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Mason - ECON 103 - Lecture 5, Menger Chapter 2 - Class Notes

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Mason - ECON 103 - Lecture 5, Menger Chapter 2 - Class Notes

School: George Mason University
Department: Economics
Course: Microeconomic Principles
Professor: Donald Boudreaux
Term: Fall 2018
Tags:
Name: Lecture 5, Menger Chapter 2
Description: Menger Book: Chapter Two - Economy and Economic Goods Humans have unlimited needs, but not for a specific, particular thing. If one need is satisfied, another need will come next. Human requiremen
Uploaded: 09/19/2018
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background image Menger Book: Chapter Two - Economy and Economic Goods Humans have unlimited needs, but not for a specific, particular thing. If one need is satisfied, another need will  come next. Human requirements = needs  Lecture 5, Menger Chapter 2 Wednesday, September 12, 2018 3:44 PM
background image have unlimited needs, but not for a specific, particular thing. If one need is satisfied, another need will 
background image requirements = needs  There is only three mathematical possibilities that we know:  1) Human needs are
greater
than available
quantity (the world of scarcity, economic goods price).  2)  What happens if human needs are less than available quantities? These are called free goods; non-economic goods. 3) Human needs are exactly equal to what is available (transition). What puts something in one of the three possibilities has nothing to do with intrinsic goods. It is all subjective  and how the human mind relates to things that puts it into one of these 3 categories. Categories can 
change
Crude oil used to have neg prices, then gained value for kerosene to use in lamps instead of whale oil, gasoline  was still useless and had neg prices. Then cars were created. Similar situation w/ timber. Water in the 
arid west when there would be droughts for 5
years, then lots of water for 5 years. Sunlight is free in the AM, scarce in the PM, air (lack of cold air in  the summer vice versa in winter), garbage. *a unit is subjective, a choice maker decides what the unit is depending on their need The mind will appraise all the units in the water as if they serve no need, not just the unused portion *If a good has a price, it is scarce, even if it’s in a surplus. A surplus is only when the price is zero. Shortages and surpluses are  always price phenomenon and scarcity is a general phenomenon
background image economic goods. puts something in one of the three possibilities has nothing to do with intrinsic goods. It is all subjective  and how the human mind relates to things that puts it into one of these 3 categories. Categories can  oil used to have neg prices, then gained value for kerosene to use in lamps instead of whale oil, gasoline  was still useless and had neg prices. Then cars were created. Similar situation w/ timber. Water in the  years, then lots of water for 5 years. Sunlight is free in the AM, scarce in the PM, air (lack of cold air in  The mind will appraise all the units in the water as if they serve no need, not just the unused portion it is scarce, even if it’s in a surplus. A surplus is only when the price is zero. Shortages and surpluses are 

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School: George Mason University
Department: Economics
Course: Microeconomic Principles
Professor: Donald Boudreaux
Term: Fall 2018
Tags:
Name: Lecture 5, Menger Chapter 2
Description: Menger Book: Chapter Two - Economy and Economic Goods Humans have unlimited needs, but not for a specific, particular thing. If one need is satisfied, another need will come next. Human requiremen
Uploaded: 09/19/2018
18 Pages 108 Views 86 Unlocks
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  • Notes, Study Guides, Flashcards + More!
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