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-Titulo Original : Common Sense Economics What Everyone Should Know About Wealth And Prosperity
-Fabricante :
St. Martins Press
-Descripcion Original:
Excerpt. © Reprinted by permission. All rights reserved. Common Sense EconomicsWhat Everyone Should Know About Wealth and ProsperityBy James D. Gwartney, Richard L. Stroup, Dwight R. Lee, Tawni H. Ferrarini, Joseph P. CalhounSt. Martins PressCopyright © 2016 James D. Gwartney, Richard L. Stroup, Dwight R. Lee, Tawni H. Ferrarini, and Joseph P. CalhounAll rights reserved.ISBN: 978-1-250-10694-0ContentsTITLE PAGE, COPYRIGHT NOTICE, DEDICATION, PREFACE, Part 1: Twelve Key Elements of Economics, Part 2: Seven Major Sources of Economic Progress, Part 3: Ten Key Elements of Economic Thinking About the Role of Government, Part 4: Twelve Key Elements of Practical Personal Finance, ACKNOWLEDGMENTS, DIGITAL ASSETS, SUPPLEMENTAL UNITS, AND WEBSITE, SUGGESTED ADDITIONAL READINGS, GLOSSARY, NOTES, INDEX, ABOUT THE AUTHORS, COPYRIGHT, CHAPTER 1PART 1Twelve Key Elements of EconomicsTWELVE KEY ELEMENTS OF ECONOMICS1. Incentives matter: Changes in benefits and costs will influence choices in a predictable manner.2. There is no such thing as a free lunch: Goods are scarce and therefore we have to make choices.3. Decisions are made at the margin: If we want to get the most out of our resources, options should be chosen only when the marginal benefits exceed the marginal cost.4. Trade promotes economic progress.5. Transaction costs are an obstacle to trade.6. Prices bring the choices of buyers and sellers into balance.7. Profits direct businesses toward productive activities that increase the value of resources, while losses direct them away from wasteful activities that reduce resource value.8. People earn income by providing others with things they value.9. Production of goods and services people value, not just jobs, provides the source of high living standards.10. Economic progress comes primarily through trade, investment, better ways of doing things, and sound economic institutions.11. The invisible hand of market prices directs buyers and sellers toward activities that promote the general welfare.12. Too often long-term consequences, or the secondary effects, of an action are ignored.IntroductionLife is about choices, and economics is about how incentives affect those choices and shape our lives. Choices about our education, how we spend and invest, what we do in the workplace, and many other personal decisions will influence our well-being and quality of life. Moreover, the choices we make as voters and citizens affect the laws or rules of the game, and these rules exert an enormous impact on our freedom and prosperity. To choose intelligently, both for ourselves and for society generally, we must understand some basic principles about how people choose, what motivates their actions, and how their actions influence their personal welfare and that of others. Thus, economics is about human decision-making, the analysis of the forces underlying choice, and the implications for how societies work.The economic way of thinking involves the integration of key concepts into your thought process. The following section presents twelve concepts that are crucial for the understanding of economies, and why some countries grow and achieve high income levels while others stagnate and remain poor. You will learn such things as the true meaning of costs, why prices matter, how trade furthers prosperity, and why production of things people value underpins our standard of living. In the subsequent parts of the book, these concepts will be used to address other vitally important topics.1. Incentives matter: Changes in benefits and costs will influence choices in a predictable manner.All of economics rests on one simple principle: Changes in incentives influence human behavior in predictable ways. Both monetary and nonmonetary factors influence incentives. If something becomes more costly, people will be less likely to choose it. Correspondingly, when the benefits derived from an option increase, people will be more likely to choose it. This simple
-Fabricante :
St. Martins Press
-Descripcion Original:
Excerpt. © Reprinted by permission. All rights reserved. Common Sense EconomicsWhat Everyone Should Know About Wealth and ProsperityBy James D. Gwartney, Richard L. Stroup, Dwight R. Lee, Tawni H. Ferrarini, Joseph P. CalhounSt. Martins PressCopyright © 2016 James D. Gwartney, Richard L. Stroup, Dwight R. Lee, Tawni H. Ferrarini, and Joseph P. CalhounAll rights reserved.ISBN: 978-1-250-10694-0ContentsTITLE PAGE, COPYRIGHT NOTICE, DEDICATION, PREFACE, Part 1: Twelve Key Elements of Economics, Part 2: Seven Major Sources of Economic Progress, Part 3: Ten Key Elements of Economic Thinking About the Role of Government, Part 4: Twelve Key Elements of Practical Personal Finance, ACKNOWLEDGMENTS, DIGITAL ASSETS, SUPPLEMENTAL UNITS, AND WEBSITE, SUGGESTED ADDITIONAL READINGS, GLOSSARY, NOTES, INDEX, ABOUT THE AUTHORS, COPYRIGHT, CHAPTER 1PART 1Twelve Key Elements of EconomicsTWELVE KEY ELEMENTS OF ECONOMICS1. Incentives matter: Changes in benefits and costs will influence choices in a predictable manner.2. There is no such thing as a free lunch: Goods are scarce and therefore we have to make choices.3. Decisions are made at the margin: If we want to get the most out of our resources, options should be chosen only when the marginal benefits exceed the marginal cost.4. Trade promotes economic progress.5. Transaction costs are an obstacle to trade.6. Prices bring the choices of buyers and sellers into balance.7. Profits direct businesses toward productive activities that increase the value of resources, while losses direct them away from wasteful activities that reduce resource value.8. People earn income by providing others with things they value.9. Production of goods and services people value, not just jobs, provides the source of high living standards.10. Economic progress comes primarily through trade, investment, better ways of doing things, and sound economic institutions.11. The invisible hand of market prices directs buyers and sellers toward activities that promote the general welfare.12. Too often long-term consequences, or the secondary effects, of an action are ignored.IntroductionLife is about choices, and economics is about how incentives affect those choices and shape our lives. Choices about our education, how we spend and invest, what we do in the workplace, and many other personal decisions will influence our well-being and quality of life. Moreover, the choices we make as voters and citizens affect the laws or rules of the game, and these rules exert an enormous impact on our freedom and prosperity. To choose intelligently, both for ourselves and for society generally, we must understand some basic principles about how people choose, what motivates their actions, and how their actions influence their personal welfare and that of others. Thus, economics is about human decision-making, the analysis of the forces underlying choice, and the implications for how societies work.The economic way of thinking involves the integration of key concepts into your thought process. The following section presents twelve concepts that are crucial for the understanding of economies, and why some countries grow and achieve high income levels while others stagnate and remain poor. You will learn such things as the true meaning of costs, why prices matter, how trade furthers prosperity, and why production of things people value underpins our standard of living. In the subsequent parts of the book, these concepts will be used to address other vitally important topics.1. Incentives matter: Changes in benefits and costs will influence choices in a predictable manner.All of economics rests on one simple principle: Changes in incentives influence human behavior in predictable ways. Both monetary and nonmonetary factors influence incentives. If something becomes more costly, people will be less likely to choose it. Correspondingly, when the benefits derived from an option increase, people will be more likely to choose it. This simple
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