Government and Economics (Intro to economics)

Is there a way to ensure that there will never be another traffic fatality? How?

Yes, we can crush all cars, close all roads, and force everyone to walk.

What is the economic cost of watching this Crash Course video? What is the definition of this cost?

You could be watching other videos on YouTube. This is the opportunity cost: whatever you give up to do something.

What could you be doing rather than going to school? Would this be a beneficial opportunity cost?

You could skip, you could drop out, and you could move to a country that doesn't have compulsory education. The costs would outweigh the benefits, this would be a poor return of opportunity cost.

Why are individuals, businesses, and countries forced to weigh the benefits and costs of their decisions and make choices?

Because they can't have everything.

Why can't the United States spend an infinite amount on consumer goods and weapons?

Because we don't have an infinite amount of workers, farms, factories, and raw materials (scarcity).

How could we easily decrease the number of people convicted of murder?

Decriminalize murder.

How do economists suggest healthcare be improved?

Instead of spending more money, make sure insurers, doctors, hospitals, and patients have incentives to produce the most effective care possible at the lowest cost possible.

How has this new form of incentive changed post-secondary schools?

It has increased graduation rates by shifting money from marketing budgets, to programs to help students do better.

How could you guarantee to end the unethical treatment of all elephants?

Kill all of the elephants.

How does the government, not just businesses, provide services for people?

Security, laws, roads, and traffic tickets are all thanks to the government.

How do many non-economists believe healthcare can be improved?

Spend more money.

What is economics? Provide examples.

Economics is The study of people and choices. Ex: An 18 year old deciding to work or go to college and how it impacts future income. Ex: A company deciding whether to produce smartphones or tablets based on what consumers want. Ex: The government deciding to increase spending during times of recession.

What is the second important assumption about economics?

Everything has a cost?

How much does the U.S. spend already, compared to other countries, on healthcare? How does this spending relate to outcomes?

The U.S. already spends twice as much per person as other rich countries, and in many cases gets worse outcomes.

Why is anyone viewing this video pro-business?

The computer you are watching on was created because of capitalism and the private sector.

During French colonial rule of Vietnam, why did the incentive to kill rats backfire on authorities?

For every rat tail you turned in you got paid and to make as much money as possible, rat-catchers released the tailless rats so they could breed and make more rats and this actually increased the rat population.

Why are each of the three previous solutions absurd?

The cost clearly outweighs the benefit for each.

Why is John Green, the founder of the Crash Course YouTube channel, not teaching the economics series?

He's an entrepreneur who writes books, runs websites, and creates movies. He can't do everything he wants to do. He looked at the costs and benefits andin the end decided to spend more time writing books.

What are incentives?

A set of external (rather than intrinsic) motivators that explain people's choices.

How many people die per year in car accidents in the United States?

About 30,000 people.

What isn't the main focus of economics?

- Economics is not the study of money or getting rich. - Economics is not the study of the stock market. - Economics isn't about forecasting what will happen in a given market or the overall economy.

How did President Eisenhower explain the principle of scarcity, and the related opportunity cost, in 1953?

"Every gun that is made, every warship launched, every rocket fired signifies, in the finals sense, a theft from those who hunger and are not fed, those who are cold and are not clothed. This world in arms is not spending money alone. It is spending the sweat of its laborers, the genius of its scientists, and the hopes of its children."

What does macroeconomics study? What questions does it answer?

Macroeconomics is the study of production, employment, prices, and policies on a nationwide scale. It answers questions such as: - "Will unemployment rise if there is an increase in taxes?" - "Will an increase in the money supply boost output or just increase inflation?" - "Will a slump in European economies cause the US economy to slow down?"

What are the two branches of economics?

Microeconomics and macroeconomics.

What does microeconomics study? What questions does it answer?

Microeconomics is the study of how consumers, workers, and firms interact to generate outcomes in specific markets. It answers questions such as: - "How many workers should we hire to maximize profits?" - "If our main competitor releases their product in May, when is the best time to release our product?" - "Which is better at fighting climate change? A gas tax or increasing fuel efficiency?"

How have states started to change post-secondary incentives?

Now, more states reward schools for the number of students who complete courses or earn degrees.

How much does military spending for the United States cost per year? How does this stack up to other countries?

Over 600 billion dollars per year which is close to what the next ten countries spend combined.

What is the first important assumption of economics?

Scarcity: The tension between infinite wants and finite resources.

What did this financial incentive make universities focus on? What was the negative outcome?

The financial incentive made universities focus on recruiting as many students as possible. And the negative outcome was that they didn't actually focus on helping them succeed once they were in classes.

What is the opportunity cost of an aircraft carrier?

The opportunity cost of aircraft carriers could be hospitals, schools, and roads.

How did public colleges and universities use to get funding from government?

They got funding for every student enrolled.

How can this new form of incentive still backfire?

Ways this new form of incentive still backfires: - Universities can push students through to graduation without giving them a good education. - It might only want to admit students with really high grades. - It might push students into easier majors.

Why don't we avoid traffic fatalities at all costs?

We know driving has risks, accidents, yet we continue to drive; We need to drive our cars to get places- gym, grocery store; and Walking home in the rain is worse than the tiny chance of dying in a car accident.