Scarcity is the central idea that economics revolves around. In a world with limited resources and unlimited human wants and needs, the way we allocate such resources with the three factors of production is the central economic problem. For a class project, we drew a poster of three curves that we were currently studying: the long run aggregate supply, the aggregate supply, and the aggregate demand. On the poster, we also illustrated factors that would cause the curves to shift as a means of changing.
This project was very inspirational because I have a better understanding of what factors influence an economy in what after accomplishing the project. It helped a whole lot that there were illustrations of such factors so I have not only the concept, but an image of the concept in my head. In this class, we study relationships between two variables that are related through supply and demand. In these graphs, we assume that some variables are constant, and we manipulate only the variables that we are observing with the graph. So a solid visualization of such a concept helps a lot.
There were so many things that I learned after doing this project. Some stuff that I learned was how the aggregate supply and the aggregate demand curves shift according to how people react to a change in certain factors. It is very interesting because there are completely logical explanations to why they exhibit such behaviors. I also learned what shifts the long run aggregate supply curve which is probably most interesting.
This project was very inspirational because I have a better understanding of what factors influence an economy in what after accomplishing the project. It helped a whole lot that there were illustrations of such factors so I have not only the concept, but an image of the concept in my head. In this class, we study relationships between two variables that are related through supply and demand. In these graphs, we assume that some variables are constant, and we manipulate only the variables that we are observing with the graph. So a solid visualization of such a concept helps a lot.
There were so many things that I learned after doing this project. Some stuff that I learned was how the aggregate supply and the aggregate demand curves shift according to how people react to a change in certain factors. It is very interesting because there are completely logical explanations to why they exhibit such behaviors. I also learned what shifts the long run aggregate supply curve which is probably most interesting.
In class, we watched this movie called Inside Jobs which was a documentary about how the banking system collapsed and became very very huge starting from America. This phenomena was observed around the world, but the U.S. led the way for such a disaster to happen to the banking system. The banking system was actually revolutionized by the American way.
We not only watched this documentary, but we also had to reflect upon what we learned from watching it. And to my surprise, I actually learned quite a lot. We wrote summaries of what went wrong with the banking system, and I realized that it basically is the rich people pulling the strings at the top. It was really interesting to see that something can be created out of nothing, and by that nothing, I mean money.
It was a mind blowing concept that one can just create money. But with all this credit and debit systems that makes transaction so much easier for us, it also opens us up to being fooled by these big banks. The thing that was very sketchy in the movie that I learned about was that the very huge banks would lend out relentlessly to people, even though those people can not pay it back, but they would then sell these loans to other people, so that the risk is off of the bankers. The attractiveness of this is that the buyers of such loans will get to earn the huge interest rates. But the problem is that the interest rate can not even be paid of. It is incredibly interesting.
We not only watched this documentary, but we also had to reflect upon what we learned from watching it. And to my surprise, I actually learned quite a lot. We wrote summaries of what went wrong with the banking system, and I realized that it basically is the rich people pulling the strings at the top. It was really interesting to see that something can be created out of nothing, and by that nothing, I mean money.
It was a mind blowing concept that one can just create money. But with all this credit and debit systems that makes transaction so much easier for us, it also opens us up to being fooled by these big banks. The thing that was very sketchy in the movie that I learned about was that the very huge banks would lend out relentlessly to people, even though those people can not pay it back, but they would then sell these loans to other people, so that the risk is off of the bankers. The attractiveness of this is that the buyers of such loans will get to earn the huge interest rates. But the problem is that the interest rate can not even be paid of. It is incredibly interesting.