Markets, Efficiency, and Price Signals: Crash Course Economics #19
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Date: 2022-04-04
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Comments and reviews: 10
Jinx
I'd like to bring up symbolic interaction for a minute. Symbolic interaction theory is the belief that people find meaning is images or ideas. Let's use phones as an example. If what consumers bought was based purely on quality then everybody would use Android phones, which are proven to be less likely to break, have a higher resistance to water. They also have had other features that Apple is just now releasing in their products for a longer period of time. However because of symbolic interaction people associate Apple with high-quality luxury products, even though their products are known to break easily and have only recently started producing water-resistant products and are willing to pay overly high prices. Another example would be if Porsche released a vehicle that broke down constantly, produced a lot of smog, and burned gas quickly. Even though it is a low quality car people would still pay high prices for it simply because of the name it's associated with. Now this isn't always the case but it is a major factor of what the general public consumes.
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I'd like to bring up symbolic interaction for a minute. Symbolic interaction theory is the belief that people find meaning is images or ideas. Let's use phones as an example. If what consumers bought was based purely on quality then everybody would use Android phones, which are proven to be less likely to break, have a higher resistance to water. They also have had other features that Apple is just now releasing in their products for a longer period of time. However because of symbolic interaction people associate Apple with high-quality luxury products, even though their products are known to break easily and have only recently started producing water-resistant products and are willing to pay overly high prices. Another example would be if Porsche released a vehicle that broke down constantly, produced a lot of smog, and burned gas quickly. Even though it is a low quality car people would still pay high prices for it simply because of the name it's associated with. Now this isn't always the case but it is a major factor of what the general public consumes.
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Rocketboy
Be the change you want to see in the world is a nice sentiment, but only works if there are ethical alternatives to participating in a market that does unethical things. If you live in a community where there is one store, and no one has the energy or ability to seek out alternatives to that store then you are stuck buying from that store whether they pay their employees well or not. This also fails to account for how completely inelastic goods being controlled by for profit companies means that people who need those goods can be exploited.
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Be the change you want to see in the world is a nice sentiment, but only works if there are ethical alternatives to participating in a market that does unethical things. If you live in a community where there is one store, and no one has the energy or ability to seek out alternatives to that store then you are stuck buying from that store whether they pay their employees well or not. This also fails to account for how completely inelastic goods being controlled by for profit companies means that people who need those goods can be exploited.
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Ron
Don't businesses remember how elastic their model was and not enter the market even when wal marts prices go up. why would I re-enter the market knowing that wal mart can just lower prices again and cause me to go bankrupt and lose my own money I had to work hard for and save? I don't think people just enter and exit markets as fluid as this video makes it out to be.
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Don't businesses remember how elastic their model was and not enter the market even when wal marts prices go up. why would I re-enter the market knowing that wal mart can just lower prices again and cause me to go bankrupt and lose my own money I had to work hard for and save? I don't think people just enter and exit markets as fluid as this video makes it out to be.
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Mauricioenvr
When Adriene said that U. S. A. wasn't fully a free market country i was surprised. Specially considering that from an outside point of view, America is portrayed as an entirely capitalist nation. So i wonder, which schools of economy represent the foundations for the policies of the current american government?
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When Adriene said that U. S. A. wasn't fully a free market country i was surprised. Specially considering that from an outside point of view, America is portrayed as an entirely capitalist nation. So i wonder, which schools of economy represent the foundations for the policies of the current american government?
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IronSmith
Money is amazing. What we do with it, the information it can carry, the lives it saves cannot be done in any other way yet experienced. Never give (except to show that you care for a person) and never take, always buy and sell. Let everything be a transaction in appreciation of work and goods of your fellow man.
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Money is amazing. What we do with it, the information it can carry, the lives it saves cannot be done in any other way yet experienced. Never give (except to show that you care for a person) and never take, always buy and sell. Let everything be a transaction in appreciation of work and goods of your fellow man.
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education
Thanks for that, -The ideal gift in terms of efficiency is cash! -
I have once regretted how much money I would have spent on myself instead of wasting them on gifts! Because right after gifting people they didn't/they 'consumed' less of them.
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Thanks for that, -The ideal gift in terms of efficiency is cash! -
I have once regretted how much money I would have spent on myself instead of wasting them on gifts! Because right after gifting people they didn't/they 'consumed' less of them.
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Daniel
Of course markets is one of the better ways to allocate resources, as prices are local and not global meaning that if demand goes up in a certain place so will price and this will obviously make companies want to sell more products at that place.
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Of course markets is one of the better ways to allocate resources, as prices are local and not global meaning that if demand goes up in a certain place so will price and this will obviously make companies want to sell more products at that place.
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Undefined
3: 42 Bring this up next time you have participate in one of those mandatory office secret santas, and tell your santa to just give you the envelope with the cash.
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3: 42 Bring this up next time you have participate in one of those mandatory office secret santas, and tell your santa to just give you the envelope with the cash.
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Prajwol
Altruism - the principle and moral practice of concern for happiness of other human beings or animals, resulting in a quality of life both material and spiritual
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Altruism - the principle and moral practice of concern for happiness of other human beings or animals, resulting in a quality of life both material and spiritual
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John
Why do you talk about opinions and arguments? Why not just teach the facts? Is it possible to teach without sharing viewpoints? I don't care about feelings,
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Why do you talk about opinions and arguments? Why not just teach the facts? Is it possible to teach without sharing viewpoints? I don't care about feelings,
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