8 notes tagged with "economics"


Commodification Of Intrinsic Values

Value can be extrinsic(money) or intrinsic(love of your family, interest in a hobby). But in a market economy only extrinsic values are given any weight. This leads to commodification of intrinsic values.

Tagged With: #permanent-notes #psychology #economics

Published on May 19, 2024

Externality

In economics, an externality is a cost to an uninvolved party because of the actions of another party. Its generally a non-financial price - but it can be positive or negative.

Tagged With: #permanent-notes #economics

Published on Jan 24, 2024

Factors Of Production

This model was introduced by Adam Smith - Grandfather of Economics

Tagged With: #permanent-notes #economics #society

Published on Mar 27, 2023

Economy Control Mechanisms

Type of Economy depends on

Tagged With: #permanent-notes #economics #society

Published on Jan 24, 2023

Commons

Commons refers to a shared resource that can be used by all. If everyone uses it appropriately, it can last. But few people tend to over-exploit it - making it run out. This is called the Tragedy of the Commons.

Tagged With: #permanent-notes #economics #sharing #resources

Published on Nov 15, 2021

The Ovarian Lottery

Ovarian lottery is a thought experiment created by Warren Buffet influenced by a book called "A theory of justice". The idea behind the experiment is that a truly just society can only be created if everyone agrees to it before knowing where they'll land in the society.

Tagged With: #permanent-notes #thought-experiment #economics #justice

Published on Nov 02, 2021

Shorting the market

You do this when you expect the value of a stock to go down. You borrow a stock from a broker and sell it immediately at the current price. When the stock price falls, you buy the stock back at the lower price and return the shares you borrowed to the brocker - keeping the difference.

Tagged With: #economics #stock-market #permanent-notes

Published on Jan 29, 2021