Doug’s book has a provocative idea: people are always and everywhere motivated by Greed. Just what does this mean? John asks: Isn’t it a bit off putting to think this is the one and only motivation for human behaviour – and wrong, since many of us do clearly feel we are not greedy people? ” Doug replies….. (8 minutes long)
Building on the sketchy outline of the simple demand and supply model from Lecture 1’s class – and the experience of the trading pit – we follow Prof Allen in Ch1 by examining how economics is a particular way of thinking – a particular scientific way of thinking. Remember, this is just the beginning, a little framework to work with. PS – we ran out of time at the end of Lecture 1, but this segment was supposed to be the final part of that lecture. Of course we moved it into Lecture 2…but it really should be (and here is) labelled as part of lecture 1.
Next up we’ll look at some practical ideas about how to be a good critical thinker, reasoner , writer, listener…..whether or not you are using – economic models – to guide your reasoning.
Animated version of Ch 6 pp 134-136 example form Doug’s text. Click the “+” at the end of the slider to enter a numeric value. You will/may be prompted to register at Wolfram to download the CDF player. This registration process is quick and easy and safe – well as safe as apple, adobe, microsoft…since Wolfram has been around since as long as they have. Think of the CDF player as you would Adobe reader – exceptionally powerful of distributing interactive graphical visualisations of complex mathematical expressions.
1.1.g Thinking inside a “box” – 7 principles define the model