ]
the branch of knowledge concerned with the production, consumption, and transfer of wealth.
• the condition of a region or group as regards material prosperity : he is responsible for the island’s modest economics.
ORIGIN late 16th cent.(denoting the science of household management): from economic + the plural suffix -s, originally on the pattern of Greek ta oikonomika (plural), the name of a treatise by Aristotle. Current senses date from the late 18th cent.
16 Comments
April 25th, 2009 at 7:24 am
Sounds to me like you need to turn your Mac’s screensaver to “Word of the Day” (check it out, it really is there). It brings up new words for you to read and defines those words as well.
April 25th, 2009 at 7:57 am
I couldn’t find it in there. Is it only on leopard? I did find a widget though. I am going to use that. Thanks my personal Mac Genius and webmaster!
April 25th, 2009 at 8:54 am
He is actually the “WebMasta”…pronouce it right!
April 25th, 2009 at 9:11 am
Yes, yes, I did spell that wrong. However, you can have no doubt that I pronounced it properly with emphasis while writing in my comment above!
April 25th, 2009 at 4:35 pm
Well, if you get an iphone, there is an app that will cost you around 99 cents called istudy: micro economics. LOL! Also word of the day, turkish lessons, MCAT study help… basically anything you want to learn available as long as your phone is within reach. Oh, and entire books for download, and a kindle app, so you can read on your kindle and your iphone. I’ll stop now.
April 26th, 2009 at 2:49 pm
I prefer to define economics as “the study of choices of how to efficiently allocate scarce resources” – basically our entire lives are a study in economics. When you think of it, the laws of economics govern how all living creatures interact, not just humans. To a certain extent, everything is scarce. You only have so much time in a day, only so much time on the planet. What will you do with it? Only so much money to spend. Only so much land to farm, water to drink, fuel to burn, etc. How best to use these precious resources? How different people value scarce resources facilitates trade and makes possible the accumulation of wealth. Can you do it in a way that makes both sides win? Never took an economics course until last year. Pretty eye opening!
April 27th, 2009 at 9:39 am
Hey Steve,
Good to have you here. I believe the book by Sowell I referred to had a very similar definition of economics. I agree with you that the term itself can be applied to many spheres. In fact, it seems pretty helpful to do so.
April 27th, 2009 at 10:14 am
There are a lot of books that attempt to apply economics to every day “stuff.” Freankanomics is probably the most popular right now. Levitt and Dubner (and some contributors) put this idea forth in their blog (multiple times every day) as well. Robert Frank also has a great book on answering everyday questions with economics, as does Gary Becker.
The only thing I warn against in looking at everyday application is the assumption that there are two options (i.e. “both sides”). In almost every case, consumers and producers are represented, but many novices forget to account for externalities, taxes/government, and regulation/government. As I mentioned last week, pareto improvement is nearly impossible and pareto efficiency is a dream. Generally, in the US especially, we operate under Kaldor-Hicks efficiency or improvements, where those who lose out are (supposedly) compensated for their loss (oversimplified). Kaldor-Hicks is generally considered the basis of benefit-cost analysis. However, it has some problems in application (generally related to utility).
That being said– life is one big trade-off experiment and interesting to see economics and a variety of economic theories applied to every day situations. Personally, I LOVE that non-economists are willing to sit down and talk about it! (That’s you Joe!)
April 27th, 2009 at 10:16 am
Oh, I forgot! I found this link and wanted to share. These guys are the “fathers” of economics, so if you want to get nerdy, check them out.
http://www.investopedia.com/articles/07/economists.asp
April 27th, 2009 at 3:29 pm
Yes, yes, I am certainly in the non-economists category. Actually, I may be even further out than that. Though I did score an 11 on that fancy test you sent along (and I should have had a 13 I believe!). I need to check out some of those books.
I totally agree with you on the importance of accounting for externalities. Not to trumpet him as if he is Scripture, but I didn’t really understand that until reading Sowell. Understanding incentives for the various people involved in the market (including politicians, who, it seems, oftentimes have personal incentives that are diametrically opposed to the good of the market and the people, right?) has helped to give me new eyes. Or maybe I should just say eyes, b/c I was more or less ignorant before (remember Anup?).
I have to take some time to think about the prospect of getting nerdy. Not sure if I want to take that step of commitment yet (though yes, some might say I am already there).
Na…I am going to check out that site as well. Thanks as always Maria. You definitely expose me to some new stuff. I give thanks for that.
April 27th, 2009 at 4:25 pm
That fancy test was for high schoolers. OK, AP high school economics. LOL!
Externalities also are especially important when considering the environment, because the environment is challenging to value. There are methods out there, each with strengths and weaknesses, but if we kill all of the polar bears, there never will be one again. How do you value that? How do you value a lost mother due to cancer associated with pollutions? How do you value the impacts to women versus men– especially if the woman is a housewife. These things are questions that are hard to answer and hard to value. Human life, environment, etc. are valued differently by different people. Multi-variable optimization is complex and hard to do.
Don’t get stuck on economics for my sake. I come here to read and laugh. You are entertaining! This is my bread and butter right now though. Or rather, provides my health insurance at a reasonable price. LOL!
April 28th, 2009 at 12:43 pm
Thanks for making us feel bad! Though if I had taken that test in High School, I would have certainly gotten a sweet zero.
Have not thought so much on the environmental factors. I can see how that would prove difficult b/c of people’s differing priorities. One more reason why I can’t wait until the New Earth, b/c we will all see clearly then!
I don’t mind getting ‘stuck’ on a certain topic for a bit. Helps me learn. So I may keep the questions coming. Just a warning!
April 28th, 2009 at 3:52 pm
Ask any time and anything. I might not know the answer, but overall you are remindin me that the foundations are important to remember and there are many variations in the science and art of economics.
I like environmental work most because it is not cut and dry, black and white… The challenge of it all is exciting. I have the pleasure to work in a water resource agency at a time when water is a hot button topic. Facinating times.
April 28th, 2009 at 4:00 pm
Oh, and I need to read more on the New Earth, because while I have a vague notion of it, I do not know the details well enough to coverse intellegently. Maybe you can do a post on that???
April 29th, 2009 at 7:04 am
I think you may have just given me an idea for my first series! Thank you for that.
After thinking about a post, I had a week’s worth in 5 minutes. Maybe next week. It’s such wonderful news.
April 29th, 2009 at 7:46 am
You’re welcome. I look forward to your series.