General Knowledge of Economics

General Economics day 1, the topic is the desire to regulate and the consequences of regulation.

For example, in the social market, if some products become more expensive and the poor can’t afford them, the government will try to regulate such products so that more of them can be produced, and finally the poor can have such products.

The economics of such regulation are wrong, and it is counterproductive.

Because when a lot of things are affordable to the poor, I personally think that’s a good thing, but the way economics works is that if a lot of poor people are able to afford these things, then you have the middleman making the difference, the scalper.

As a result, the people who produce the goods do not gain more income, but the people who consume the goods pay more for the same goods. If the producers do not actually get the profits, then the producers will be less likely to keep expanding their products and making their products cheaper with the money they earn.

It may be thought that value determines price, and the higher the value of an item, the higher its market price.

However, the ideas and theories of the general history of economics overturned my cognition. This is what it says: price determines value. ** According to the market price, how much would this item sell for? It determines how much it costs the producer to produce the good.

You might be surprised to see this, but maybe that’s the reality.

demand

This theme revolves around the lack of things to elaborate. Scarcity means scarcity.

** Society should allocate its resources according to its needs, no matter what. ** This way is more reasonable. Like a guy lying in an ambulance. A woman who takes her kids to ballet school would rather pay a hefty transportation fee. Because right now. The need for an open road is what this patient needs more.

Road congestion

The life of modern people is much better than before. More and more, resulting in traffic jams on the road, has become a common occurrence. What is the government doing to solve this problem? ** will license plate to do a limit, with the way to let everyone have the opportunity to obtain license plate. It makes no economic sense. Why? From the point of view of this book, traffic jam is an existing problem and should be solved according to the current problem, rather than considering whether there will be traffic jam in the future or whether there will be more traffic jam in the future. In this way, there is no way to solve the current traffic jam problem.

The problem at the moment is not enough stuff. What do you mean the book doesn’t tell enough? Is scarce.

Solving the above problems can raise the price of cars, and the second is to raise the cost of expressways.

This way, the resources can be made available to those who really need them. Can be a good solution to this problem. But in fact, for me personally, I do not expect to solve the current problem in this way.

Are we all loss-averse, or do we not expect to give more than we did before in return for the same treatment?

An office worker wants a car to take his wife to work, send his children to school, and finally drive himself to work. At this time, it is very necessary for him to have a car license plate. This is his demand.

He is richer than a man before him. I already have two cars, two plates, and now I want to shake another plate, so that I can save a plate for my kid who is about to graduate from college, so that he can have his own car and drive it to meet girls.

It is quite unreasonable to apply the above situation to the current license plate lottery, since the demand for office workers is obviously greater than the above women. But they both have almost equal odds of winning the lottery. So the economics of such regulation really make no sense.

The train ticket

I don’t agree with the example of train tickets mentioned in the book. The book says, why is it so difficult to buy train tickets during the Spring Festival holiday every year, and it is also extremely crowded to get on the train? The reason is that train tickets are so cheap.

The solution is to raise the price of train tickets again and again. If there are still many people buying them, they will continue to increase until most people can’t afford them. At this time, buying train tickets will not be hard to get, let alone there will be no such role as scalpers.

At that time, many people are not willing to buy train tickets to travel during holidays or Chinese New Year. Why is it expensive?

The book says you’d rather use money to solve such problems than yours. Favors or other means to get such train tickets would rather use money to solve the problem. The greater the demand, the higher the price.

Although I don’t agree with all of the ideas in the book, I think there are some points that are preferable.

Now a lot of people like free of charge, for example, feel free, but you carefully to see, hard to find free, you are thinking he can save their own time, save their money, in fact, however, on the contrary, * * free will let you spend more time to find useful information, because many things are not value free, you’d be hard pressed to find what you need. Spend time not to achieve their goals, and finally make a mess of the mood. If you choose to pay at this time, you can get what you want immediately and solve your current problem immediately. Why not?

There are many situations in life where you can spend money instead of giving away your valuable time. Unless you don’t think your time is worth the money.

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Well, that’s all for today’s little notes and output. Thoughts on the above. And text, if you also have a trace of the idea, please. Comments We communicate together, discuss together, to become a better self.